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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 16, 2012 6:29AM
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Buy a new truck, feel energized for about 3 months, get the huge excise tax bill, take a huge depreciation hit, a few little dents and dings and your right back to your old vehicle wondering why your such a fool.
Dec 16, 2012 5:13AM
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i have had an 06 silverado crew 4.8 since new. the only thing that has stop working are 2 speakers in the front. with 120000 plus miles it still averages 17mpg . i do agree it is time for gm to give us a new well designed model upgrade. they got my truck wright. thanks
Dec 16, 2012 4:57AM
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Don't worry my left friends, Bama going to fix it all, bail out the poor oppressed high quality union workers at GM again. Mitt you were so wrong to hold companies accountable, you fool you knew nothing about business. hahaha
Dec 16, 2012 4:40AM
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Wow! Lots of GM bashing out there. GM always seemed to lag behind Ford and Dodge when it came to the HD market. While Ford and Dodge were going head to head since the mid 90's in the diesel game it wasn't until '01 when GM finally introduced the Duramax. I've always heard good things about it so I'm not here to bash. Just pointing out that GM is always slow on the draw when it comes to innovation. While Ford and Chrysler were rolling out their Mustang and Prowler models everybody kept wondering when GM was going to roll out the Camaro. Again, had to wait a long time for GM to finally roll out the new model.

 

Dodge Cummins rules!!!!!!!!!!!!!

Dec 16, 2012 4:06AM
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I have had three new GM products in the last 10 years and every one of them was junk, and the runaround that you get from the dealer to try to get any warranty done is not worth ever owning any GM product again.
Dec 16, 2012 2:56AM
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I had a Chevy truck like the one pictured, regular cab short wheel-base. I really did like the truck, but its' DRINKING PROBLEM landed it on another dealers' used car lot. My opinion, it should have gotten MUCH BETTER fuel economy than it did. I might have even been happy had it got the ADVERTISED fuel economy on the window sticker!!! But it did neither, and drank fuel like a mid-70s' carburetor truck. It actually got worse fuel mileage than the 2006 I traded in for it, so GOODBYE!! I would not buy another GM until PROOF of fuel economy now.
Dec 16, 2012 12:52AM
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hahahahahaha !!!! Damn Amerishit, 40K for 3 ton of 1960's technology LOL....LOL.....LOL....LOL....
Dec 16, 2012 12:25AM
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The price of a new truck is a disgrace to the truck manufacturers or it should be, 40 k for a pickup,  the only reason they charge so much is the public accepts it, & there in lies the problem, quit going for the scam, just wait one year with out buying anything, and let the auto/truck industry know how you feel. Hell most of the parts are made some where else other than America, the government is got it's hands in the scam also, screw them, they have been steadily screwing the public. I will not go for it an neither should you.

 

Dec 15, 2012 11:09PM
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The reason for the glut is that the bailedout automakers wanted to show a huge profit for 2012 in order to justify the bailout. they did this by manufacturing more than they could sell and calling it sales anyway because the vehicles existed. Now they have to actually move these 'pre-sold' items at a discount in order to balance their books and show a profit next year. Welcome to bailout hocus-pocus. Keep drinking the KoolAid.
Dec 15, 2012 9:04PM
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chev's  are worth no more than 8k,,any model. they just don't stand up
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