Chart Of The Day: Why Colorado Sales Expectations Are Low
by
Timothy Cain
Published: August 10th, 2014
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It’s difficult to possess anything other than low U.S. sales expectations for GM’s new pickup trucks, the Chevrolet Colorado and GMC Canyon, even before you know the exact prices, or the prices people actually pay for new Silverados.
Toyota Tacoma volume, prior to this year, was perking up, but not nearly to the level it was at in 2006. Similar statements can be made regarding the Nissan Frontier and Honda Ridgeline. Numerous other pickup trucks have disappeared, and remaining competitors haven’t been able to take advantage of those disappearances.
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@Big Al--I think some of these guys think all smaller vehicles are suppose to be cheap and low end. Most of us have been raised with the bigger is better and smaller is cheap and inferior. Most Americans have a different attitude toward anything smaller. I think the Colorado/Canyon will sell well enough and they are an alternative to those who do not want or need full size and for those who do not want to pay extra for aluminum bodies. Yes I agree these twins will not overtake the sales of full size half ton trucks but these trucks will do well enough and being based on the global Colorado the cost to develop these twins is not as much as developing a new truck from the ground up. Sure this Colorado looks different but it shares enough with the global version. Few vehicles today don't share platforms and components. In the future even more vehicles will share platforms.
Almost all of the newer (After MY2000, we'll say) small trucks are either Toyota's, or are owned by O'Reilly's. I'm not a Toyota fan, but they pretty much own the entire category in America. I think compact trucks are bloated, though. I drove a friend's GMC Canyon once. It was as large as my 1992 Dakota (which Dodge advertised as a midsized). I looked at buying a 2007 Dakota, but it was as large as an F-150. Why not just take the F-150? Everyone else seems to.
Interesting timing for this article when you consider that AutoNews did a very well researched article saying the exact opposite - that the new Canyon and Colorado are poised to be very well received. http://www.autonews.com/article/20140811/RETAIL/308119963/price-gap-creates-opportunity-for-gm-s-colorado-canyon
Timothy Cain, Here some data to digest. 1. The average monthly inventory for full size pickups between 2000-2008 was approximately 572 000. Between 2009-2013 it was 410 000. 2. In 2006 the net transaction price differential between a full size and a midsize was 28%. In 2014 it is 42%. This indicates there is room for a midsize to sit below a full size in pricing. 3. The average transaction price for a full size pickup in 2002 was $25 000 and in 2014 it is $38 000. This again re-inforces point two for room for a midsize segment in the US. Looking at the above data it appears there has been a decline in the full size pickup segement, not an insignificant one either. Also, the transaction cost for a full size has increased by 50% in 12 years with the widening of 50% in the average transaction cost between a midsize and full size. This indicates that maybe the US pickup manufacturers are milking the consumer. Maybe it's about time the US government removed the chicken tax as it appears it isn't required.