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GM's glut of pickups leads to extra-large incentives

Year-end deals from GM, Chrysler, Ford and even Nissan mean it’s a great time to buy a truck.

By Douglas Newcomb Dec 11, 2012 12:34PM

With dealers rushing to meet sales quotas and automakers vying for “best-selling” bragging rights, December is always a good time to buy a new vehicle. This time, however, is a particularly great time to buy a pickup truck, especially from General Motors.


GM, caught with a glut of full-sized trucks -- 243,691 of them by November's end, or nearly double what it usually has -- is offering aggressive incentive packages on Chevrolet Silverado and GMC Sierra models. According to a Bloomberg report, incentives could rise to as much as $5,000 per pickup in December, compared with less than $4,000 on Silverados last month. With an all-new Silverado launching next summer, GM is especially under the gun to whittle down inventories.


Automotive News points out that such bloated inventories recall GM’s pre-bailout days and that the automaker’s market share is at its lowest in 90 years, which is “threatening profits or spooking investors.” But GM says that its discounts are in line with those from Chrysler and Ford.


Regardless, if you’re in the market for a pickup, now is a good time to make a deal.

According to Bloomberg, GM’s truck incentives are still well below the $8,200 incentive packages Chrysler is advertising on its website for Ram pickups, and also below the $7,000 in incentives Ford is offering on its popular F-150 pickups. Nissan is also advertising incentives on its Titan pickup that can total almost $7,500.


To make GM pickups competitive with some of these offers, Peter Nesvold, an industry analyst with Jefferies & Co, told Bloomberg that Chevrolet dealers can cobble together discounts as large as $7,000 on some high-end trucks.


These incentives from the Big Three domestic automakers are still well below historic highs. Bloomberg points out that incentives on GM pickups are similar to those in December 2011, which on the Silverado were estimated at $4,500.


GM says it doesn’t want to return to its pre-bankruptcy bad habits. At the beginning of 2013, the automaker said it plans to cut production, if necessary, before going further with such incentives.


[Source: Bloomberg, Automotive News]

223Comments
Dec 15, 2012 6:28PM
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You can have your GM gas guzzling, unreliable, pick ups. My 91 Toyota with a 5 speed and the 22R engine has 293,902 miles on it. (I just checked). The engine is 100% original, burns and leaks no oil. All cylinders have good compression. The clutch is still the second one that I put in at around 155,000 miles. The body has few squeaks and rattles, the cigarette lighter still works, and the transmission (the original one) still shifts tight into the gears. I bought the truck in 1995, paid it off in 1999, and for the past 13 it has paid me back in dependability and reliability. I hope to be driving it in 10 more years!!!!
Dec 15, 2012 6:23PM
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Alright you bunch of GM bashers, i have a 2005 Silverado HD that has not given me ONE DAYS TROUBLE in 100,000 miles of use.  Put that in your pipe and smoke it!
Dec 15, 2012 6:22PM
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I have a 13 year old Dodge Dakota which I bought new.  It has about 130,000 miles, which have been fairly trouble-free...with just normal maintenance costs and a few minor repairs along the way.  When I look at new price tags of $30-40-50,000, I just have a hard time thinking about spending that much $$ on a truck which will be used off-road on occasion like hunting trips in the fall or maybe 1 or 2 weekend camping trips.  Also, for less than the cost of 2 months payments on a new truck, I can have every recommended service and needed repair done on the Dakota to keep it running for a few more years.
Dec 15, 2012 6:11PM
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With Michigan going right to work, GM will be able to hire competent employees instead of the whining union members!!!! 
Dec 15, 2012 5:55PM
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the ram 1500 will be the best selling truck in 2 years,
Dec 15, 2012 5:37PM
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Government Motors is a bloated, bureaucratic slow organization that has lost touch with it's customers.  Now that Obama has signed over majority ownership to the UAW the quality and performance are bound to suffer even more. I've worked with GM, Ford, Chrysler, Honda and Toyota engineers for years.  There is a huge difference in the company culture of quality and reliability between each of these companies.  I would rank them in the following order.  Toyota, Honda, Ford, Chrysler and then far behind .... GM.  I have to admit that the government bailout was a blessing for many if not all the automotive suppliers but the assignment of partial ownership to the UAW is a disaster.  You know like the fox guarding the chicken coup.  Stay away from GM. 

Dec 15, 2012 5:36PM
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Well, after reading these 8 pages of postings, mostly very negative, my urge to buy a Chevy P/U has just been squelched!  I was not looking at a new one, hell, my first home in Ohio was cheaper than one of these new, overpriced trucks!  I have an 89 Chevy 3/4 ton with 142,000 miles on it and I may just keep it running as long as I can...If not, then I'll see you at the Toyota, Ford, or Dodge dealers for a late model P/U...
Dec 15, 2012 5:28PM
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I'll stick with my 1977 Ford f-150 that has rolled over 300K that I know of. My Father-in-law bought it new in '77 and it still runs strong at 36 years. I don't drive it as much because of gas prices but it will still haul anything.
Dec 15, 2012 5:27PM
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What about Toyota and Dodge? Oh...that's right. They actually have quality trucks...
Dec 15, 2012 5:21PM
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Was brought up in chevy trucks, then went out on own, saved for year and bought a new 1-ton 1988 chevy dual wheel with gas 350-engine   my first new purchase, it was like i bought a used truck that came with all the problems, the dealer in Concord N.C. tried to fix the problems, many of them were repeat, while this was going on my friend a welding contractor let me drive his new 1988-F 350 Diesel,  I about **** . I new i had made a bad move buying the Chevy truck. A couple weeks later i removed my bed off chevy truck and traded for a 1988-F 350 diesel. I lost big money on trade but it did not matter . Today i am still driving the F-350, it is dec. 2012  with over 300,000 miles.

Many of my friends drive chevy trucks, but to stay friends with them i don't tell them i will never buy another truck from chevy dealer,  because there is no comparison , i have been there.

Steve the compressor man.

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