Wagoner: GMT900 Dealer Demand Has "Exceeded Expectations"

[Perian]

Source: wsj.com

HOUSTON -- The top executive at General Motors Corp. said that demand from dealers for the auto maker's new slate of full-size vehicles has exceeded expectations.

Chief Executive Officer Rick Wagoner, speaking at the Houston Auto Show, touted the fuel efficiency of GM's large vehicles and said they represent the best full-size utilities the company has ever brought to market. GM, like its main rival Ford Motor Co., has been steadily losing market share in the U.S. to foreign competitors. Many industry experts say an overreliance on sport-utility vehicles has hurt sales by Detroit's Big Two.

GM is pinning much of its recovery hopes on the launch this year of its GMT 900 line of full-size trucks and SUVs. The company has said it expects new models to account for nearly 30% of overall sales volume in 2006.

Mr. Wagoner said it's too early to predict how well the new large utility vehicles would sell but characterized the market for such vehicles as robust.

Article continues at link.

[Perian]

I think it is important to note here that Mr. Wagoner is stating the above based on demand from DEALERS.

It seems we are reaching for any PR position possible.

Let's hope those DEALERS sell a few to the PUBLIC!

[give_it_all_]

Yeah, I can't wait to see the numbers of how many they actually put in the customer's hands.

[Angry Dad]

I'll say what everybody knows, GM's 900s kick the daylights out of anything else in their class. That clearly includes Sequoias, Armadas and the current Fords.

In fact I'll say something else that is obvious, the Armada is a disaster, the Sequoia has earned a reputation of being shoddily built and questionable value.

Question is will Toyota get their third generation full size truck right. The T100 was a bomb, Tundra is a bloated Tacoma, and Nissan's Titan is no world beater. Can GM's new truck deliver a knock out? No matter how much Kool-Aid the press gets fed by the masters of deceit, Toyota has something to prove this time.

Now if GM can transfer that to other markets besides the performance class where the Corvette is so far above the rest, GM will cure it's own financial problems.

[tuxmelvin]

I'll say what everybody knows, GM's 900s kick the daylights out of anything else in their class. That clearly includes Sequoias, Armadas and the current Fords.

In fact I'll say something else that is obvious, the Armada is a disaster, the Sequoia has earned a reputation of being shoddily built and questionable value.

Question is will Toyota get their third generation full size truck right. The T100 was a bomb, Tundra is a bloated Tacoma, and Nissan's Titan is no world beater. Can GM's new truck deliver a knock out? No matter how much Kool-Aid the press gets fed by the masters of deceit, Toyota has something to prove this time.

Now if GM can transfer that to other markets besides the performance class where the Corvette is so far above the rest, GM will cure it's own financial problems.

GM's financial problems start with poor products. But they don't end there. They'll need to do some serious haggling with the unions if they want to build quality products without losing money hand over foot.

As for Toyota, if I had to buy a truck right now, it would be a Toyota Tacoma hands down. That new Tundra looks like one to beat... I'll be waiting to see some specs and more photos.

[Leatherneck]

Originally Posted by kool_zx3

If gas goes up though (which it will), the sales will go in the toilet again and all we be t3h suck

Hopefully not.

[jbartley]

All GM has to do with these trucks is not yield market share, especially with the Tahoe/Yukon. If they can do that, then GM has succeeded

[cmutt]

I think it is important to note here that Mr. Wagoner is stating the above based on demand from DEALERS.

While that is true, it's also interesting to note that:
1) Dealers have to pay interest on every vehicle on their lot. They aren't going to load up on these unless they think they can move them fast. A lending institution is fronting the cash for these vehicles & the dealer just pays the interest on the unsold vehicles every month. This is why a buyer thinking that "if the dealer only makes a $1000 profit on a "$30,000 vehicle, they've made a good deal" is a faulty perception. The dealer didn't pay $30,000. They'll pay roughly $1/day for each day that vehicle sits on the lot. An "old" vehicle is one that is >60 days. Dealers will be more likely to deal on a >90 and especially on a >120 day old vehicle. So at $1/day, ask yourself "Is a $1000 profit enough on a $120 investment"?

2) GM knows that demand for these vehicles will be high - so they aren't just "shipping them to everyone". You want one? You need to take on a couple of slower moving products as well (think: SSR -- which can take 6 months--if not longer to sell).

So, all things considered, dealer demand being high is still an exceptionally good thing to hear.

[Pancheetoh]

I am not too sure about the new Tahoes making into customers hands... most central Texas dealers already selling them for 3k under MSRP.... look for yourselves (www.gunnauto.com, they do no haggle pricing, inventory posted on their website)... other dealers doing the same (or even better)... everyone has pretty much anything available for immediate delivery

Dealers were dying to get the new Tahoes... the old ones just weren't moving at all... hopefully it is true consumer demand what is showing up on Wagoner's radar... instead of dealer eagerness/optimism/desperation... we should see in a couple of months

[FordMan]

Originally Posted by Angry Dad

I'll say what everybody knows, GM's 900s kick the daylights out of anything else in their class. That clearly includes Sequoias, Armadas and the current Fords.

In fact I'll say something else that is obvious, the Armada is a disaster, the Sequoia has earned a reputation of being shoddily built and questionable value.

