GM Said To Be Limiting Dealer Orders Of V-8 Pickups

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Thread: GM Said To Be Limiting Dealer Orders Of V-8 Pickups

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    News Contributor Premium Member Perian's Avatar
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    GM Said To Be Limiting Dealer Orders Of V-8 Pickups

    Bloomberg News

    September 30, 2013

    GM Said to Have Limited Supply of Most Popular V-8 Pickup

    General Motors, introducing its first redesigned pickups since 2006, can’t make enough of the most popular versions of its new Chevrolet Silverado and GMC Sierra, according to three people familiar with the effort.

    Demand for the trucks is exceeding a supplier’s ability to produce certain drivetrain parts for the 5.3-liter V-8 engine, the most popular size, and GM is limiting how many dealers can order, said two of the people, who asked not to be identified because the matter is private. While one of the people said the issue could be resolved soon, another said it could take longer than a couple of months. They declined to identify the supplier.

    Detroit-based GM needs to resolve the shortage quickly to get the most out of its redesigned trucks before Ford Motor brings out a new F-150 next year. “This is a window of opportunity for GM given the strong pickup market and the new Ford truck which launches in fall 2014,” Alan Baum, an industry consultant at Baum & Associates in West Bloomfield, said in an e-mail.

    The constrained supply is most noticeable to dealers accustomed to ordering only V-8 trucks, one of the people said. The 5.3-liter V-8 is produced at GM plants New York, Canada and Mexico.

    Dealers always want more of the “hot new truck,” said Terry Rhadigan, a GM spokesman. “It’s a temporary thing.” A dealer ordering 10 of the 5.3-liter pickups is getting eight of them, he said. “It’s almost an oxymoron to call it a constraint at 80 percent.”

    GM plans to offer the light-duty version of the new pickups with three engine options, a 4.3-liter V-6, 5.3-liter V-8 and 6.2-liter V-8. The smaller engine began production in August and the larger V-8 doesn’t arrive in showrooms until later this year. The 5.3-liter engine made up about 80 percent of the previous truck’s sales and was expected to be the same going forward, Baum said.

    “Given that the 6.2 is late-availability and the 4.3 is obviously not as capable as the 5.3, it is a significant issue” to have limited availability of that engine, Baum said. “That said, their production volume to date has been strong. The volume they have been able to achieve as they were making the changeover” has been impressive.

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    News Contributor Premium Member Perian's Avatar
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    Re: GM Said To Be Limiting Dealer Orders Of V-8 Pickups

    Lost in the translation of this article is the incredibly successful ramp-up GM has had with the new generation pickups.

    They have had a perfect launch of a ground up new vehicle.

    How wonderful to have marketplace acceptance lead to a product shortage!

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    Re: GM Said To Be Limiting Dealer Orders Of V-8 Pickups

    Quote Originally Posted by Perian View Post
    They have had a perfect launch of a ground up new vehicle.
    Is this really a ground up new vehicle?
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    Re: GM Said To Be Limiting Dealer Orders Of V-8 Pickups

    I've heard nothing but good about the new pickups; a business partner is driving his to a site as I type this, and he absolutely loves it. Hasn't stopped raving about it and has pretty much sold me on picking one up this winter. I've been using a F-150 for my occasional site visits for the past few years and although it's a fine machine (and dead reliable, I'll add), the new interiors of the Silvy REALLY look nice!

    If GM is meeting 80% of dealer demand then they're doing well with the ramp-up and a benefit may be a bump in the ASP due to some slight retail constraints. Might not be a bad problem to have.

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    Re: GM Said To Be Limiting Dealer Orders Of V-8 Pickups

    Quote Originally Posted by Tomko View Post
    Is this really a ground up new vehicle?
    Yes it is.

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    Re: GM Said To Be Limiting Dealer Orders Of V-8 Pickups

    The transition has been really good. The wind down of the '13's pahsed out and '14's filling lots now. My old dealer has nothing for '13's and the only trucks they don't have are the new RC's which are on their way. I can see the 5.3 being a bigger deal in the CC or DC, but a really good setup of 4.3 for the RC should help. GM though can't fault the dealers for wanting to order 5.3's. They've pushed that this is the engine to have for years now(Texas and All-Star Silverado packages were almost stupid not to do for the $$), so this shouldn't be a shock that dealers and buyers want it.

