Key Dealer says GM Needs to Step up Incentives on Trucks

[ByTheLake]

How about this: GM reduces production of trucks to align with reduced market demand.

Let's focus on getting GM profitable again and not simply push volume to maintain market share.

Why reduce profit margins even further with cash on the hood?

[BPGTim]

Originally Posted by doh

I am confused. Isn't the Americain Axle strike hurting supply of trucks?

This is a big problem. Because current inventories a large we want huge incentives???? THe only thing that supply hurts is special orders. This just means that dealers need people to "SELL" cars and trucks instead of being the common order takers that they have become.

I am not saying that the consumer shouldn't get what they want but most people do not know what they need or for that matter what they really want. This is confirmed by the rapid trade cycle that most have (36 months or less). People get bored quick because they don't get what the want. So why special order the wrong car when you can sell what you have instock or something you can swap from another dealer?
You buy what you find at the mall...........is a car store that different?? You buy the best suited house you can find.......Isn't the car purchase a little less permanent??

The problem is not really a problem......it is just a bunch of pissin' and moanin'

[LONGHORN]

Originally Posted by Uzzy

I still can't figure out why Naughty by Nature is down with the Ontario Provincial Police.

GOOD ONE!!!!!!

[TruckMan]

Originally Posted by KingElvis

Look at the truckers who are convoying past the capitol and protesting by holding up traffic. They have trucks and are very worried about fuel prices.

If the truck is used for commercial purposes, gas mileage is a criterion that belongs near the top.

That's true. I didn't consider shipping & transportation costs associated with businesses. I was thinking more along the lines of people who buy trucks for personal use, not business use.

[1gkek]

I've got an '06 2500HD duramax to pull a big boat around with. I traded in a 2005 Yukon XL Denali (6.0L gas) on it. With the Denali, I'd get 13.3 mpg combined (via the DIC) and the switch to the Diesel pickup upgraded me to 16.3mpg. When Diesel hit $3/gl, I slowed down to the speed limit and now I get 18.1 mpg combined (again, via the DIC).

That's something like a 35% increase in fuel economy around town by switching to Diesel and slowing down. I'll take it.

I'd love to upgrade, but I'm hearing people grumble about the the new Diesels with the particulate filters getting much worse mileage. Anybody with first hand experience on those? I love nearly everything about the 900's and it sounds like GM is going to start swinging some good deals around.

We'll see.

[tgagneguam]

Originally Posted by TruckMan

I never advocated such a thing - though it has crossed my mind once or twice. I'll be in the market again soon - we're expecting twins in October! Should be a great time to pick up a new SUV.

If it hasn't already been said, congratulations, TruckMan. How exciting for you and your presumably better half! Double the pleasure for your family.

Originally Posted by ByTheLake

How about this: GM reduces production of trucks to align with reduced market demand.

Let's focus on getting GM profitable again and not simply push volume to maintain market share.

Why reduce profit margins even further with cash on the hood?

Sounds like a long-term outlook there, ByTheLake. I second the motion.

Put another way, GM lost $3.3 billion in Q1, so let's throw profit-eroding incentives on the hood of these monsters and go for broke in Q2/H1!

[gardnet1]

Maybe GM is holding off until the axle strike is over before layin down some ram like incentives.

A few years back our local dealership chain in Colorado (Phil Long Ford Saturn, imports) issued 6 months of fuel based on current price via a debit card for all new sales and leases. That seem to work pretty good. It would cost alot more now but consumers see this as a hedge against higher gas prices.

Other than that I would consider a program for paying $1-2,000 over KBB price as a way to help out those with upside down equity in their vehicles. Or the buy a full sized truck/SUV at/near MSRP and get an Aveo/Focus thrown in for free.

[EldoFan]

Originally Posted by member12

GM needs to cut production. The last thing they need is selling trucks to people who can't afford them...and they don't want to hurt their solid resale value in this area.

And GM dealers need push for more of the popular malibu models in exchange for taking more XFE Cobalts, full sized trucks, or Aveos.

If they are going to offer deals, then offer deals on the work truck models (if they must keep the factory running). Moving metal to the private sector is going be slow- and GM must cut Tahoe, Suburban, and Silverado (and the GMC counterparts). Make deals with municipalies, oil services companies, constrution companies, and utility providers on the Trailblazers, Suburbans, and Silverados, but cut the production of trucks to the private buyer.

