Tahoe takes the high road

[paul3230]

Strong sales pump up volume at GM as it strives to regain market share

GENEVA -- The Chevrolet Tahoe, the first in a series of large SUVs that General Motors Corp. is rolling out this year, is off to a strong start and suggests Americans still like their vehicles big -- and they like big American vehicles best of all, GM Vice Chairman Bob Lutz said.

"We're selling them as fast as we can make them," Lutz said of the new Tahoe while at the annual motor show here. "What that's telling us is that the American public hasn't lost its taste for full-size SUVs. We're reasonably confident for the sales of the 900 series."

The launch this year of the Tahoe, Silverado and GMC Sierra pickups, the GMC Yukon SUV and other vehicles built on the GMT 900 platform are crucial to the automaker's efforts to reverse market share declines and stem huge North American losses.

Last year, GM lost $8.6 billion as health care costs surged and a spike in gas prices weakened demand for its aging big SUVs and pickups. Those are among the most lucrative vehicles in GM's lineup.

"When we don't sell full-size pickups, we have a problem," Lutz said.

But the new Tahoe, he said, "is selling extremely well. The turn rates are very, very high."

Industry analysts, including market analysts at GM and Ford Motor Co., predict demand for large SUVs will not recover to the peak levels of close to 1 million sales annually, but still will account for a substantial chunk of sales.

Financial analysts worry GM may be too reliant on sales of big vehicles amid uncertainty about the long-term direction of fuel prices. But Lutz said the automaker cannot generate similar profits on smaller cars.

More at this link: http://www.detnews.com/apps/pbcs.dll...603010380/1148

[69Firebird400]

I hope the Tahoe's demand can continue after the early adopters and people delaying their purchases waiting for the new model have bought theirs. If GM can keep a buzz going with these, they may be onto something great.

[johnny smallblock]

Originally Posted by paul3230

Those are among the most lucrative vehicles in GM's lineup.

But the new Tahoe, he said, "is selling extremely well. The turn rates are very, very high."

Industry analysts, including market analysts at GM and Ford Motor Co., predict demand for large SUVs will not recover to the peak levels of close to 1 million sales annually, but still will account for a substantial chunk of sales.

Financial analysts worry GM may be too reliant on sales of big vehicles amid uncertainty about the long-term direction of fuel prices. But Lutz said the automaker cannot generate similar profits on smaller cars.

Let's see, the 900s are high margin in demand vehicles that, although they won't reach their peak sales, they will remain a large chuck of the market, but GM is in financial trouble because they sell them.

[asim]

GM needs to paste the image that the Tahoe gets better gas milage than the Japanese counterparts in their advertising...

[give_it_all_]

I agree with that Asim. Anyone know how much they make on each GMT-900 sold?

[tom3]

Most advertisements, articles, and road tests I see really push the gas mileage of the new Tahoes, and the variable displacement 5.3 V8. Good points there, but when I look at the new Tahoe and I see those $2 side moldings, and no trim at all on the front and back ends, the machine really looks plain to me. A $50k (loaded) vehicle should have some style to it I think. Seems to selling initially well though, so what do I know. Sure like to have that powertrain in my old Camaro, 325hp and fuel economy to boot.

[JohnnyD]

Give me a break about high demand. They only sold 6000 something Tahoes last month. Dealerships everywhere have plenty on the lots. Dealers are already discounting them $3000-4000.

It's not just peoples changing attitudes about SUV's either. The 06's are still selling fairly strong as the price is right. Non market leading upgrades over the old model such as a lack of 6 speed, fold flat rear seats and higher tow ratings make many people think maybe I'll just wait a year or two more when some of these short comings might be addressed. Those along with a too high price (unless big discounts are given) are really going to kill potential needed sales of a great looking truck.

[plane]

Originally Posted by JohnnyD

Give me a break about high demand. They only sold 6000 something Tahoes last month. Dealerships everywhere have plenty on the lots. Dealers are already discounting them $3000-4000.

It's not just peoples changing attitudes about SUV's either. The 06's are still selling fairly strong as the price is right. Non market leading upgrades over the old model such as a lack of 6 speed, fold flat rear seats and higher tow ratings make many people think maybe I'll just wait a year or two more when some of these short comings might be addressed. Those along with a too high price (unless big discounts are given) are really going to kill potential needed sales of a great looking truck.

Yeah. Most likely ppl will go for the prius instead.