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    Lower supply, means less discounts, which means higher transaction prices.

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    Re: GM Said To Be Limiting Dealer Orders Of V-8 Pickups

    Quote Originally Posted by Perian View Post
    Lost in the translation of this article is the incredibly successful ramp-up GM has had with the new generation pickups.

    They have had a perfect launch of a ground up new vehicle.

    How wonderful to have marketplace acceptance lead to a product shortage!
    It’s not been as good as you think, but it appears all (yes more than one) of early issues we, caught early, and minimized visibility.

    Ground-Up, is maybe just a bit over-exaggeration, quite a bit actually.

    If this was tied to the PR about all the plants up and running and all of them running 3 shifts 7 days a week, but that is not the case, appears someone that is responsible for components of the new truck are not able to keep up, already which isn't good, they haven't built that many, much less up to anywhere near maximum capacity.



    Quote Originally Posted by Tomko View Post
    Is this really a ground up new vehicle?

    Body, Engines and Rear-End are new, the article states "Drivetrain" almost like its somewhere from the flywheel back.


    Quote Originally Posted by All Star View Post
    Lower supply, means less discounts, which means higher transaction prices.
    How about CAFE? Could be all a ploy to sell more V6's?

    I did notice this weekend in the paper, they were advertising lease deals on V6 "Double Doors".
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    Re: GM Said To Be Limiting Dealer Orders Of V-8 Pickups

    Come up here the lots are still bulging with 13's

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    Re: GM Said To Be Limiting Dealer Orders Of V-8 Pickups

    Quote Originally Posted by All Star View Post
    Lower supply, means less discounts, which means higher transaction prices.








    How about CAFE? Could be all a ploy to sell more V6's?

    I was thinking along these same lines they both seem plausible to me and is exactly what the doctor ordered(general wanted).

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    Re: GM Said To Be Limiting Dealer Orders Of V-8 Pickups

    Our store had been timid about ordering our first 4.3L V6. Not that we where not confident in its capability... more that we feared customer acceptance and the added hurdle of another objection. So we decided to hold off on 4.3L orders until we had a healthy selection of 5.3L on the lot.
    I'm sure our approach was mirrored by many other stores.
    Shortly after launch, when the 4.3L came on-line, the 5.3L went on constraint...
    GM saw dealer reluctance to order the V6 and forced our hands. "OK, ABC Motors, you get 3 Silverado 1500 Crews this week. BTW, 5.3L is on constraint and you can only have one. Enjoy those V6s!"
    My conspiracy theory in a nut-shell... there is no shortage of 5.3L capacity. GM just wants to make sure dealers don't order 100% 5.3L and the constraint is how they are doing it. I don't blame them.

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    Re: GM Said To Be Limiting Dealer Orders Of V-8 Pickups

    Quote Originally Posted by Tomko View Post
    Is this really a ground up new vehicle?
    No...its not. The tires still use the same rubber compound as before and the same air to fill them. The side glass and front windshield also are made using the same material/sand as the previous GMT900's. What a sham!
    Last edited by 61BelAir; 09-30-2013 at 10:52 AM.

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    Re: GM Said To Be Limiting Dealer Orders Of V-8 Pickups

    Quote Originally Posted by Ed753 View Post
    How about CAFE? Could be all a ploy to sell more V6's?

    I did notice this weekend in the paper, they were advertising lease deals on V6 "Double Doors".
    I don't think so...the difference in fuel economy between the V6 and the V8 is very small.

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    Re: GM Said To Be Limiting Dealer Orders Of V-8 Pickups

    Quote Originally Posted by All Star View Post
    I don't think so...the difference in fuel economy between the V6 and the V8 is very small.
    But it all adds up...............

    The last full year data that I have (2011 Model Year) indicates, that 5.1% of GM Silverado's and Sierra's had the 4.3L V6, the rest were V8, be it CAFE or other, this might just be a fabricated excuse to get that number in the 20's, an increase from 5% to 20% would be an additional +/- 125,000 V6 units on the road.
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    Re: GM Said To Be Limiting Dealer Orders Of V-8 Pickups

    maybe to sell more V6 models. the V6 is impressive to me. if i remember correctly, it gets the same or similar power and towing as the last 5.3 v8.
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