General Motors plans to win more pickup truck sales this September by offering special leases as well as rebates through a Truck Month promotion. The carmaker will also pay bonuses to dealers who managed to top Chevrolet Silverado retail sales targets. According to a memo, dealers who were able to hit sales targets will receive a bonus of $1,300 for every sale of MY2014 and MY2015 pickups.
Dominique DeNooyer, a sales manager at Robert DeNooyer Chevrolet in Holland, Michigan, remarked that truck sales this month has been strong so far, noting that GM is “throwing some money” that dealers are chasing.
He noted that the promotion is an indication that GM is focused on recovering market share from Ford. GM’s promotion and dealer incentives are considered as part of a possible sustained offensive that takes advantages of the situation at Ford, which has idled its main truck plant in Dearborn late October as it prepares for the launch of the aluminum-body 2015 F-150 in November.
Due to the changeover, Ford would not be able to make some countering actions without risking a depleted supply, analysts have remarked. Barclays Capital analyst Brian Johnson recently wrote in in a research note that Ford’s market share dropped after cutting F-series incentives in August, since the carmaker was “likely conserving inventory given the changeover.”
He remarked that Ford’s incentive spending for the F-series in August dropped by around $650 per vehicle. For most of 2013, Ford and Ram offered significant incentives on their pickup trucks partly to get consumers off GM’s redesigned MY2014 pickups that were rolled out in the summer.
Since GM was unwilling to offer discounts its new trucks, it eventually saw its market share trimmed early in the launch. But for this year, GM has the chance to spoil Ford’s fun. [source: automotive news - sub. required]