[UglySunshine]

GM wants to pressure Ford/RAM before launching its new trucks

This is a confusing statement to me. Please elaborate how "pressure" results from GM reducing their profit and likewise encouraging their competitors to take less profit to make a sale.

Do you not think a $12,000 discount on a Chevy truck decreases profit by $12,000 to GM; the same decrease in profit to Ford if they offered a $12,000 discount on a F-150.
In fact the article suggests that GM is offering more discount than Ford and RAM is offering even more discount than GM or Ford.

Clearly, GM is clearing the 18MY for the soon to begin 19MY and they're doing it by sacrificing some of their profit margin.

Perhaps that is because of overproduction as someone else suggested but I think it is GM's way of eliminating MY18 competition to the MY19 when it becomes available. Thus, stacking the odds in favor of a MY19 successful launch (thus avoiding the disappointing last new truck model launch)

 

[Lowboy]

Those are nice,,too bad they are priced the same as full size here,,

For many people the full sized has gotten too big.

 

[jpd80]

It's the peak season and both Ram and GM want to move as much tin as possible,
Ford is arguably already there with near 85,000 trucks last month.

 

[NeverEnough]

Economy looks to be headed down; I suspect this is just the start of a 'readjustment' in vehicle prices.

I've been laughing at the prices people have been paying, and being told I just need a better job. Yeah, it's not that suckers get suckered.

When I look at all the luxo-rides on the road, they all look like they are upside down, or soon will be.

Seems like I'm always pushing off purchasing a new truck and I'd like to just buy one already. But if this "price war" is going to continue I can definitely wait for a end of the year sale on a 2019 Silverado...

I'm sure Ford will get real aggressive when there truck is going up against all new Silverado's, Sierras and Rams. Ram never doesn't offer big discounts, so GM will have to follow suit i'd think.

 

[pic18]

Seems like I'm always pushing off purchasing a new truck and I'd like to just buy one already. But if this "price war" is going to continue I can definitely wait for a end of the year sale on a 2019 Silverado....

The 2019 truck is the all new redesign that will be with us the next few years. These deals are happening to move out the old design 2018 models. I don’t think we will see deals this good this time next year. Dodge is doing the same thing to make room for their newly designed 2019. Plus sticker prices are going to go up on the new trucks.

 

[jzchev28]

The 2019 truck is the all new redesign that will be with us the next few years. These deals are happening to move out the old design 2018 models. I don’t think we will see deals this good this time next year. Dodge is doing the same thing to make room for their newly designed 2019. Plus sticker prices are going to go up on the new trucks.

Sure we will, but the big $$$ won't be on the 2019 Silverado, the big deals will be on the 2019 Silverado Classic/Legacy or whatever they are calling it.

 

[linton23]

A good portion of the discounts is from Dealers markup forced on us by GM and Employee price or supplier price also the fact that they limit it to certain models and packages are a problem to our dealership we sale LT all star crews the best so we will be slow this month as the double and LTZ are the big rebates. We had over 20% off on trucks a few months back.

 

[gkr778]

Ram never doesn't offer big discounts, so GM will have to follow suit i'd think.

Never doesn't = always does

Correct, Ram has been offering huge incentives on MY 2018 Ram 1500 since the model year began. I think their incentives currently are almost as generous as those from GM on MY 2018 Silverado and Sierra.

MY 2019 Ram 1500 sales incentives for customers, not surprisingly, are considerably more stingy than the 2018 model's. If 2018 Ram 1500 fits your needs, now is as a good time as any to shop for one.

 

[Ed753]

This is a confusing statement to me. Please elaborate how "pressure" results from GM reducing their profit and likewise encouraging their competitors to take less profit to make a sale.

Do you not think a $12,000 discount on a Chevy truck decreases profit by $12,000 to GM; the same decrease in profit to Ford if they offered a $12,000 discount on a F-150.
In fact the article suggests that GM is offering more discount than Ford and RAM is offering even more discount than GM or Ford.

Clearly, GM is clearing the 18MY for the soon to begin 19MY and they're doing it by sacrificing some of their profit margin.

Perhaps that is because of overproduction as someone else suggested but I think it is GM's way of eliminating MY18 competition to the MY19 when it becomes available. Thus, stacking the odds in favor of a MY19 successful launch (thus avoiding the disappointing last new truck model launch)

His statements are almost always confusing; emotion, not fact based..................

