William Maley
Staff Writer - CheersandGears.com
October 22, 2013
Last week, General Motors announced they would be raising the prices on the new Chevrolet Silverado and GMC Sierra by as much as $1,500. This week, dealers are giving the company a piece of their mind with this decision. They say sales of the two trucks are getting beaten up by discounts and rebates being offered by Ford and Ram to clear out their stock of 2013 models.
"We all know that it's a great truck. But [GM's] position is that the vehicle stands on its own and it doesn't need a bigger rebate. That's not what the market is telling us," said W. Carroll Smith, president of Monument Chevrolet in Pasadena, Texas.
Part of the problem for GM is that its trucks are arriving at the time when the current F-150's is reaching the end of its lifecycle, a fact that Ford has taken advantage of by offering massive discounts. Dealers want GM to fight back by offering more incentives. GM is sticking to its guns however.
"You don't ever want to let the oldest trucks in the market dictate strategy for the newest and best truck in the market," said GM spokesman Jim Cain.
Dealers and analysts do believe that the price disadvantage on GM's new trucks is only temporary and sales will climb back up when Ford and Ram's supply of 2013 models is depleted. However, some dealers believe this move could hurt sales in the long run.
"It looked like we're finally going to get into the game. Then they raise the prices. It's like it kicks you in the head," said Rox Covert, dealer principal at two Chevrolet dealerships and two Buick-GMC stores in the Austin, Texas, area.
Source: Automotive News (Subscription Required)
William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster.
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