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2011-07-07T10:55:00-07:00

2011 Chevrolet Silverado 1500 LTZ
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When General Motors planned production of pickup trucks for 2011, the automaker counted on a strong economic recovery to drive pickup sales to pre-recession levels. Given that pickups have higher margins than cars, that seemed like the best way to increase profits and drive up stock prices.
The problem is that the planned economic recovery hasn’t happened, and truck sales aren’t anywhere near the automaker’s projections.
Jim Ellis Chevrolet, a metro Atlanta dealership, was stocked up on [COLOR=blue !important][COLOR=blue !important]Silverado[/COLOR][/COLOR] pickups by GM early this year. Sales haven’t materialized, and the dealership is faced with over six months worth of inventory at current sales rates, a situation the dealership’s general manager calls “a little scary.”
GM currently has some 280,000 Silverado pickups on dealer lots, which translates into 122 days' worth of inventory. That’s not a concern for GM’s vice president of U.S. sales, Don Johnson, who cites the complexity of the product line as justification for the larger inventory. Cars only come in a few configurations per model, so a “normal” inventory for a particular automobile would be 60 or 70 days. Because trucks come in more shapes, sizes and variants, Johnson sees 100 or 110 days' inventory as normal.
In defense of the current situation, Johnson told the Detroit Free Press, “We’re managing the business to match production with demand in the marketplace. Nothing in the last few months that we have done would indicate any different.”
Indeed, GM has idled truck plants in Michigan and Indiana through July 15 to address the inventory buildup, and further adjustments may be necessary to normalize inventory. Lower production is already planned for the second half of the year.
That’s not enough to satisfy some critics, including Peter Nesvold, and [COLOR=blue !important][COLOR=blue !important]industry [COLOR=blue !important]analyst[/COLOR][/COLOR][/COLOR] for Jefferies & Company. Nesvold points out that Ford is running at 79 days' inventory across their equally-complex [COLOR=blue !important][COLOR=blue !important]pickup [COLOR=blue !important]truck[/COLOR][/COLOR][/COLOR] product line, and says that GM averaged just 78 days' inventory at year end from 2002 to 2010. In a research note, Nesvold goes so far as to ask, “Is GM falling into old, bad habits?”
The truth probably lies somewhere between the two extremes. GM’s truck product line is overdue for a revamping, which isn’t likely before the 2014 model year. With inventory high, it’s likely that dealers are willing to negotiate on price, so if you’re in the market for a GM pickup, there’s no time like the present to cut a deal on one.
 

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The last sentence says it all. If you ever dreamed of sticking it to the dealer, there is at least one (Atlanta market), that is starting thing about picking up the soap!
 

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They will still make money on a deal no matter what..... However that is kinda scary that GM is running that high on inventory since even going into the recession they didnt hit those levels... Do i see 10K in rebates coming on the GM trucks??? Come on GM i american made and want a truck that is to keep it together!
 

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I've been looking for a new GM for months and one issue that keeps coming up is even though dealerships have lots of trucks in inventory or access to large inventorys of new trucks they dont want to go out of their region to get a specific vehicle and most of the vehicles available arent premium vehicles so that you dont have as good a choice for color or options.
Or your stuck with regional packages you dont want. It's still not a great time to buy a new truck just yet, I'm thinking this fall as we get closer to the new year things will really get in a panic when dealers have to pay tax on some of their inventory they'll be ready to really deal.
 

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Agreed, the stage is set for some good deals but if it's not really the truck you want then it's not really a good deal. My dad has been looking for a 1500 with the 6.2 but local dealers just aren't stocking them. If dealers are having problems with high inventory, then the last thing they want to do is bring another truck in.
 

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Now is the time....

....to save a ton of $. The dealers in my area are starting to panic because they got so many 2011's. So , knowing this I bought a 2011 Silverado for almost 12,000 off the sticker of 39,000. Best deal I ever got on a new truck. You have to be willing to go with White, Black, Red or Grey/Silver becuse thats all they got for some strange reason, I got lucky and found a special order Laser Blue Metallic LT with the Chrome package including the 20'' Chrome wheels. I have only ever seen 2 or 3 of these and it really stands out in the crowd. I will post up some pics one of these days.
 

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Congrats on the new truck.
The color issue has slowed me down from purchasing, I want a dark blue truck and as you noted they have a large stock of certain color trucks.
History tells me I'll keep any new truck a long time (I've owned my present truck 12 yrs) so I'm holding out for a truck I like in all respects because it'll be in the driveway a long time.
 

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My dealer is using 2 lots other than their own to park their new trucks on.I have never seen so many trucks on their lots.
 
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