New GM pickups selling at good margin... - Ford Inside News Community
 
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post #1 of 7 (permalink) Old 03-05-2007, 12:51 PM Thread Starter
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New GM pickups selling at good margin...

GM pickups fetch good prices, seek market share


Jamie LaReau |

Automotive News | 1:00 am, March 5, 2007




DETROIT -- The new Chevrolet Silverado and GMC Sierra are commanding strong prices at dealerships, but it's too soon to tell whether they'll gain market share.

In January, the average purchaser spent $31,799 for a 2007 Silverado and $33,196 for a GMC Sierra.

By contrast, the average transaction price for all pickups was $29,363. Those prices come from the Power Information Network.

But there's no sign so far that the new General Motors pickups will lead owners of Ford, Dodge, Toyota and Nissan pickups to switch brands.

Loyalists are buying

So far the new Silverado and Sierra are selling mostly to loyalists -- men in their mid-40s who previously owned a Silverado or Sierra.

The Power data show that 48 percent of all Silverado purchasers traded a Silverado, up from 33 percent a year earlier. Overall, nearly 76 percent of trade-ins were GM vehicles.

Loyalists typically are first to buy a redesigned pickup, says Tom Libby, Power's senior director of industry analysis. In the months to come, the Silverado and Sierra are likely to attract more Ford and Dodge owners.

Right now dealers are getting lots of pickups equipped with V-8 engines and crew cabs. Those high-priced options appeal to the loyalists, Libby says. GM must offer more basic work-style trucks to win traditional Ford and Dodge pickup owners.


That's because GM's pickup inventory is still undergoing a transition from the old pickup, dubbed the Silverado Classic, to the new version. In the spring, the company will phase out production of the Classic.

When dealers have a full lineup of the new pickup this summer, GM will introduce marketing tools such as low-interest financing and trade-in assistance. Says Mark LaNeve, General Motors' North American marketing chief: "We're not going to do a zero incentive, but we're going to be competitive on the truck."

Although GM executives remain committed to their strategy -- lower sticker prices and fewer incentives -- some feel some anxiety. Both Ford division and Dodge appear willing to pile on incentives to prop up sales.

Ford division has put $3,000 on its 2007-model F-150 trucks. And Dodge is offering as much as $12,000 in factory rebates and dealer cash on a 2007 Dodge Ram.

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post #2 of 7 (permalink) Old 03-05-2007, 12:55 PM
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I am afraid they might take sales crown from F150. They are very competent trucks.
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post #3 of 7 (permalink) Old 03-05-2007, 01:05 PM
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Key phrase: Loyalists are buying

So far the new Silverado and Sierra are selling mostly to loyalists -- men in their mid-40s who previously owned a Silverado or Sierra.

The Power data show that 48 percent of all Silverado purchasers traded a Silverado, up from 33 percent a year earlier. Overall, nearly 76 percent of trade-ins were GM vehicles.


Same thing occurred with the Tahoe and Yukon and now sales have been pretty much deflating in accordance with the big SUV market.

Tahoe is down 24.4% this February 29.8% year to date, Yukon is doing better but noth much with 2.7% up YTD. If there is any shift in the truck market it will be due to the Tundra effect, if there is any.



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post #4 of 7 (permalink) Old 03-05-2007, 01:13 PM
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Key phrase: Loyalists are buying

So far the new Silverado and Sierra are selling mostly to loyalists -- men in their mid-40s who previously owned a Silverado or Sierra.

The Power data show that 48 percent of all Silverado purchasers traded a Silverado, up from 33 percent a year earlier. Overall, nearly 76 percent of trade-ins were GM vehicles.

Same thing occurred with the Tahoe and Yukon and now sales have been pretty much deflating in accordance with the big SUV market.

Tahoe is down 24.4% this February 29.8% year to date, Yukon is doing better but noth much with 2.7% up YTD. If there is any shift in the truck market it will be due to the Tundra effect, if there is any.
I would be very impressed if Tundra can get construction guys out of their F150's and silvarados. Their royalty is almost like a faith.
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post #5 of 7 (permalink) Old 03-05-2007, 02:09 PM Thread Starter
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I would be very impressed if Tundra can get construction guys out of their F150's and silvarados. Their royalty is almost like a faith.


I agree. But I hope the domestics aren't counting on it, or taking it for granted. Not all that long ago there were legions of Galaxie and Impala drivers that couldn't even pronounce "Toyota".

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post #6 of 7 (permalink) Old 03-05-2007, 02:25 PM
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I agree. But I hope the domestics aren't counting on it, or taking it for granted. Not all that long ago there were legions of Galaxie and Impala drivers that couldn't even pronounce "Toyota".
They better not. GM has John Cougar and Ford has an arsenal of aggressive marketing and a new truck for next year. I think that they both have learned their lesson and both are also painfully aware that trucks are key for their survival.

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WOW! What a horrible proof reading I have been doing. Look below, where megeebee quoted me, for the unedited post. Gross! Good thing megeebee is a bright person and was able (I hope) to read it as I intended.



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post #7 of 7 (permalink) Old 03-05-2007, 02:32 PM Thread Starter
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They better not. GM and John Cougar and Ford has an arsenal of aggressive marketing and a new truck for next year. I think that they bit have learned their lesson and both are also painfully aware that trucks are key for their survival.


"Your lips to God's ears" is the appropriate response, I believe.

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