[moman]

Originally Posted by JohnnyD

Give me a break about high demand. They only sold 6000 something Tahoes last month. Dealerships everywhere have plenty on the lots. Dealers are already discounting them $3000-4000.

It's not just peoples changing attitudes about SUV's either. The 06's are still selling fairly strong as the price is right. Non market leading upgrades over the old model such as a lack of 6 speed, fold flat rear seats and higher tow ratings make many people think maybe I'll just wait a year or two more when some of these short comings might be addressed. Those along with a too high price (unless big discounts are given) are really going to kill potential needed sales of a great looking truck.

Agreed. With the failed terrorist attack on Saudi Aramco last Friday (remember hearing about that?) I bet GM execs were pissing their pants and thanking the heavens that it failed.

One more shocking bout with over $3/gal gas will kill demand for pickups and SUVs for the forseeable future (5-10 years).

With the reliance GM is placing on the GMT-900 series I'm inclined to believe it will cause GM to fail as well.

Secondly, I don't know how they are selling so fast when every dealer lot is full of them.

[marckessler]

Originally Posted by moman

Agreed. With the failed terrorist attack on Saudi Aramco last Friday (remember hearing about that?) I bet GM execs were pissing their pants and thanking the heavens that it failed.

One more shocking bout with over $3/gal gas will kill demand for pickups and SUVs for the forseeable future (5-10 years).

With the reliance GM is placing on the GMT-900 series I'm inclined to believe it will cause GM to fail as well.

Secondly, I don't know how they are selling so fast when every dealer lot is full of them.

No matter what gas will cost I still can't pull a horse trailer with a Prius! (Yet alone fit in one)

[moman]

Originally Posted by marckessler

No matter what gas will cost I still can't pull a horse trailer with a Prius! (Yet alone fit in one)

The question is can you afford a Tahoe (or to pull a horse trailer) and maintain your standard of living if gas is $5/gallon?

[marckessler]

Originally Posted by moman

The question is can you afford a Tahoe (or to pull a horse trailer) and maintain your standard of living if gas is $5/gallon?

Yes, with a little adjustment.

[Chris97k1500]

The people that won't be able to afford large SUV's will be the ones that make less $$ in a year than the cost of their SUV. Basically those that make less than 40-45K$ a year total family income, which were a major group of people buying large SUV's up until these higher gas prices. Those that are buying large SUV's, for the look/social status and struggling to make ends meet are going to have trouble. At 5$ a gal. they are going to have a major income to cost of living problem. I will be buying a new GM Sub/Yukon XL size SUV later this year, not because they are new, but because I need a vehicle of this size. There will always be a need for large vehicles, in my case, I don't buy a car for mileage, I really don't care about mileage, only if I like the vehicle or not. I'm sure I'm not the majority of buyers, but I also know that I'm lucky in that I have a very well paying profession, and can overlook things like mpg. I think GM is making a great decision, IF, gas prices stay less than 3$ a gallon until all the 900's are out and on the market for a year or so, basically until winter of '07. IF prices stay less than 3$ a gallon, it will allow GM to sell the big $$ makers, getting GM in a better financial situation in order for GM to but $$ into the RWD platforms, X-over SUV's, hybrid cars and updated small car lineups. IF GM could get the Camaro out sometime in '08, GM could have 3 or 4 years in a row with profits from '06-'09. GM seems to always be reactive to the market instead of proactive, it finally caught up to GM, and now they need to get ahead of the market in R&D. The 900's are the make or break cash cow for GM. I don't think they will fail from a product standpoint, but gas prices could be what does the 900's in. Too bad there aren't more buyers in the market like me, I'll be getting a new Sub/Yukon XL and 2500HD over the next year. Can't wait!! Chris

[TahoeMikeZ71]

I love this truck, I was in two of them yesterday at the auto show, and was staring at a Tahoe and Escalade moving around slowly on display.

[Dano702]

The people who feel the need to Bash the 900 , might want to go drive one ,so you don't sound so stupid . My parents have almost 3000 miles on their LTZ , I am still in shock every time i ride in it . The 900 will destroy ALL the competition , just wait and see. I cant say enough about the new Tahoe . My parents have been getting around 16 MPG when they drive it in 4HI . 16-17 in 4 HI!!! I cant wait until the snow melts so they get to drive it in 2 HI , they are VERY Happy with the 50 they spent . Worth every penny !

Home Run for GM !

The 900 is everywhere in Vegas Traffic , seems to be selling very well.