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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 12:25PM
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Part of the problem is these union made manufactured hunks of crap are not worth the outrageous price they are asking for them especially considering they are gas guzzling hogs!!!
Dec 15, 2012 12:25PM
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5 Grand? Nope, I don't think so. GM loves its trucks a little much, as evidenced by the retail prices. That's a BIG reason they've got such a huge surplus, and to a $40,000 truck, reducing the price by an additional $1000 is not going to boost sales by much, if at all. Of course, why should they care about competitive pricing and turning out a quality product when the Government will just bail them out again?
Dec 15, 2012 12:16PM
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After the bailout I vowed I would never spend any of my money on a GM or Chrysler product ever again. As an independent mechanic I can honestly say that GM is extremely good for my business.  I am able to predict with certainty the problems that GM owners will face at various mileage markers with their vehicles. 

 

As was mentioned before, the availability of parts is usually a huge problem.  Most of the issues with GM products are wide spread throughout there product line.  Therefore parts are usually high in demand, and parts shortages are common.  I do not see any improvement in product quality or customer service since the bailout.  I believe it is only a matter of time before GM is again in financial trouble. 

 

Dec 15, 2012 12:01PM
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They wouldn't have such a glut on their hands if we had fair tariff laws. Equality, Dont we all wish we knew what this current regime meant by that when they took over. 
Dec 15, 2012 11:50AM
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D'ya think GM's bloated truck inventory has any basis in their accounting practice of recognizing factory "sales" when vehicles are shipped to dealers? Combine this scuzzy tactic to show a smoke-and-mirrors "profit" to taxpayers with low quality and inferior products, and we know why we'll be paying for Guvmint  Motors and the UAW for many years to come.
Dec 15, 2012 11:50AM
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Automakers keep building and trying to sell trucks that don't fit the market anymore. Where are the small, efficient  diesels in their lineup, they don't exist? Instead they keep forcing full size gas guzzlers down our throats expecting people to keep buying a vehicle that doesn't fit in with the current price of gas. Once they start building a small pickup that's worth buying again I'll think about going down to a dealer but for right now I'll watch from the sidelines regardless of any incentives they can brew up.
Dec 15, 2012 11:50AM
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Obama Motors lasted just long enough to serve the needs of the Furor.
Dec 15, 2012 7:47AM
Dec 15, 2012 6:31AM
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Get you heads out of the sand. The whole thing is shameful, $40,000 + for a personal transportation truck ?

 How about buying real estate, or a house, or a post secondaary degree or trade skill - any of which will appreciate and bring back a return on your investment.

This industry is stuck in the past, like a dinosaur in a tar pit. Maybe a tar-baby would be a more appropriate analogy........touch it and your stuck with it and can't get rid of it.

Buy used if you have to buy at all.

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