GM Puts Production Cuts For Pickups Under Consideration

[William Maley]

GM Puts Production Cuts For Pickups Under Consideration

William Maley - Editor/Reporter - CheersandGears.com

May 5, 2011

General Motors is considering whether to cut production of their pickup to help lower their inventory. According to GM's vice president of U.S. sales, Don Johnson, GM's pickup inventory rose to 275,000 vehicles in April. In, March the inventory stood at 264,000 vehicles.

"We're going to do something about it, but we haven't made those calls yet." Buyers shifted away from trucks last month, "but no one month makes a trend, so we've got to see where this one holds," GM North American President, Mark Reuss.

Sales for the Chevrolet Silverado and GMC Sierra are up this year with the Silverado seeing a 19% increase and the Sierra seeing a 35% increase.

Source: Automotive News (Subscription Required)

[G. David Felt]

YES, YES and YES!!!

GM cut production to keep prices up, demand manageable and keep from having to do discounts to move units. It would be better at this time in the economy to be a bit on the lean side than on the bloated side.

[GMTruckGuy74]

I agree with you dfelt, the last thing we need right now is another "Truck Month" fire sale on GM's full-size pickups. With the gas price where it is, it's better to be lean than fat right now with these trucks. Keep dealer "sold" orders open though, because some customers have to have theirs built a special way.

[hyperv6]

GM can afford to do this better now that they have already cut much of the over capacity and other union restrictions they had before.

In the past it was cheaper to keep plants open and sell vehicles at a loss vs closing plants and costing even more.

It is nice that they have these options now where they were really limited on what evil to choose before.

I know they are not moving the new trucks up any but I wish they would get the better V6 package out even in this truck. They really need it as it would help sales during the gas spikes. I see the Ford V6 sales in the F150 was up to 50% last month. I wonder how many of these could have been a GM purchase if they had a good Turbo V6 package to offer?

Edited May 6, 2011 by hyperv6

[riviera74]

A good turbo v6. Ummm, where? AFAIK, since GM loves putting in pushrod v8s into trucks, where is that v6 equivalent if there is a need for them? Certainly the 3.6L v6 is too refined for a truck (not to mention trucks NEED torque). Also, when is GM going to release their new Ranger fighter anyways? Not everyone needs a Silverado.

[loki]

excess stock is a bad thing, but they can't raise their prices by lowering inventory, they have competition you know....

[Drew Dowdell]

excess stock is a bad thing, but they can't raise their prices by lowering inventory, they have competition you know....

What they are trying to avoid is having to slap $9,000 in rebates on the trucks to move them. Demand is likely to drop due to current gas prices. They need to match supply to that demand as best as possible.

[SAmadei]

excess stock is a bad thing, but they can't raise their prices by lowering inventory, they have competition you know....

What they are trying to avoid is having to slap $9,000 in rebates on the trucks to move them. Demand is likely to drop due to current gas prices. They need to match supply to that demand as best as possible.

Or is it? Gas speculation is down since Osama Bin Laden died... and some people are claiming prices could be headed back down for a stretch.

[hyperv6]

A good turbo v6. Ummm, where? AFAIK, since GM loves putting in pushrod v8s into trucks, where is that v6 equivalent if there is a need for them? Certainly the 3.6L v6 is too refined for a truck (not to mention trucks NEED torque). Also, when is GM going to release their new Ranger fighter anyways? Not everyone needs a Silverado.

There is a turbo V6 coming soon and could be also used in the trucks.

The Ranger is dead but the the Colorado was just shown in Asia and odds are will be shown here in the next year. GM has not anounced it here but they are already testing them here.

I am sure GM will notice the V6 ratio in the Fords and will have something for it but when?

[Drew Dowdell]

excess stock is a bad thing, but they can't raise their prices by lowering inventory, they have competition you know....

What they are trying to avoid is having to slap $9,000 in rebates on the trucks to move them. Demand is likely to drop due to current gas prices. They need to match supply to that demand as best as possible.

Or is it? Gas speculation is down since Osama Bin Laden died... and some people are claiming prices could be headed back down for a stretch.

They will retreat a bit after Memorial Day, but $3.50 a gallon is the new "good deal!"