GM Truck Production Gap Divides Dealerships

Luke Vandezande
by Luke Vandezande

Depending on where you live, a hiccup in GM’s truck supply lines might make buying a pickup from your local Chevrolet of GMC dealer difficult.

With its current line of Silverados and Sierras remaining unchanged since 2006, GM is falling behind the pack. There will be a new RAM pickup in the fall and Ford’s F-Series came on the scene two years after the current GM line. That line will be refreshed to remain competitive, but that means a full production halt for a total 29 weeks between all the plants affected.

Of course in that time, there will be a lapse in normal production, something the company tried to soften by ramping up production in anticipation. While that might seem like a solution in theory, problems started to rise when it became apparent that dealerships wouldn’t all have a positive disposition to bulking up truck supplies ahead of time.

Some dealerships are going with the plan, but according to Automotive News, there are also stores saying no to the trucks. As AIS Rebates, an Ann Arbor, Mich., firm that provides incentive data to dealers reports, there is a $3,000 incentive for dealers on crew cab versions of the Silverado and Sierra 1500, but anything beyond that is unlikely because the gap in production will already be squeezing GM’s profits.

That leaves dealerships in one of two places, which inevitably affects the consumer. Dealers will either find a stockpile of trucks that might not move given the impending approach of improved trucks, and those turning the vehicles away may find customers flowing to new dealerships or brands over the unavailability.

Either way, it could spell out a sweet situation for customers who play their cards right. On the one hand, your local dealer might put cash on the hood if there are too many trucks getting sun tans on the lot. In the other scenario, where that dealership runs dry, you might find another dealership eager to sweet talk new customers away from the competition.

[Source: Automotive News]

Luke Vandezande
Luke Vandezande

Luke is an energetic automotive journalist who spends his time covering industry news and crawling the internet for the latest breaking story. When he isn't in the office, Luke can be found obsessively browsing used car listings, drinking scotch at his favorite bar and dreaming of what to drive next, though the list grows a lot faster than his bank account. He's always on <A title="@lukevandezande on Twitter" href="">Twitter</A> looking for a good car conversation. Find Luke on <A title="@lukevandezande on Twitter" href="">Twitter</A> and <A title="Luke on Google+" href="">Google+</A>.

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