Prompted by the 24% increase in its pickup inventories posted in the past month, General Motors has decided to take out 10 weeks of truck production. GM is presently preparing to present a redesigned Chevrolet Silverado and GMC Sierra in the second quarter. GM had ended 2012 with a pickup inventory that’s nearly meeting targets.
Last Friday, GM said that the number of trucks in its inventory increased to a 117-day supply at the end of January from 80 the previous month. Spokesman Jim Cain said that the 10 down weeks are a total for GM's three pickup plants to allow for the changeover. He said last Saturday that the plant downtime has been scheduled for months. GM aims not to go back to its former habit of heavily discounting vehicles to increase sales, which can harm brand and resale values.
Unfortunately, it now faces the challenge of high inventory levels. GM would need to balance getting enough of the older version of the trucks to sell to customers while not owning too many that it damages the rollout of the new product. Last Friday, Kurt McNeil, GM vice president of U.S. sales operations, said that the company has a good feeling about its present status and the fact that it’s entering an improving industry.
In a statement, the automaker said that as of the end of last month, it had 234,342 full-size pickups in its inventory. This stands for 45,774 more trucks than the previous year. It’s also 5.7% higher than the 221,649 reported at the end of December.
The 2012 target of the company was to end the year with 200,000 to 220,000 pickups in inventory, providing it with 80 to 85 days' supply on a selling-day adjusted basis. GM said that the increase in its inventory comes as last month’s Silverado sales increased by 32% to 35,445 units and Sierra deliveries rose by 35% to 12,846 when compared to the prior year.
Chevrolet has finally unfurled the next-generation of the Silverado 1500 (2014 model year). The third generation is recreated and reengineered from the ground up to become the strongest and the smartest – as well as the most capable -- Silverado ever.
Building on Chevrolet's 95 years of truck heritage, the new generation of the Silverado sets a new standard among full-size pickups. It comes with a number of technological updates. For instance, it is available with three efficient EcoTec3 engines and features revised steering, suspension and brakes. It also comes with a stronger yet quieter and more comfortable cab as well as cargo bed with great levels of manageability. Likewise, the new Silverado offers genuine truck capability for customers’ towing and hauling requirements.
GM North America president Mark Reuss remarked that Chevrolet has a commitment to provide the most-refined, best-engineered pickups to its customers, who depend on their trucks to accomplish their daily activities, whether for work or for their families.
The 2014 Silverado 1500 joins Chevrolet Silverado 2500 and 3500 HD pickups in Chevrolet's three-truck portfolio, all of which are designed and engineered to cater to the needs of their intended customers. In addition, Chevrolet is currently developing the next generation of its Colorado midsize pickup, which is great for customers needing the capabilities of truck, but want a more compact and more fuel-efficient package.
Chevrolet made sure that the 2014 Silverado 1500 is designed and engineered to cater to the needs of full-size truck customers while boosting its reputation for building the longest-lasting, most dependable and accessible full-size trucks.