Question is will Toyota get their third generation full size truck right. The T100 was a bomb, Tundra is a bloated Tacoma, and Nissan's Titan is no world beater. Can GM's new truck deliver a knock out? No matter how much Kool-Aid the press gets fed by the masters of deceit, Toyota has something to prove this time.

Now if GM can transfer that to other markets besides the performance class where the Corvette is so far above the rest, GM will cure it's own financial problems.

At my local Toyota dealer you can get $3,000-$5,000 off MSRP.

[espo19047]

Originally Posted by cmutt

While that is true, it's also interesting to note that:
1) Dealers have to pay interest on every vehicle on their lot. They aren't going to load up on these unless they think they can move them fast. A lending institution is fronting the cash for these vehicles & the dealer just pays the interest on the unsold vehicles every month. This is why a buyer thinking that "if the dealer only makes a $1000 profit on a "$30,000 vehicle, they've made a good deal" is a faulty perception. The dealer didn't pay $30,000. They'll pay roughly $1/day for each day that vehicle sits on the lot. An "old" vehicle is one that is >60 days. Dealers will be more likely to deal on a >90 and especially on a >120 day old vehicle. So at $1/day, ask yourself "Is a $1000 profit enough on a $120 investment"?

2) GM knows that demand for these vehicles will be high - so they aren't just "shipping them to everyone". You want one? You need to take on a couple of slower moving products as well (think: SSR -- which can take 6 months--if not longer to sell).

So, all things considered, dealer demand being high is still an exceptionally good thing to hear.

Where do you come up with these facts? There are salesman on this site that know this is not how it works. Why do you state your opinions as fact?
Do you believe your on BS?

[david1234]

Originally Posted by jbartley

All GM has to do with these trucks is not yield market share, especially with the Tahoe/Yukon. If they can do that, then GM has succeeded

Gm better be praying that Toyota misses with the new Tundra/Sequoia. The gmt900 has not broken any (or enough) new ground. The 320hp in the Tahoe is class leading for now, but torque (a more true measurement of power) is lacking, and high in the RPM's. Rumor I am hearing is the new Tundra will be 360 hp 360lb ft with a 5.5l dohc. 6 speed transmissions "Standard" This along with a larger dimensions scares me as a GM fan. I want so badly for GM to give me a reason to buy the new Escalade, However I am through spending my hard earned money out of brand loyalty. Build the best vehicle for the money and I will buy it. I feel like GM is going just cheap enough on their cars to leave room to discount prices, when if they would just put in the extra details they would sell themselves. I am a homebuilder in the Seattle area of WA (Go Seahawks...), and the homes we build have a few details that you cannot get from any other builder in our price point. In 16 years I have never had to advertise, or spend money marketing in any way. We are typically at the very top of the market price wise and rarely negotiate on the price. I believe that the auto business is the same... Toyota is not giving 15k off of a Lexus to get it sold... Just build the best, and they will line up for it... Another thing that GM should do is straighten out their dealers. I had a 06 z06 ordered from a local dealer at MSRP. When it arrived last month the dealer demanded 20k over... Needless to say, I am pissed. I am personally responsible for 20+ sales a year at that dealership. I get a $100 referal fee when my friends buy there, last year I got $2400. Most of the vehicles were vans and duramax equipped trucks. Oh well... Gotta find a new dealer...

[JohnnyD]

I think GM trying to price a fully loaded Tahoe at $52,000 has taken a lot of wind out of this products sails. They should have made sure a loaded Tahoe was about $43-45000 (like you could pick them up for in 04-05) and then everyone would be talking positive.

[01cavalier]

I just got back from the Portland autoshow, and took some good long looks at the GMT 900 models. Definitely impressive and for sure a lot better than anything else that I saw at the show. The Solstice and Sky were really stealing attention though.

[56 Starchief]

Originally Posted by david1234

Gm better be praying that Toyota misses with the new Tundra/Sequoia. The gmt900 has not broken any (or enough) new ground. The 320hp in the Tahoe is class leading for now, but torque (a more true measurement of power) is lacking, and high in the RPM's. Rumor I am hearing is the new Tundra will be 360 hp 360lb ft with a 5.5l dohc. 6 speed transmissions "Standard" This along with a larger dimensions scares me as a GM fan. I want so badly for GM to give me a reason to buy the new Escalade, However I am through spending my hard earned money out of brand loyalty. Build the best vehicle for the money and I will buy it. I feel like GM is going just cheap enough on their cars to leave room to discount prices, when if they would just put in the extra details they would sell themselves. I am a homebuilder in the Seattle area of WA (Go Seahawks...), and the homes we build have a few details that you cannot get from any other builder in our price point. In 16 years I have never had to advertise, or spend money marketing in any way. We are typically at the very top of the market price wise and rarely negotiate on the price. I believe that the auto business is the same... Toyota is not giving 15k off of a Lexus to get it sold... Just build the best, and they will line up for it... Another thing that GM should do is straighten out their dealers. I had a 06 z06 ordered from a local dealer at MSRP. When it arrived last month the dealer demanded 20k over... Needless to say, I am pissed. I am personally responsible for 20+ sales a year at that dealership. I get a $100 referal fee when my friends buy there, last year I got $2400. Most of the vehicles were vans and duramax equipped trucks. Oh well... Gotta find a new dealer...

theyre having no problem moving cadillacs--save the old escalade recently but that was because the new and VASTLY improved new one is here.

are you implying you think the new escalade is not that great? most people think it is, GM fan or not, im curious to see another opinion (seriously)