Getting Serious: Ram 1500 Sales Squeeze Chevy Silverado

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Thread: Getting Serious: Ram 1500 Sales Squeeze Chevy Silverado

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    Getting Serious: Ram 1500 Sales Squeeze Chevy Silverado

    Detroit Free Press
    April 2, 2019



    As the No. 2 bestselling truck in America, the Chevrolet Silverado is clinging to its shrinking sales lead over Ram 1500 in a high-stakes fight that few anticipated.

    This is not just about prestige and tradition. This is about money. Trucks generate crazy profits for automobile companies.

    “Something better change,” said Karl Brauer, executive editor of Kelley Blue Book. “I think people would be surprised to see the market share split between Ram and Silverado. They’ve already moved more than most people would’ve ever believed. That’s not a good trend line for Chevrolet.”

    He continued, “Ford F-Series has managed to stay stable and Ram has managed to climb mostly at the expense of Chevy.”

    Fiat Chrysler's Ram closed the gap dramatically on Silverado from 2017 to 2018, according to Kelley Blue Book:

    Ram sold 22% of pickups purchased, climbing to 536,980 from 500,723.
    Chevy sold 24% of pickups purchased, holding steady at 585,581 compared with 585,864.

    The disappeared in the first quarter of 2019, with Ram selling 120,026 trucks versus 114,313 Silverados sold during the period, according to company filings.

    Ali Reda, one of the top selling car salesmen in the United States, says he feels the pain every week at Les Stanford Chevrolet Cadillac in Dearborn.

    “It’s a regular thing,” he told the Free Press. “We struggle with this on a daily basis. The new Silverado is generating some traffic and buzz, mostly with males 25 to 50, because it’s beautiful. But we just can’t compete.”

    “They leave and go get a Ram. While people love the aggressive design and stylish look of Silverado, prices are scaring them away. Chrysler is far more aggressive at incentivizing their Ram.”

    Brand loyalty goes only so far, he said. “A $200 payment difference every month is too much to overcome. Then we have a very hard time getting those people back once you lose them. We spend millions of dollars getting a customer to walk in the door. All you need to do is a better job of keeping them.”

    Ford is “very good at retaining customers once they capture them,” said Reda, who often refers Ford buyers and Ram buyers to friends in other dealerships.
    Indirect GM Corporate Response:

    The all-new full-size pickups from Chevrolet and GMC are also off to a very strong start.

    “Our production launch was very smooth and crew cab sales are brisk, especially those with premium trims,” said Kurt McNeil, U.S. vice president, Sales Operations. “We look forward to improving availability of our wide-range of cabs, trim series and powertrains.”

    First-quarter 2019 average transaction prices for GM's all-new, light-duty pickups were $8,040 higher compared to their outgoing models in the first quarter of 2018, with the GMC Sierra leading the segment, according to J.D. Power PIN estimates.
    Combined sales of the 2019 Chevrolet Silverado 1500 and GMC Sierra 1500 crew cabs — the first of the company’s all-new full-size pickups to launch — were up 20 percent year over year.
    Crew-cab production mix is currently running above 70 percent to meet strong customer demand, up 10 percentage points on average from the previous-generation trucks.
    More than 95 percent of the all-new GMC Sierra 1500 crew cab sales are high-end trims including SLT, AT4 and Denali.

    Availability of all-new regular-cab and double-cab pickups was very limited during the quarter due to launch timing, but full production of all cab styles started in March and they currently are arriving in dealer showrooms.

    GM will begin the next phase of its full-size pickup truck launch in the second half of the year with the all-new 2020 Chevrolet Silverado HD and GMC Sierra HD.

    “We are bullish on pickups and expect to gain sales momentum throughout the year,” said McNeil. “We are installing capacity in Flint to build more HD pickups in total, more crew cab models, more dualies and diesel models, too, all in response to dealer and customer demand.”










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    Re: Getting Serious: Ram 1500 Sales Squeeze Chevy Silverado

    “Something better change,” said Karl Brauer, executive editor of Kelley Blue Book.
    I understand the new generation Cadillac Escalade will have a knock-out luxury interior.

    You had best believe that GM has an emergency MCE in process on the Silverado interior...a major fail in the (now) consumer driven marketplace.

    More than 95 percent of the all-new GMC Sierra 1500 crew cab sales are high-end trims including SLT, AT4 and Denali.
    It's 2019 and no one gives a damn that you can operate the radio button with your work gloves on - they want large screens and more electronics, just like the RAM 1500 provides. Not my cup of tea, but I don't own a pickup truck. Don't blow this GM.









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    Re: Getting Serious: Ram 1500 Sales Squeeze Chevy Silverado

    So we have change over woes at this point.

    Availability of all-new regular-cab and double-cab pickups was very limited during the quarter due to launch timing, but full production of all cab styles started in March and they currently are arriving in dealer showrooms.
    We will see next quarter if there actually is an issue.

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    Re: Getting Serious: Ram 1500 Sales Squeeze Chevy Silverado

    Crew Cab / Standard bed trucks are very scarce. How that could be 7 months thru the model year is a puzzler.

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    Re: Getting Serious: Ram 1500 Sales Squeeze Chevy Silverado

    FCA does think out of the box a little more than GM, I would love to see the Haulcat built, a 6.2L in a reg. cab was the concept vehicle.

