General Motors Co. is preparing to unveil the redesigned versions of the Chevrolet Silverado and GMC Sierra in Pontiac on December 13, 2012 as it increases its incentives in response to the expanding inventory of the current models. Interested buyers, however, have to wait until the second quarter of 2013 before they could start acquiring the new full-sized pick-up models.
Until the rollout of the 2014 models, consumers could still buy one of the current versions of the Chevrolet Silverado and GMC Sierra. Matthew Stover, an analyst at Guggenheim Securities, describes the full-sized pick-ups as “huge cash-flow” machine, noting that the introduction of the products post-bankruptcy is just for the “psychology” for GM.
The carmaker considers the rollout of the new trucks and related sports utility vehicles -- which analysts say could generate profits of $12,000 or more – as critical.
The carmaker’s pickups and SUVs like the Chevrolet Tahoe and Suburban, GMC Yukon and Cadillac Escalade are still the main attractions at dealership, despite positive reviews for new small cars like the Chevrolet Cruze. GM’s pickups and SUVs have combined US sales of over 799,000 vehicles in 2011, representing an 11-percent growth over 2010.
Despite being the oldest truck models on the market, GM pickups managed to grab the second rank in all US vehicle sales in 2011, behind only Ford Motor Co's F-150 truck. According to analysts, trucks and SUVs account for about 60 percent of GM's North American profit. Citi expects the new models to generate over $1 billion in additional operating earnings in 2013 and 2014 for GM.