Embarrassed? GM Lets Loose On The Ram Pickup Truck. "A hollow chocolate Easter bunny"

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Thread: Embarrassed? GM Lets Loose On The Ram Pickup Truck. "A hollow chocolate Easter bunny"

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    Embarrassed? GM Lets Loose On The Ram Pickup Truck. "A hollow chocolate Easter bunny"

    Detroit Free Press
    April 17, 2019



    Not everyone is happy that the Ram 1500 took the No. 2 pickup sales slot for the first three months of the year.

    General Motors, in fact, is crying foul.

    The Chevy Silverado lost out in the bruising sales battle in the competitive full-size pickup race for second place in the first quarter of 2019, and General Motors is irked. Ford’s F-150 remains well entrenched in first place.

    The skirmish is the latest example of the bad blood on display in the ongoing Truck Wars, which are pitting the Detroit Three against one another in an automotive world version of "Mortal Kombat." Ram, which had been the No. 3 truck brand, had sales of 120,026 trucks in the first quarter compared with 114,313 Silverados. Ford sold 214,611 F-Series trucks.

    “The Truck Wars is kind of a no-holds-barred landscape,” observed Jeremy Acevedo, manager of industry analysis for Edmunds.

    General Motors spokesman Jim Cain told the Free Press that “the Ram pickup’s first-quarter sales victory over Silverado amounted to a hollow chocolate Easter bunny because FCA has been pulling out all stops to win sales.”

    To Acevedo, that’s the point, and he said the trash-talking is likely to continue.

    “The gauntlet’s been thrown down here, and Chevy will make some moves to get back in the second spot. I think this is just getting started,” Acevedo said.

    Here are some of FCA's sins, according to Cain:

    >> Paying dealers bonuses of $8,500 to put Ram Classics into courtesy transportation fleets (the sales count as “retail” deliveries but ultimately get disposed of as used cars).

    >> Offering stacked discounts on Ram Classic topping $18,000 in some markets, such as Texas.

    >> Aggressively pushing short-term, low-mileage leases for employees/families in metro Detroit.

    Cain said the tactics have stalled the launch of the new Ram 1500, which is being built at Sterling Heights Assembly at the same time the Classic is being built at Warren.

    Acevedo, the Edmunds analyst, however, noted that FCA has not limited its incentives to the Ram Classic, and is applying them to the new version as well.

    “It’s aggressive. It’s kind of unprecedented. You usually don’t see new product hitting the market with these incentives right away,” Acevedo said.

    As for the courtesy fleet issue, FCA did put 553 Ram 1500s in its dealer customer loaner courtesy fleet in February, which works out to about 1.4% of the 39,950 that were sold that month. March numbers were not available.

    Despite the verbal jabs from the competition, FCA played it straight with its comments on the dustup.

    "FCA is committed to providing competitive products at competitive prices in the marketplace. Our incentives constantly change, and vehicle prices can vary by dealership,” according to a statement from Fiat Chrysler.

    Michelle Krebs, executive analyst with Cox Automotive’s Autotrader, said GM and FCA are simply engaging in different strategies. GM would love to be in second place in the segment, but the company is focused on profits.

    “The fact of the matter is Ram beat Chevy Silverado, period. That’s part of their strategy. GM is focused on profits and has been very restrained on incentives. Ram has been aggressive on incentives. And why not? There’s good money to be made,” Krebs said, noting that the auto companies engage in various tactics depending on their ultimate strategies.

    “General Motors has used the same tricks in the past. They’ve all done this at one time or another,” she said.

    Pickups are the “bread and utter” for the Detroit Three, and the segment has always been competitive, Krebs said.

    “We’ll see how it comes out in wash when quarterly profits come in,” Krebs said.












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    Re: Embarrassed? GM Lets Loose On The Ram Pickup Truck. "A hollow chocolate Easter bu

    General Motors spokesman Jim Cain told the Free Press that “the Ram pickup’s first-quarter sales victory over Silverado amounted to a hollow chocolate Easter bunny because FCA has been pulling out all stops to win sales.”
    Well, that's a relief!!

    I thought the Silverado performance had something to do with the redesign of the product.

    I feel much better now.









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    Re: Embarrassed? GM Lets Loose On The Ram Pickup Truck. "A hollow chocolate Easter bu

    Incentives on the new GM trucks locally is pretty thin.

    New RAM has $10K on the hood.

    GM needs to compete.

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    Re: Embarrassed? GM Lets Loose On The Ram Pickup Truck. "A hollow chocolate Easter bu

    General Motors spokesman Jim Cain told the Free Press that “the Ram pickup’s first-quarter sales victory over Silverado amounted to a hollow chocolate Easter bunny because FCA has been pulling out all stops to win sales.”
    Cain sounds very butt-hurt. GM doesn't get to dictate the rules. Hope he gets some sour eggs for Easter.
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    Re: Embarrassed? GM Lets Loose On The Ram Pickup Truck. "A hollow chocolate Easter bu

    Lets see. A far superior, nicer looking, cheaper sticker price product is beating an ugly, overpriced cheap materials looking product?

    Wow. Never thought that would be possible..........

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    Re: Embarrassed? GM Lets Loose On The Ram Pickup Truck. "A hollow chocolate Easter bu

    Regardless of how they got there this year, it's been a trend of RAM slowly catching Chevrolet in truck sales. Will it continue and eventually outsell the combined Chevrolet and GMC trucks?