Seems like I'm always pushing off purchasing a new truck and I'd like to just buy one already. But if this "price war" is going to continue I can definitely wait for a end of the year sale on a 2019 Silverado...

I'm sure Ford will get real aggressive when there truck is going up against all new Silverado's, Sierras and Rams. Ram never doesn't offer big discounts, so GM will have to follow suit i'd think.

Ford sold 85K truck last month, I don't see them increasing incentives to sell more, might even decrease.............

The problem with your thinking is between now and when the (new) 2019 Silverado's become the year-end model, GM is going to be building a crap-ton load of K2XX's be it 2018 Silverado or 2019 Silverado Legacy. Silao Plant is making K2XX's until November 2018, Oshawa is slated to make K2XX's until July of 2019 and based on recent developments, through December of 2019.

GM is doing everything possible to not discount the T1XX - If the T1XX's are selling with low incentives, there is little reason for Ford or Ram to discount as much as they are today. Which is why I said if the 2018 K2XX fits your need, buy one, if it doesn't, I understand.

The 2019 truck is the all new redesign that will be with us the next few years. These deals are happening to move out the old design 2018 models. I don’t think we will see deals this good this time next year. Dodge is doing the same thing to make room for their newly designed 2019. Plus sticker prices are going to go up on the new trucks.

Agree, additionally, since GM and Ram are still making the "old" truck for some time, "inventory clearance" is a myth, they aren't trying to clear inventory, they are just trying to sell more trucks. For the time being it is hurting sales of the new higher-priced Ram, GM doesn't have that problem, yet........

A good portion of the discounts is from Dealers markup forced on us by GM and Employee price or supplier price also the fact that they limit it to certain models and packages are a problem to our dealership we sale LT all star crews the best so we will be slow this month as the double and LTZ are the big rebates. We had over 20% off on trucks a few months back.

Thanks for your insight, I was surprised to see these incentives target the LTZ, typically it is always the LT with All-Star Package. Too bad the K2XX is so lacking, I suspect we'll have to wait ~2 years before we see any deals comparable to this on the T1XX's.

 

[Z Fury]

Dealer down the street from me has a Centennial Silverado with an MSRP of $58K listed for $44K. $14K off of an LTZ crew cab is a pretty big deal, but a new ZR2 can be had (with employee pricing and NO haggling) for under $40K. Decisions, decisions...

 

[gkr778]

Ford sold 85K truck last month, I don't see them increasing incentives to sell more, might even decrease.............

+1
Ford F-150 sells on product merit more so than any other vehicle in its class. For market dynamics in the U.S. "right here, right now" with MY 2018 half ton pickup trucks:

• If you want the best "deals", GM and FCA should be the top picks
• If you want the best product, Ford is the way to go
• If you live in Mississippi or Tennessee and don't care for either the best deal or the best truck, choose Nissan Titan. Your fellow citizens employed by Nissan will thank you.

When all manufacturers of MY 2019 pickup truck models make them available for retail sale later this year, the situation may change.

 

[b4z]

10% off on Tahoe. its been a while weve seen that kind of incentive.

 

[NoStopN]

I mean, you're on the right track, but it isn't a ZR2... I would be all over a ZR2 in centennial blue (with the badges). The badges are an easy after-market add, but the paint would be a bit more costly.

Or buy the Centennial Colorado & add the ZR2 bits. All you would need is the front bumper, the shocks, skid plates & the rock rails. You can choose the same tires as GM puts on the ZR2 or choose a different tire.

How much profit is built into these trucks that they can take $13,000 to $16,000 right off the bat?

I wouldn't be surprised if that number is between $10-15K, even with those huge discounts.

The 2019 truck is the all new redesign that will be with us the next few years. These deals are happening to move out the old design 2018 models. I don’t think we will see deals this good this time next year. Dodge is doing the same thing to make room for their newly designed 2019. Plus sticker prices are going to go up on the new trucks.

Sticker prices go up, whether at the release or months later. GM has done it before. And then the pendulum swings the other direction with monster discounts like these.

MY 2019 Ram 1500 sales incentives for customers, not surprisingly, are considerably more stingy than the 2018 model's. If 2018 Ram 1500 fits your needs, now is as a good time as any to shop for one.

