Is now the time to buy a new Truck? GM’s need to clear pickup inventory could boost 2

Discussion in 'Chevy Truck Talk & GM News' started by Enkeiavalanche, Dec 21, 2012.

  1. Enkeiavalanche

    Enkeiavalanche Loving the Outdoors Staff Member 5+ Years ROTM Winner 5000 Posts

    [h=1]GM’s need to clear pickup inventory could boost 2013 aftermarket accessory sales[/h] [​IMG]
    By: Restyling News
    Monday, December 10, 2012

    General Motors, which posted an unexpected 8% drop in November pickup sales compared to the previous year, has more than doubled its typical supply of trucks and has released bigger discounts in order to move trucks off dealer lots.
    "If you were shopping based on price in November, GM trucks looked much more expensive than the competition," Jesse Toprak, an industry analyst at "Part of it is seasonality and part of it is the fact that the competition is certainly not being shy when it comes to spending money on trucks. That will force them to bring their incentive levels up to that of the competition."
    A GM program that started Dec. 7 and will run through Jan. 2 will allow dealers to add as much as $2,000 in customer cash to 2012 and 2013 Chevy Silverados and GMC Sierras, according to a memo sent to dealers. A GM spokesman wouldn’t discuss the details of GM’s incentives but said the company will do what is necessary to “level the playing field” with rivals offers, as reported by Mike Colias of Automotive News.
    Alan Batey, GM vice president for U.S. sales, said that although GM gave up pickup sales in November, its priority was to maintain pricing. He also reiterated the fact that the company experienced its best November sales numbers since 2007.
    Kurt McNeil, GM vice president of sales and operations, told analysts and reporters in a Dec. 3 conference call that adjusting production would be “first and foremost” in dealing with high inventory levels. Due to consumer confidence, rebounding housing and the fact that December is typically one of the strongest sales months of the year for the Silverado and Sierra, he said that this month will result in better truck sales for GM.
    If so, truck accessory dealers should be prepared to accommodate increased customer demand during the first quarter of 2013 because new-truck owners tend to seek accessories within 90 days of their purchase. Although GM’s profits might be negatively affected, the automaker’s need to clear its inventory could lead to a surge in profits for aftermarket accessory dealers. If GM increases incentives for dealers and their customers (such as its recent ample discount incentives on its Chevy Silverado pickup), buyers could be snatching up big pickups such as the Chevrolet Silverado and the GMC Sierra at much lower prices. Thus, truck buyers will have unexpected funds leftover to spend on aftermarket upgrades.
    If GM cannot clear its pickup inventory, the rollout of new versions of the Silverado and Sierra, scheduled for release next year, is at stake. The models are among the most popular in GM’s big pickup lineup, which made up 23% of the automaker’s U.S. sales last year, as reported by Tim Higgins of Bloomberg.
    Most automakers try to have 60 days’ worth of sales on dealers’ lots. Last month, GM’s supplies amplified to 139 days from 110 a month earlier. Additionally, GM was caught off guard by such rivals as Ford and Chrysler that cleared out 2012 model-year pickups with their own incentives.
    Sales reports released by Chrysler and Ford noted that Ram pickup sales increased 23% in November, while Ford’s F-Series deliveries increased 18%.
    Chrysler reported on Dec. 1 that its inventory levels are 50% higher than the 60-day supply the company has tried to maintain since exiting bankrupcy in June 2009. A Chrysler spokesperson said the inventory will support the automaker's year-end marketing push called its "Big Finish" event and should return to more traditional levels in early 2013.

    - - - Updated - - -

    Some more news......

    [h=2]Truck Sales Begin To Waver Nearing The End Of 2012[/h][​IMG] While November 2012 truck sales continue to rise, GM posts a drop in sales for its Silverado and Sierra pickups. Sales for these vehicles were down 10.4 percent from last year, but this may also be due to the early retooling of 2014 model trucks that has allowed current model inventories to drop.
    In addition, the mid-size truck category also seems to be on a downward trend. The Nissan Frontier, Chevrolet Colorado, and GMC Canyon, have repoted sales decreases comnpared to 2011. Meanwhile Dodge Dakota sales seem non existent adn the Ford Ranger is not far behind. Commotion in the auto industry has GM and Ford commiting to their full-size truck lines in the near future, but there's also a definite move towards CUV vehicles that may or may not replace mid-sized truck models.
    November 2012 Sales Figures Compared To Novemer 2011
    Ford F-Series - 56,229, Up 17.9 Percent
    Chevrolet Silverado - 30,674, Down 10.4 Percent
    Ram 1500, 2500, 3500 - 24,337, Up 23 Percent
    Toyota Tacoma - 12,272, Up 26 Percent
    GMC Sierra - 11,726, Down 2.0 Percent
    Toyota Tundra - 8309, Up 31.6 Percent
    Nissan Frontier - 3882, Down 10.2 Percent
    Nissan Titan - 1750, Down 18.5 Percent
    Chevrolet Colorado - 1327, Down 32.9 Percent
    Honda Ridgeline - 1290, Up 38 Percent
    GMC Canyon - 330, Down 28.6 Percent
    Ford Ranger - 28, Down 99.6 Percent
    Ram Dakota - 0, Down
  2. stchman

    stchman Active Member 2 Years 1000 Posts

    Not to mention with the summer release of the 2014 Silverado, not too many people are going to want a 2013 in a few months when they can wait and get the much improved 2014.

    I think GM is releasing the 2014 TOO early.
  3. 1953bowtieguy

    1953bowtieguy Rockstar 4 Years 500 Posts

    Ya i love GM but i think they cant wait forever to release the new 2014 Chevy, i dont like the chevy looks. But somehow i like the looks of the GMC. So they can release the GMC just not the chevy
  4. stchman

    stchman Active Member 2 Years 1000 Posts

    Yes, because the 2014 Silverado and Sierra look COMPLETELY different. Besides the grill, headlights, and some slightly different fender treatments, they are essentially identical trucks.

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