    The fact that RAM has done so well to start the year should make GM sit up and take notice.
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    Re: Embarrassed? GM Lets Loose On The Ram Pickup Truck. "A hollow chocolate Easter bu

    Quote Originally Posted by kool1 View Post
    Incentives on the new GM trucks locally is pretty thin.

    New RAM has $10K on the hood.

    GM needs to compete.
    GM is competing, but playing a different game. As I mentioned in other threads, and as indicated in the OP, GM is focused on profitability with the T1XX trucks. They're accomplishing this by going the cheap route with engineering and materials selection for these trucks, emphasizing existing GM truck owners in its marketing, and being restrained with sales incentives.

    By contrast, increased market share and product excellence are the key elements of FCA's strategy with Ram Trucks. They are actively courting "conquest" customers who own vehicles from other brands.
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    Re: Embarrassed? GM Lets Loose On The Ram Pickup Truck. "A hollow chocolate Easter bu

    Ram Canada is advertising 25% off MSRP of classic and 10k off all new. If I was shopping for a truck, I’d definitely be interested
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    Re: Embarrassed? GM Lets Loose On The Ram Pickup Truck. "A hollow chocolate Easter bu

    He;s not wrong though. RAM trucks are a joke all those that bought one thinking it was better will come crawling back after their transmission eats it self. Also I wish GM would just combine the sales of the Silverado and Sierra already those are the true numbers to beat RAM isn't even an after thought.

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    Re: Embarrassed? GM Lets Loose On The Ram Pickup Truck. "A hollow chocolate Easter bu

    Quote Originally Posted by Greg.Botts View Post
    He;s not wrong though. RAM trucks are a joke all those that bought one thinking it was better will come crawling back after their transmission eats it self. Also I wish GM would just combine the sales of the Silverado and Sierra already those are the true numbers to beat RAM isn't even an after thought.
    trolling again, eh?
    Google the ZF 8 speed, you will learn a new thing today. Must be better than the 6 GM offers on a brand new 2019 truck.

    Nobody is stopping GM to match the prices of the Ram or play by the exact same rules.

    Nonetheless, this will be a heavy thread.

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    Re: Embarrassed? GM Lets Loose On The Ram Pickup Truck. "A hollow chocolate Easter bu

    Sales numbers are meaningless really. GM is winning all the way to the bank. Didn't GM see an ATP increase of $8k on the new trucks last quarter? That is massive.

    And I really think that people who think the new trucks are ugly have not seen one. I admit that they look questionable in all the GM photos, but I've been seeing several on the streets in my area and they all look very sharp. I'm kind of leaning toward the Silverado being nicer looking than the Sierra this time around.

    I wonder how long Chevy can tolerate being second to the Ram in sales numbers. Will GM hold their focus on profit or chase sales numbers? My guess is that they'll keep focused on profits until inventory is full and then see how the numbers look. I bet they start playing a few more incentive games at that point. But I'd be surprised if they take it to the extremes that Ram has.
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    Re: Embarrassed? GM Lets Loose On The Ram Pickup Truck. "A hollow chocolate Easter bu

    Quote Originally Posted by canadian.bacon View Post
    Nobody is stopping GM to match the prices of the Ram or play by the exact same rules.
    GM's strategy of maximizing profitability on T1XX pickup truck sales should be fine in the short term. There are plenty of loyal GM truck owners for whom the new Silverado and Sierra are "good enough".

    Quote Originally Posted by TruckMan View Post
    Will GM hold their focus on profit or chase sales numbers?
    As long as Mary Barra is at the helm, profitability (at least in the short term) will always be GM's primary focus.
    Last edited by gkr778; 04-17-2019 at 09:03 AM.
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    Re: Embarrassed? GM Lets Loose On The Ram Pickup Truck. "A hollow chocolate Easter bu

    I see at least 8-10 NEW Rams for every 1 Silverado here in NJ. In fact, I hardly see the new Silverado at all.

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    Re: Embarrassed? GM Lets Loose On The Ram Pickup Truck. "A hollow chocolate Easter bu

    The interesting point here is how the manufactures are catering to two different audiences. FCA is targeting consumers by offering very aggressive pricing on their new trucks, whereas GM is targeting Wall Street by looking down their nose at what FCA is doing while touting their ATP and margins. Both strategies are fine in a bubble, but the long-term play I think favors FCA in that they are winning a new customer base. If the dealership experience improves as well, FCA could start stealing sales in other markets as a result (not that Jeep needs any help).

    If I were buying today, it would be a RAM. Since I don't own stock in any of these companies (maybe my 401K does...?), I care about value for my dollar over all else, and RAM is winning that battle.
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    Re: Embarrassed? GM Lets Loose On The Ram Pickup Truck. "A hollow chocolate Easter bu

    As much as I am a Silverado/Sierra booster as I consider them superior machines to their competitors not just the new RAM, Jim Cain and his superiors need to STFU and buckle down selling the 1500 series trucks and make serious improvements to the interior for upcoming trucks.

    Crying about being blindsided by RAM and getting bent isnt going to cut it. GM need to do to the GMC Sierra like what they did to their GMC CUVs, give it its own interior styling and appointments for increased brand differentiation and loyalty. Extol the various virtues of the Silverado as a powerful better built truck, even push the dated interior as a plus of sorts to traditional truck buyers for the time being, target longtime truck owners who have older vehicles with deals and incentives to move up.

    Yes its a wake up call to GM and further proof why we need FCA as a DOMESTIC COMPETITOR to kick GM in the ass now and again to make them get busy.
    Last edited by Evo69; 04-17-2019 at 10:00 AM.
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