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    Re: Getting Serious: Ram 1500 Sales Squeeze Chevy Silverado

    GM is making $8K more per truck, is GM really concerned seling fewer units but at higher prices?

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    Quote Originally Posted by LONGHORN View Post
    GM is making $8K more per truck, is GM really concerned seling fewer units but at higher prices?
    If sales slide to a point that shifts have to be laid off they should.

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    Re: Getting Serious: Ram 1500 Sales Squeeze Chevy Silverado

    GM response is whistling past the graveyard if a significant interior upgrade doesn't happen soon.. Designers of the current interior should be mortified. And purchasing has to have had a heavy hand in this debacle as well.
    Have to wonder if Lutz would have bought off on this mess.
    Last edited by criticalmass; 04-02-2019 at 02:48 PM.

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    Re: Getting Serious: Ram 1500 Sales Squeeze Chevy Silverado

    Quote Originally Posted by LONGHORN View Post
    GM is making $8K more per truck, is GM really concerned seling fewer units but at higher prices?
    Right now the Silverado Crew Cab, being the first model to hit the dealers, has the most incentives, you will probably see more units being sold when the rest of the line-up get their discounts. Some buyers have to be the first on the block and GM is trying to cash in on those buyers with this new sheet metal.

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    Re: Getting Serious: Ram 1500 Sales Squeeze Chevy Silverado

    So one of them is lying, time till tell. I only saw 1 (one) new Silverado since the launch in Ontario. Plenty of the new Rams. I am in the market for a truck, so I am always on the lookout.

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    Re: Getting Serious: Ram 1500 Sales Squeeze Chevy Silverado

    Quote Originally Posted by LONGHORN View Post
    GM is making $8K more per truck, is GM really concerned seling fewer units but at higher prices?
    They should be. If a customer shops elsewhere and buys a Ram and Ford, there's a good chance that they'll return to that brand to buy again, starting a new brand loyalty run.

    That's my case. I strayed and did not buy GM in 2015, and I still love my Ram especially now that I'm outfitting it with goodies for offroading more and more so I'll keep it for awhile still, but if I were in the market for a new truck, Ram would absolutely get my first choice if I were shopping again. They did me right on my 2014, so I'd happily give them my repeat business. Though I'm thinking a Power Wagon would be sweet, I could always shop that against GM's version... oh wait, they don't have a competitor to the PW!
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    Re: Getting Serious: Ram 1500 Sales Squeeze Chevy Silverado

    Quote Originally Posted by Perian View Post

    It's 2019 and no one gives a damn that you can operate the radio button with your work gloves on - they want large screens and more electronics, just like the RAM 1500 provides. Not my cup of tea, but I don't own a pickup truck. Don't blow this GM.
    .
    No, but i give a damn when you want to force me to buy the upper trims to get a nicer tranny or engine. Eff that crap. I want a base truck with a great combo tranny/engine. THAT is what really sells the Ram and the Ford, besides the interior.
    And besides the 12", GM and Ram have similar 8".

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    Re: Getting Serious: Ram 1500 Sales Squeeze Chevy Silverado

    Quote Originally Posted by canadian.bacon View Post
    No, but i give a damn when you want to force me to buy the upper trims to get a nicer tranny or engine. Eff that crap. I want a base truck with a great combo tranny/engine. THAT is what really sells the Ram and the Ford, besides the interior.
    And besides the 12", GM and Ram have similar 8".
    Or things like the Multi-Pro tailgate. Things that tout being good for the working man... unattainable for the regular working man.

    I saw a GMC ad on Facebook that was completely ridiculous, I literally laughed. Promoting the Multi-Pro tailgate by having a guy in the woods chopping veggies on the mini-tailgate of this uber expensive GMC. I left a comment ripping this hilarious ad, along with practically every other comment. Haven't seen it since, haha.
    The Stable: 2014 Ram Sport 4x4 with 18" Method Racing MR310's wrapped in 35's, 71 Firebird Formula 455 Ridetech equipped, 57 Ford Custom 300, 66 GTO 4 speed, 67 Camaro LT1/T56, 70 El Camino, 71 Camaro future LSX, 82 Z28, 63 Thunderbird, 75 Pontiac Astre GT 406, 65 Dart 318, 87 S10 Blazer, 88 Silverado, 58 Edsel Pacer, 64 Volvo 544. Past: 98 Trans Am 6 speed-432 rwhp, 71 Chevelle SS 454, 71 Camaro 350/4 speed, 66 Mustang 393/T5, 86 GMC Jimmy

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    Re: Getting Serious: Ram 1500 Sales Squeeze Chevy Silverado

    Quote Originally Posted by canadian.bacon View Post
    And besides the 12", GM and Ram have similar 8".
    The larger screen is so important to Ram sales, that FCA bought the supplier to ensure production, and sales only to FCA.







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    Re: Getting Serious: Ram 1500 Sales Squeeze Chevy Silverado

    Quote Originally Posted by LONGHORN View Post
    GM is making $8K more per truck, is GM really concerned seling fewer units but at higher prices?
    Here is the thing though, Silverado has been flat for around 4 years. It's hovered around 585,000 or so.

    Ram? They've gone from 488,000 in 2015 to 597,000 last year. They've grown as a brand. Sure, the ATP might not be outrageous or inflated, because they're only putting up crew cab trucks right now which cost more anyway, but they've got an actual growing base of customers. That's the bad part.

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