GM dealerships face issue on overstocked GMC Sierras, Chevy Silverados

Article by Christian A., on May 9, 2012

Having extra GMC Sierras and Chevy Silverados in their lots is reality for many dealerships of General Motors lately. For example, Rox Covert, a Texas dealer, has around four months' supply of full-sized pickup trucks at his two GMC and two Chevrolet establishments. He typically prefers a three-month's worth of inventory. 

In 2011, GM started producing surplus pickup trucks to get through this year.  The company's three truck factories will be idled for a total of 29 weeks as the automaker retools the facilities for its new-generation SUVs and pickups, set to hit the market next year.

The situation has left many dealers in a predicament. Some of them are turning away trucks, worried about having too many units in stock, while others are bulking up now for fear that their lots will run thin as GM's facilities sit idle. 

Even as dealers of Chevy sell more vehicles than ever due to a revived product range, SUV and pickup truck units are still the lifeblood for many.

Some of these dealers state that increasing supplies of the aging full-sized pickup trucks require heftier incentives. Covert related that they have the "oldest truck in the game," adding that they could use something "stronger." The Sierra and Silverado were introduced in late 2006. Two years later, the present Ford F-150 was launched. 

Chrysler Group is introducing a re-engineered Dodge Ram in fall. However, enhancing incentives would further reduce GM's profits, which will be squeezed in the second and third quarters due to lowered production.

The automaker has a cash incentive of $3,000 on crew-cab variants of the Silverado 1500, according to AIS Rebates, an Ann Arbor firm which offers incentive data to dealers. Some of the dealers are reticent to see their pickup stocks increase. One dealer who requested anonymity stated that he recently turned down his share of at least 20 Silverado units.

As a brand, GMC has been in existence for about 110 years. Over that time, the company has released various pickup trucks which have become successes. Its latest offering is the full-sized 2014 GMC Sierra 1500 pickup which is undoubtedly more refined as well as extremely advanced and powerful.

In addition to having a new exterior, the new model is being offered with three new EcoTec3 engines. The cabin has been updated with some advanced features like the IntelliLink connectivity. A host of other features are included which were mainly created for the most perceptive of truck owners. With regards to the engine, the company set a goal that for the GMC Sierra, power, torque, and even the fuel efficiency, should all be increased. This was made possible by conducting at least 10 million hours of advanced computer modeling.

Half of the time was dedicated on making sure that the combustion process was excellent. The three engines that resulted are the 4.3-liter V6 engine, the 5.3-liter V8 unit, and the 6.2-liter V8 engine. All of these though will have Active Fuel Management, continuously variable valve timing, and direct injection. What this means is that the engines can easily shift to operate using 4 cylinders especially when carrying light load and thus save on fuel. The first engine in particular is the EcoTec3 4.3-liter V6 engine, offers enhanced towing and torque for 6 out of 10 truck owners that also do towing.

Powertrain chief engineer Jordan Lee shared that instead of using the V6 engine such as those made for passenger vehicles, the team instead made a new engine from scratch based on the distinct demands of the pickup truck. The 4.3-liter for instance, he added, comes with the same design architecture similar to the new generation V8 engines customers have come to rely on.

Meanwhile GMC Marketing Vice-President Tony DiSalle revealed that when it came to the 2014 GMC Sierra 1500 pickup truck, the design and the engineering teams made use of everything. He added that the new models not only have the capability and power that customers today expect but there is also the fuel efficiency as well as the host of purposeful and surprise features developed for the customers themselves.

Thus aside from having the latest technology and sporting a new design, the 2014 Sierra comes with various standard features never before seen in a GMC pickup. There are connectivity solutions and it even has the usual tie-down system in the back. The new model also comes with the projector beam headlamps, the only one in its segment. It goes without saying that the new models contain several premium features as well.

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