GM trucks spur incentives by rivals

[FISH]

http://www.freep.com/apps/pbcs.dll/a.../-1/BUSINESS07

April 5, 2006
BY SARAH A. WEBSTER


General Motors Corp.'s new full-size pickup trucks, which are headed for an early release this fall, seem to have the competition running scared -- and heaping thousands of dollars in discounts on their trucks.

The Chevrolet Silverado and GMC Sierra, which will be built off GM's crucial new GMT900 platform, are slated for release in the fall and may be the most awaited, and feared, new vehicles in years.

That's especially true when one considers that pickups are some of the most profitable vehicles that automakers sell and have the added benefit of being more resistant to boosts in gas prices than other profitable trucks, such as SUVs.

Sales of full-size pickups are down 1% this year. That's largely a consequence of customers waiting for GM's new trucks. Sales of GM's full-size trucks are down 9% so far, and the automaker has lost 3.1 percentage points of market share in the segment.

But the competition -- namely the automakers that sell the Dodge Ram, Ford F-Series and Toyota Tundra -- seem to be pulling out all the stops to snag those customers before the spruced-up Silverado and Sierra trucks hit the market and to ensure that their customers stay in their brands.

Incentives for full-size pickups averaged about $3,759 last month, according to the consumer Web site Ewww.Edmunds.com. But Chrysler Group, Ford Motor Co. and Toyota Motor Corp. spent far more than that.

Automakers don't publicly release how much they spend on rebates and other special deals, so several independent firms such as Edmunds.com estimate the amounts with data from dealerships nationwide.

Chrysler led the way on incentives for its Dodge Ram, spending about $5,841 per truck, Edmunds reports.

Toyota followed in second place, spending about $4,984. Ford came in third, spending an average of $4,097 a vehicle.

Jesse Toprak, executive director of industry analysis at Edmunds.com, said the pickup deals have been ramping up, and it's clear that the automakers are trying to get an "early edge on the competition."

Some industry insiders might scoff at the suggestion that pickup buyers might swap brands, because the pickup market, which is dominated by farmers, contractors and boat owners, is renowned for having the most loyal customers of all.

Data from the Power Information Network, a subsidiary of J.D. Power and Associates, suggest that more than half of pickup buyers stick with their preferred brand when they trade in their old trucks.

But with so many vehicles sold in this segment, including nearly 2.5 million last year, even small shifts can be significant and painful for automakers.

Himanshu Patel, an analyst for JP Morgan, said GM or Ford typically lose 2 to 7 points of market share during the first year after the other launches a new pickup truck. That means as many as 170,000 sales, or enough to keep one assembly plant in operation, could be up for grabs in the coming year.

Art Spinella...

Continued:http://www.freep.com/apps/pbcs.dll/a.../-1/BUSINESS07

[01cavalier]

So the competitors are scared? Thats good...

[VibenPontiac]

Sounds like a very reasonable point, and probably true, but Toyota are also coming out tiwth their new Tundra too so that has to play a role also.

Still great to hear the GM is no longer leadng the way in incentives!

[toronado10]

You know the product is great when the competitors are piling cash on the passenger seat before the new product is released. GM has a winner on it's hands.

[69Firebird400]

Chrysler led the way on incentives for its Dodge Ram, spending about $5,841 per truck, Edmunds reports.

Wow! That's a lot of money for a truck that was just freshened this year! I wonder when the next all-new Ram is due. This could be a long few years for DCX if they need to put almost $6,000 on the hood of the Rams to move them off the lots.

[2002z7d]

Toyota's new 3/4 ton Tundra is on par (not the equal but a nice effort on their part) with the current Sierra and Silverado but will get dusted by the new GMT-900's. Toyota had better be scared because they won't be able to freshen their new Tundra to beat or exceed the new GMT-900's. A newer, more capable vehicle will have to be built and that will take Toyota years. It looks like the General will continue to score big points in the pickup segment and maybe it will gain market share? One can only hope!

[VibenPontiac]

Originally Posted by 2002z7d

Toyota's new 3/4 ton Tundra is on par (not the equal but a nice effort on their part) with the current Sierra and Silverado but will get dusted by the new GMT-900's. Toyota had better be scared because they won't be able to freshen their new Tundra to beat or exceed the new GMT-900's. A newer, more capable vehicle will have to be built and that will take Toyota years. It looks like the General will continue to score big points in the pickup segment and maybe it will gain market share? One can only hope!

Care to elaborate...I honestly don't know too much about the new Tundra other than it looks kind of blah and is suppossed to get over 300hp (for the 1st time) and pull 10,000lbs - and I know next to nothing about the 800s or 900s.

[TaHoE]

Toyota NEVER uses incentives...nope, NEVER!

[RWD60]

wait... they're loading up their trucks with incentives NOW... when the GMT-900's won't be on sale for a while yet (when do they actually, officially, go on sale???). that can't be a good policy. everyone who wants your truck will get one now with the cheap pricing, and anyone seriously waiting on a GMT-900 won't care too much about a cheaper F-150. so your sales will still drop when the new GM's come, possibly be even more since all the Ford (Dodge, etc..) guys will have already gotten their cheap truck now, rather than later.

[VGT]

Toyota's new 3/4 ton Tundra is on par (not the equal but a nice effort on their part) with the current Sierra and Silverado

Um.. on par generally means equal. Which is it? On Par or not equal?

[b4z]

They are loading up on incnetives because GM will be loading up on incentives to sell the GMT800s.

[SSrevolution]

When do I get to see the Silverado dammit!?

[kool_zx3]

Originally Posted by b4z

They are loading up on incnetives because GM will be loading up on incentives to sell the GMT800s.

GM has incentives up the wazoo on the trucks now, let alone this fall....... They will be almost giving them away.

[silveradohd2k5]

The only time GM might start giving incentives for the GMT800's is when the GMT 900's hit the showroom floor... Outside that GM will have little incentives... Thats why they lowered the Sticker Prices on all the models so the incentives wont be as high... But what it sounds like is that all the competitors are scared because of the new truck that GM is about to produce... And the funny thing is they havent even revealed it yet so you know GM has a home run with the new truck...

[silveradohd2k5]

Originally Posted by VibenPontiac

Sounds like a very reasonable point, and probably true, but Toyota are also coming out tiwth their new Tundra too so that has to play a role also.

I think Toyota shot themselves in the foot by debuting the new tundra so early... They arent even going to make it for another year... No one has seen the new GMT 900 and by the time they reveal and start making it Toyota still wont have a new truck and it will be long forgotten... and by the time they do start producing it You know Ford will be getting ready to start revamping its truck or in the process...