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ggbaird



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PostSubject: Successful?   February 27th 2014, 10:04 pm

Quote :
Barclays: GM suffering 'least successful large pickup launch over the last 15 years'

General Motors has really taken it on the chin this week with the recall of over 1.3-million cars and a separate potential safety issue found in over 200,000 of its 2014 pickups. Things aren't getting any better, because now questions are being raised about the early sales success of its new trucks. Barclays Capital analyst Brian Johnson tells Automotive News, "the launch has been arguably the least successful large pickup launch over the last 15 years."

Ouch. Of course, that's not necessarily GM's fault – most analysts are predicting that GM sales will fall in February due to the bad weather that froze much of the country. However, GM has reportedly lost market share to Ford and Ram, at least in part because its rivals can offer better incentives on their trucks. Sales also dipped in January when Chevrolet sales were down 13.27 percent and GM was down 11.92 percent. The General's February sales will be announced on March 3.

GM has been chided by some for what has been seen as a remarkably conservative redesign of its Silverado and Sierra.

To offset the possibility of dwindling sales, Automotive News claims that Chevrolet is going to run an incentive blitz in March to offer supplier pricing on nearly every car and truck in its lineup, including the new SIlverado. It will be the deepest discounts offered on the 2014 truck yet, and will be promoted during the NCAA men's basketball tournament.

On the plus side of the ledger, Automotive News reports that the average transaction prices on GM's trucks are up a whopping $4,000 to $5,000 than those of the last-generation truck a year ago – that certainly doesn't sound like a failure to us.

That said, GM has been chided by some for what has been seen as a remarkably conservative redesign of its Silverado and GMC Sierra pickups. The new trucks have been criticized for looking very similar to their predecessors and for not adopting new technologies and features found in competitors – namely items like higher gear-count transmissions and more sophisticated rear suspensions. Despite that, the trucks have come in for a great deal of praise, particularly centered around their ride and handling balance as well as their low levels of noise, vibration and harshness. In January, those merits and others were enough for the Silverado to be named North American Truck/Utility of the Year.

Autoblog has reached out to GM for a comment on the Barclay's analyst's thoughts and the Automotive News story, and is awaiting a reply.

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Diesel Dan

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PostSubject: Re: Successful?   February 28th 2014, 1:22 am

February sales will be interesting.
My prediction is:
GM- Flat
Ram-up
Ford-up

Edit:
For truck sales.
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Diseasel



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PostSubject: Re: Successful?   February 28th 2014, 10:50 am

Yes, I thought it was a poor redesign, the silvy looked ridiculous with it's OCD-like square shape emphasis. The GMC looks like a Honda Pilot. There was no common sense with using that goof-ball car designer. They'll will need a face lift redesign sooner than originally planned. And the price increase didn't help.
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Diseasel



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PostSubject: Re: Successful?   February 28th 2014, 11:03 am

With all that cash on the hood, trucks sales should be up.
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pup

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PostSubject: Re: Successful?   February 28th 2014, 11:19 am

Ho hum power trains.

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Diesel Dan

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PostSubject: Re: Successful?   February 28th 2014, 2:22 pm

pup wrote:
Ho hum power trains.


I disagree, engine wise.
The 5.3 and 6.2 seem to be very good engines. GM screwed up by not allowing the 6.2 to be ordered on more trim levels and limiting production of the engine. The 4.3L V6 is good but they should not have kept that displacement. Either go up or down 0.1L to differentiate it from the old V6. I'm not sure I want them to rush the 8 spd autos since it took them a while to get the shifting right for the 6sp.
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joemac

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PostSubject: Re: Successful?   February 28th 2014, 2:48 pm

Quote :
Average transaction prices on GM's trucks are up a whopping $4,000 to $5,000.

This can't be stated enough. 10% increase in transaction price is significant. This is a good problem to have if your in the business of making money. This will surely leave some customers out bargain shopping other brands. Thus loss of share being the negative.

Read a review on GMI yesterday where the 5.3 was getting 23-24 mpg indicated on the highway in a Suburban. That's significant. Cautiously optimistic the the GM powertrains are very well rounded, not class leading in total power output comparisons but deliver in MPG and other ways that are difficult to measure. Noise, chassis.

Lots of analyst paper bench racing analysis. Transmission ear count? Old rear suspension technology. Me looks at Ford. Hmmmm
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Hilux



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PostSubject: Re: Successful?   March 2nd 2014, 1:14 am

Does not surprise me Ram and Ford are progressing a trying new stuff and GM is the stodgy truck company now .
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Diesel Dan

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PostSubject: Re: Successful?   March 2nd 2014, 10:50 am

joemac wrote:
This can't be stated enough.  10% increase in transaction price is significant.  This is a good problem to have if your in the business of making money.  This will surely leave some customers out bargain shopping other brands.   Thus loss of share being the negative.
True but only too a point.

The Pontiac Solstice and Saturn Sky had margins in the $8-9K range per unit.
However their fixed costs from being in a plant with far too much capacity exceeded those margins. If GM keeps loosing market share and sales they will reach the point of excess capacity and thus increased fixed costs.

It is a balancing game of margins and volume.
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rustbucket



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PostSubject: Re: Successful?   March 2nd 2014, 2:21 pm

Diesel Dan wrote:
It is a balancing game of margins and volume.

I'd agree. My gut instinct is that the industry is headed for a downturn ... too much capacity worldwide chasing too few buyers. It's great for buyers but I don't see the ever increasing amounts of money on the hood in the form of rebates and/or employee/supplier pricing and 0% interest rates as a good sign. The revision in the fourth quarter U.S. economic growth rate from 3.2% to 2.4% is another not so good sign, especially considering many economies are worse off than ours.

That said, the industry is in a much better position to weather a downturn than it was six or seven years ago.
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