Can Improved Fuel Economy Boost GM Truck Sales?
Though General Motors (NYSE:GM) continues rolling out its arsenal of 2015 trucks, the competition is showing stronger sales. A disappointing September called into question the automaker’s strategy with its high-end pickups, among them the Chevy Silverado LTZ. GM is hoping the improved fuel economy in its trucks appearing later this fall will pull in some of the business headed Ford’s (NYSE:F) way.
According to sales figures in September, General Motors was hurt by the performance of its pickups, the best-selling segment in the U.S. market. Chevy Silverado models still posted 32,506 units sold for the month, but it was an 11 percent drop compared to September 2012. It also represented a sliver of the dominant Ford F-Series performance of 60,456 trucks moved in September.
GM certainly hoped for much better results with its redesigned pickups. The company’s leadership is attributing the poor sales to higher transaction prices as well as supply issues. Kurt McNeil, vice president of U.S. sales for General Motors, told Bloomberg that the explanation was in the price points.
“No one was close to us from a price reduction standpoint,” McNeil told the news outlet. On the supply front, GM only has itself to blame.