Barclays: GM Suffering From Worst Large Pickup Launch In 15 Years

barclays gm suffering from worst large pickup launch in 15 years

Though the 2014 Chevrolet Silverado took home North American Truck/Utility of the Year at last month’s Detroit Auto Show, the large pickup and its brother, the GMC Sierra, have suffered from “the least successful large pickup launch over the last 15 years” according to Barclays Capital analyst Brian Johnson.

Automotive News reports the truck twins “faced a full-court press” from the Ford F-150 and Ram 1500, though winter weather also played a role in lower sales across the board. General Motors executives have come to the defense of their products, proclaiming average transaction prices of $4,000 to $5,000 more than the previous generation pickups and a combined market share hovering around 33 percent over the past few months, though the latter point held between 35 and 40 percent of the market in years past.

With dealers begging for stronger promotion and better incentives for the pickups, Chevrolet will host its Chevy Truck Month promotion. The month-long sale will offer supplier pricing (dealer invoice plus destination charges and a $150 fee) on light- and heavy-duty Silverados, and will be heavily pushed during the NCAA Men’s Basketball Tournament with television advertising beginning March 18.

In addition, Chevrolet, Buick and GMC will all hold Open House events throughout the month of March. The month-long sale will offer supplier pricing on nearly every 2014 vehicle sold under each brand, with the exception of the SS and Corvette Stingray for Chevrolet.

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  • Lou_BC Lou_BC on Mar 01, 2014

    @agenthex - umm. Yes. Things sound so much better in lawyer speak. Shifts in regulations and protectionism pushed the Detroit auto industry towards large SUV's. That started in the '70s when cars were forced to meet tougher emissions and anything classified as a truck were subject to easier rules. That also applied to safety standards. The Big 3 chose to focus on profitable SUV's. They basically let the Japanese have the car market. The advent of the Extended cab p/u opened the door wide open to pickups as family passenger vehicles. Tariffs helped limit competition from the Japanese. CAFE rules are footprint based so there is a built-in advantage for making full sized pickups. Regular cab small trucks are already being killed by Toyota since they tend to be the domain of low dollar customers and must meet more strict rules.The next gen Colorado/Canyon do not have a reg cab option. Some have said that full sized reg cab 1/2 tons are also at risk because short-box versions fall into the "small" truck emissions category. Current pickups have gotten "high tec" relative to the truck market. We now have active aerodynamics, self adjustable suspension, 8 speed transmissions and soon 9-10 speed transmissions. Engines have gotten more sophisticated and the leather interiors of most trucks rival that of luxury cars. It all costs money. Gone are the days of a vinyl bench seat, 3 on the tree and a ride rough enough to shake the fillings out of your teeth.

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    • Big Al from Oz Big Al from Oz on Mar 01, 2014

      @Pch101 and your genetic clone DiM, WFT? Are you guys for real. Pch101, you really do surprise me with some of your logic. Talk about limiting your minds due to an American Exceptionalist dream. Are you guys creationist?

  • FJ60LandCruiser FJ60LandCruiser on Mar 02, 2014

    There's nothing groundbreaking in terms of engine choices, exterior, or interior design. I have owned several GM products and there's no "night and day" between the previous gen and the current models, they just look a bit different but there's no significant improvement. The Work Truck grade vehicle I drove had the same plasticky interior my 2500 HD did, cheap plastics, and poor interior dash panel fit. I may still get one of the 2500's as my needs change and I need to tow and haul more, but they'll have to be out for a few months/years so that I can get a good fleet deal on one.

  • Lou_BC Lou_BC on Mar 02, 2014

    @Big Al from Oz - admitting to how tariffs have shaped the auto industry and the marketplace would mean admitting to the vulnerability of the USA auto industry and admitting to the fallibility of one's country. @DiM - common sense as defined by paradigm that you exist within.

  • Lou_BC Lou_BC on Mar 02, 2014

    @Pch101 - I didn't know that all of my sources were funded by the Koch brothers. American University Law Review isn't CATO. Is the WTO also under CATO? How about the Office of the Foreign Secretary, Commission on Engineering and Technical Systems, National Research Council? Libertarianism must be tearing apart the very foundation that built the USA.

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    • Big Al from Oz Big Al from Oz on Mar 03, 2014

      @Lou_BC In a decreasing order are the factors that make up a vehicle market. 1st. Economic factors. Essentially if you ain't got the money you ain't driving.............anything. 2nd. Regulatory/protectionism. This influence a market by availability of vehicles that have a favourable bias in their sales ie, chicken tax. 3rd. Environment/Infrastructure. You need infrastructure to support the vehicles you operate, ie Australia, Canada and US have an extensive road system that can support large vehicles. European/Asian road systems can't. Go to a developing nation with few vehicles and a road system worse than Europe can still support a large vehicle. This is due to the small number of vehicles. The above three reason are the most important factors in creating a car/vehicle culture. Pickups became popular in the 50s and 60s because they generally attracted less tax. If it wasn't for the chicken tax the US vehicle market would be different today. I suppose Pch101 and DiM don't think CAFE has any influence of the US vehicle market either.