GM Hikes Incentives on SUVs, Inventory Up

[PontiacJ8]

DETROIT (Reuters) - General Motors Corp. (NYSE:GM - News) raised its cash incentives to consumers on many of its mid-size and full-size sport utility vehicles by $500 to $4,000, a spokeswoman said on Friday.

The automaker also gave its dealers incentives to sell more pickup trucks and SUVs, which have been slow sellers in recent weeks due to rising gas prices, the war in Iraq and the slow growth of new jobs, dealers said.

"It's been a little slower than normal," said one GM dealer, who asked not to be named. "Everybody's just loaded (with inventories of SUVs)."

GM must cut its high inventories of unsold SUVs and pickup trucks, which are running far above typical levels for this time of year, or it could be forced to cut production, which would hurt earnings, said George Magliano, director of automotive industry research at Global Insight.

"Unless they can move this stuff out the door, their production schedules are untenable," he said. "The plant closures for inventory correction have been minimal."

The higher cash rebates involve some of GM's most popular SUVs, including the Chevrolet TrailBlazer, Chevrolet Suburban, GMC Yukon and GMC Yukon XL.

Full Story HERE

[stewacide]

Yukon/Suburban have aged really badly, especially in the interior. It's a wonder they continue to sell as well as they do.

[banzai79]

Yeah, I hate smooth riding, comfortable SUV's too. I spend all my time in the vehicle staring at the dashboard. I could look out the window, but why? When I have a fixed object to stare at constantly it keeps me from getting motion sickness. :P

[LGRpup]

Originally posted by banzai79@May 15 2004, 12:47 AM
Yeah, I hate smooth riding, comfortable SUV's too. I spend all my time in the vehicle staring at the dashboard. I could look out the window, but why? When I have a fixed object to stare at constantly it keeps me from getting motion sickness. :P

:laughbounce:

[BigAls87Z28]

Originally posted by banzai79@May 15 2004, 05:47 AM
Yeah, I hate smooth riding, comfortable SUV's too. I spend all my time in the vehicle staring at the dashboard. I could look out the window, but why? When I have a fixed object to stare at constantly it keeps me from getting motion sickness. :P

:lol: That was classic.

But it is time for a remodling. The trucks and SUV are great and they still can keep up with the best out there. I think its time to bring out the big guns and allow the 6.0 to be able to be an option in the Tahoe and 'Burb along with the 1500 trucks.... all 1500 trucks...especialy the short bed, standard cab kind .

I think its time for DOD to make its big unvailing....anytime your ready GM.
"Hey, are gas prices getting too high for your taste? Do you wish you could consume less, yet still have the power when you need it? Well, guess what! DOD is just what you need on your next SUV or Truck! Come on down to your local Chevy/GMC dealer and ask about the DOD system for your next truck! Your wallet, or purse will thank you."

[banzai79]

Yeah, I was just talking with a friend about it the other day too. I'm not sure what GM is waiting for to do a redesign, since most of their competitors have. DOD and the 6.0 L High Output should be made more common I think. The DOD thing is getting pretty late now that Chrysler has a version of it in the market.

[dindak]

Two problems with these large SUV..

1) High gas prices. If they stay high people will migrate to smaller ones or vans. I think some people are taking a wait and see approach right now.

2) Interiors do need to be upgraded and freshened badly. No they aren't terrible but the competition has raised the bar now and GM needs to get in there.

Things like DOD may help also, GM needs to accellerate the use of these technologies as I suspect gas prices will not come back down to $1.50 a gallon.

[stewacide]

GMs solid rear axel SUVs are as smooth riding and comfortable as the IRS competition? Hardly. Ditto the OHV engines vs. the competitions OHC units. If you're looking for smooth and comfortable GM is the last place you'd go.

[killerrd2]

More reason than ever now to start thinking DoD and Hybrids!!
Toyota is going to pull a BIG one this fall with the introduction of the Lexus RX400H hybrid. 270hp and 36mpg city, 31 mpg highway. (the higher city mileage is due to the two electric motors and Hybrid Synergy Drive with CVT.

I've posted it before - GM get on the wagon or get left behind!

Cheers

[MelvinJ]

Originally posted by stewacide@May 15 2004, 04:10 PM
GMs solid rear axel SUVs are as smooth riding and comfortable as the IRS competition? Hardly. Ditto the OHV engines vs. the competitions OHC units. If you're looking for smooth and comfortable GM is the last place you'd go.

Nissan's OHC V8 is certainly quick, but it's pulling lighter trucks and typically gets lower gas mileage. Toyota's OHC V8 is too small to give big performance, and doesn't get any better mileage than GM's. Dodge's 4.7 OHC V8 is hopelessly underpowered for the Ram' and get's dismal mileage. Ford's OHC V8's have a lot of torque, but pulling bloated, overweight trucks puts them dead last in acceleration, with or without a load, and near the bottom for mileage. They are also near the bottom for refinement.

Dodge's hemi makes good power, but it's not an OHC, and it's mileage isn't very good either.

Car and Driver has noted that GM's truck V8's are almost as refined as Toyota's DOHC, which is derived from their Lexus engine. In the lastest test of SUV's, the Tahoe's numbers weren't as good as other tests, but they made note of the truck only have 90 miles on it when they got it, and long term tests have shown them to get considerably quicker with some break-in mileage, as the other trucks must have had.

GM's V8's are a plus in their light trucks, not a disadvantage.

As far as ride, GM's SUVs always get high marks for ride.

[banzai79]

That argument doesn't really wash. You see, unlike a lot automotive journalists, I acutally ride in cars in real world situations. I've ridden in plenty Suburbans, especially, and I'm sorry, they're as smooth riding and the engine is as smooth as anything else on the road. I hate idiots who just hear "solid axle" or "OHC" and then walk into a vehicle looking for "roughness" because of it.

[dindak]

Has zippo to do with OHCs and axles.

I don't think hybrids are the answer either. From what I hear, if you drive them a bit harder (and that's not uncommon in an SUV), most of the mileage advantage is gone.