Unions = 1/2 of the problem
GM Dealers = Other 1/2......when are they going to wake up and realize their days of milking the market are over?

[Bggriffi]

Originally Posted by gardnet1

Other than that I would consider a program for paying $1-2,000 over KBB price as a way to help out those with upside down equity in their vehicles. Or the buy a full sized truck/SUV at/near MSRP and get an Aveo/Focus thrown in for free.

So the Aveo is like the prize in the bottom of the cereal box?

[Uzzy]

Originally Posted by Bggriffi

So the Aveo is like the prize in the bottom of the cereal box?

I think I'd rather have a decoder ring.

[gardnet1]

Originally Posted by Bggriffi

So the Aveo is like the prize in the bottom of the cereal box?

It's kind of strange but it works in a few ways. First it attracts people to the showroom. Even if they aren't interested in buying two vehicles. Getting people in the showroom is the most important step. It becomes a conversation topic so it is almost like viral advertising. Second, some people actually do go for the deal. I suppose it would be good if you had a teen in the house or the wife needed a new ride too.

The upside down consumers are who I would go after first. We have a dealership that is offering to triple tax refunds on down payments. Either that or pay $$$ over kelly blue book because many consumers have refinanced the upside down portion into their car loans two or more times in a row so they are upside down by more than $5,000 and they need incentive to buy again. Sometimes they are upside down by more than $15,000 with an 8-year loan...They are lost causes for now.

[dmaxpwr]

Originally Posted by 1gkek

I'd love to upgrade, but I'm hearing people grumble about the the new Diesels with the particulate filters getting much worse mileage. Anybody with first hand experience on those? I love nearly everything about the 900's

Awful, I went from an '06 Crew cab to '07.5 Ext cab...16-18 highway now I get 13-15 highway...If I go like 60 I can get it up to 18.

But honestly, the upgrade in what the truck is, is worth the less fuel economy in my opinion. Wayyy more comfy (both trucks were optioned out) and at the very least, better for the environment!

[NfamousZ24]

Originally Posted by Uzzy

They are. Productionis down due to the American Axle strike and they just announced over 3000 lay-offs starting in mid-July. Oshawa, among others, will be losing a shift.

They don't push those, because they don't make much on them. GM doesn't make much money on them either, though.

From what I've heard the OPP (Ontario Provincial Police) will be switching much of their fleet of patrol vehciles from the outgoing Crown Victorias to Chevy Tahoes. I've seen a few black and white Tahoes already and that paint scheme on those trucks looks badass! Windsor Police has also bought a few Tahoes recently I noticed.

It's not likely they'll push the Trialblazer since it's going out of production.

That is even more reason why to push the Trailblazer / Envoy. If GM is completely done with the Trailblazer and Envoy. They paid off the R&D for that line LOOOONG time ago. They could offer $10k off and still make a profit on them. lolz

[GMCdriver]

Originally Posted by ByTheLake

How about this: GM reduces production of trucks to align with reduced market demand.

Let's focus on getting GM profitable again and not simply push volume to maintain market share.

Why reduce profit margins even further with cash on the hood?

The old labor deals didn't really allow for much room in this area because even if the demand fell out on a product, the workers who built it needed to continue to recieve pay. If you are going to pay them for a day, you might as well have them put a few vehicles together and see if you can at least break even by dropping some cash on the hood.

This is a chance to see if the new contract will give GM the flexibility needed to put the right product out the door when the market shifts.

Of course, even if the new contract has given GM ability to curb production, there will still be huge fallout in the media for putting all those workers out on the street.

It's GM no matter what they do, someone will hate it.

[Slowrider5]

Forget incentives, the MSRP of trucks/SUV's need to be re-aligned with the market as production is. Demand simply isn't there anymore, so much so that cutting supply a little can't keep prices where they are. Same thing as the housing market. Bottom line prices have to come down, gimmicky sales tactics aren't going to work. There's so much profit built into these things it's ridiculous. A few grand off isn't anything when you consider GM is making $10-$15K profit on models (non work truck).