The same will happen with the new GM trucks. No discounts when the trucks release, but as time passes, the manufacturers have to move the metal. Lower transaction prices is the remedy. The Ram has been out for 6 models years with this nose & 10 with the platform, so they are making profit & are willing to give up more to sell trucks & gain marketshare.

+1
Ford F-150 sells on product merit more so than any other vehicle in its class. For market dynamics in the U.S. "right here, right now" with MY 2018 half ton pickup trucks:
If you want the best "deals", GM and FCA should be the top picks
If you want the best product, Ford is the way to go
If you live in Mississippi or Tennessee and don't care for either the best deal or the best truck, choose Nissan Titan. Your fellow citizens employed by Nissan will thank you.

When all manufacturers of MY 2019 pickup truck models make them available for retail sale later this year, the situation may change.

I guess San Antonio neighbors don't care if you buy a Tundra. :lmao:

 

[1999 White C5 Coupe]

Reuters.com
June 4, 2018

.

Wouldn’t this latest round of discounts be an intense sales competition and not a war?

More media hype.........

 

[jzchev28]

Wouldn’t this latest round of discounts be an intense sales competition and not a war?

More media hype.........

Well no it's not a war in the literal sense, no one at Ford or FCA will be launching any missile strikes towards the Ren Cen.

 

[osbornk]

Perhaps that is because of overproduction as someone else suggested but I think it is GM's way of eliminating MY18 competition to the MY19 when it becomes available. Thus, stacking the odds in favor of a MY19 successful launch (thus avoiding the disappointing last new truck model launch)

I think this be backwards. If people who want a Silverado and they by a 18 because of the discount, wouldn't that take them out of the market for a 19?

 

[richmond2000]

I think this be backwards. If people who want a Silverado and they by a 18 because of the discount, wouldn't that take them out of the market for a 19?

yes and NO
if GM does NOT "win" that sale RAM / FORD will and that consumer will NOT buy a 19 full stop
few customers are going to be able to wait 9 months to get a new truck AND be able to pull the trigger new ++ discount buyers are NOT the buyers wanting the high line NO discount new model 19 trucks and the early trucks will be higher trim to "reward" the ones willing to wait-pay for the nicer truck

 

[Case95xt]

I REALLY want a new ZR2 pickup, but that Centennial Silverado is making my eye (and mind) wander... They are very well done.

I really like that color blue but $3500 for the paint and badging is crazy money that wont come close to giving back when you sell it.

 

[jpd80]

I think this be backwards. If people who want a Silverado and they by a 18 because of the discount, wouldn't that take them out of the market for a 19?

yes and NO
if GM does NOT "win" that sale RAM / FORD will and that consumer will NOT buy a 19 full stop
few customers are going to be able to wait 9 months to get a new truck AND be able to pull the trigger new ++ discount buyers are NOT the buyers wanting the high line NO discount new model 19 trucks and the early trucks will be higher trim to "reward" the ones willing to wait-pay for the nicer truck

The answer is that today, buyers get a great deal on an ‘18 model,
we worry about sales of ‘19s when they arriv.

Thanks to forced shutdowns last month, F Series inventory dropped near 37,000 last month so there’s a lot less pressure on Ford with incentives come their changeover to 2019 model which will be far les dramatic than the GM change.

GM needs to concentrate on today’s buyers and work down their stockpile of trucks over the summer, use plenty of incentives and just sell, sell, sell. The market is flattening so make the best of it now an keep RAM at bay until the new trucks get here.

 

[joemac]

Whenever I see these steep discounts the only thing I think is how much they gouge people other times.

If the customer doesn't feel as if the deal is commensurate and reciprocal for value exchanged, the customer is of no obligation to purchase anything. The customer makes conscience choice to sign for a dollar amount offered or negotiated.

If a customer feels that they are being gouged, not being offered a fair equitable price, they are under no obligation to sign and commit to any purchase.

This sense of victim hood seems to be more of a personal responsibility controlling wants, desires, foregoing the financial obligation of which they are committing.

How much money is the right amount of money for a manufacturer to profit, how much is too much? With no monopoly or anti-trust issue here because one can go buy a pickup from a litany of manufacturers. The answer is anything but supply and demand, capitalism.