GM will increase truck discount

GM will increase truck discount
Washington — General Motors Co. CEO Dan Akerson said Friday the company will respond to hefty incentive spending by its competitors on trucks.

“We were interested in the way some of our competition has incentivized in recent months, and we’ll meet competitive threats in the marketplace,” Akerson told The Detroit News.

Although Akerson wasn’t specific about sales incentives, at least one Chevy dealer in Texas is reporting “numerous discounts and rebates on Silverado trucks that, in some cases, reduced the MSRP (manufacturer’s suggested retail price) by as much as $6,000 to $7,000,” Jefferies & Company Inc. analyst Peter Nesvold wrote in a Friday research note to investors.

GM spokesman Tom Wilkinson on Friday said the company added several incentives on the 2013 Silverado effective Dec. 1 through Jan. 2, including $1,000 bonus cash, zero percent financing for 60 months and a lease enhancement.

Buyers can get $4,500 rebates on extended-cab 2013 Silverados and add an extra $1,000 if they have a 1999 or newer vehicle to trade in, said Jim Freemon, general sales manager of Bill Crispin Chevrolet in Saline. Deals on the 2012 Silverado extended cabs are even better, but the trucks are limited in supply, Freemon said.

GM also is offering zero percent financing this month up to 60 months on the 2013 GMC Sierra, according to

This week, GM said it failed to hit sales goals in November as competitors sweetened incentives, leaving the automaker looking at possible output cuts to ease a more than 41/2-month supply of full-size pickups.

GM said its competitors rolled out “unexpectedly high” incentives in November on 2012 pickups and GM opted not to follow suit, causing it to lose share and sales to rivals. The result: Chrysler’s Ram pickup sales soared 23 percent in November, and Ford F-series sales jumped 17.9 percent. But GM’s total truck sales slid 11 percent and full-size truck sales fell 8 percent.

GM said it had the lowest incentives in the truck segment in November, $500 lower than the segment average, while its average transaction prices on large pickups are up more than $2,700 compared to a year ago.

While it remained disciplined on incentives, its inventory grew to end November with 245,853 full-size pickups, or a 139-day supply.

Analysts have been watching GM’s pickup inventory, which is much higher than the less-than-100-day supply they consider ideal for full-size pickups. GM has been building full-size pickup inventory this year to compensate for downtime at plants as it transitions to all-new 2014 Chevy Silverados and GMC Sierras coming next year.

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