Chevy's New Silverado Takes Cues From Ford

Reviewers are weighing in on General Motors' (NYSE: GM  ) new full-sized pickups, the Chevy Silverado and GMC Sierra. Word is that the new trucks are much nicer than the old ones, with better fuel economy and lots of great new features.

But the story behind the story is this: GM expects its new trucks to generate much bigger profits for the company than the old models ever did -- thanks to a strategy that GM borrowed from Ford (NYSE: F  ) . In this video, Fool contributor John Rosevear looks at GM's new pickup strategy -- and how the new trucks were designed from the start to make it happen.


Read/Post Comments (13) | Recommend This Article (3)

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  • Report this Comment On June 16, 2013, at 11:46 AM, dennypat38 wrote:

    I think you need GLASSES the chevy has to much chrome. Also when the new ATLAS comes out GAME OVER, and please write a story on GM still owning 40 BILLION or more to tax payers. REAL WORLD NOT SMOKE AND MIRRORS

  • Report this Comment On June 16, 2013, at 12:55 PM, HarryRSole wrote:

    When it's all said and done it's still a useless GM. GM does not make trucks as far as I'm concerned, they're like the Dodge a 4 wheel drive car they forgot to put a trunk on.

  • Report this Comment On June 16, 2013, at 3:39 PM, stevenatorr wrote:

    AWW you ford lovers just mad. for 1 GM paid all debts and ford still owes for there bailout $$ and the $6 billion credit line and $$ from previous loans. GMC is twice the truck a POS ford will ever be. i see junk fords broke down all the time. trying to decide what is worse a dodge or ford. i see dodges broke down but i see more fords than dodges broke down. the ATLAS will be a POS like the RAPTOR is. ford is fail after fail. cry all you want but my GM's will outlast your garbage fords. i have had fords and nothing but breakdowns and a wallet raper. i know since i have had them. Atlas is a queer lookin tinker toy like all fords are. jokus and powerjoke haha.

  • Report this Comment On June 16, 2013, at 5:00 PM, BigDfromtheD wrote:

    Some GM lovers need a reality check.

    First, Ford did not take a bailout from the government.

    Second, it owes billions and is payiing these lons off unlike GM. GM borrowed billions, went bankrupt so it DID NOT have to pay them back stiffing the bond holders for the whole amount in the process. AND then gets more money fromt the the government in return for stock. The gov needs to sell the GM stock it got in return for the bailout for a LOT more than it is worth today for the taxpayers to break even.

    Third, given GM owners lack of knowledge about one and two above, and their propensity to go for foul language and insults tells volumes about them. Their opinions about quality and styling are likely similarly lacking a factual basis.

  • Report this Comment On June 16, 2013, at 6:27 PM, bcweir wrote:

    The facts are that despite a stock sale recently, GM is as of June 13, still 14 billion dollars in debt to US taxpayers.

    Also, Ford did not take ONE SINGLE CENT in bailout money from US taxpayers. Period. Ford took out a line of credit in 2007 in what turned out to be a very insightful prediction that the market was about to take a downturn in a few years, and Ford prepared well for it.

    What really saved Ford is that they got rid of that disastrous Jacques Nasser and put in Alan Mulally instead. Alan Mulally restored a lot of good will to Ford customers, and is largely responsible for a large number of incredibly popular Ford products, including the resurrected Taurus, the new Fusion, the Ecoboost engines, the redesigned F-150, and the new Focus and Fiesta. All of those products were shepherded until Mulally's and Bill Ford's watch.

    Some of the auto journalism pundits, who seem to be somewhat heavily vested in GM stock from their writings, are pleading for buyers to take another look at the 2014 Chevy Silverado. I've taken what is now my FIFTH look at it and have come to the same conclusion: it's STILL ugly, and it's still a far less preferable product than either the Ram or the 2009-present F-150. Ford's new Fusion is still a better product than Chevy's hastily revised Malibu.

  • Report this Comment On June 16, 2013, at 8:21 PM, fryhead wrote:

    GM owners are blind.GM could make junk and they would still buy it.I am not saying they are not good trucks but I know people that will not look at anything else.Closed minded!!!!

  • Report this Comment On June 16, 2013, at 8:41 PM, spursup wrote:

    I have 2000 gmc that started rusting at four years old and 70k miles I have a 1990 ford 3/4 ton with 53 k on it. ford didn't get any of the bailout they were solvent .. years ago when the govt bailed out dodge the ammunition plant I worked at , the base wher ei drilled . the bases I would be sen t to on wet weekends all had brand new dodges.. talk about preferential treatment ..you owe us money we will buy your trucks so you can pay us back ..

  • Report this Comment On June 16, 2013, at 10:18 PM, LanceKTM950 wrote:

    I am a supplier to GM-Ford-Dodge and I drive Toyota trucks tho I could buy from the big 3 at a substantial discount. None of them last as long or are as well built and designed as the Toyotas, and I abuse the heck out of them. The big 3 dealer experience sucks, they still don't have a clue about customer service or the total customer experience and probably never will. Plus, my Tundra has substantially more US content than my employee's Silverado does!

  • Report this Comment On June 16, 2013, at 11:21 PM, Musicareme58 wrote:

    Well. Ford may be better at making money but I was a service advisor at new car dealers for years. Ford trucks and their cars were junk. The trucks were better. GM made better trucks but even they had problems. I have had five Suburbans and two Chevrolet Silverados . I've driven Ford trucks. They have always been cheaper. Hence more people can afford them. Chevrolet and GC trucks are the best. I will say Ford improved their car lines faster than GM but I'm sticking with GM.

  • Report this Comment On June 17, 2013, at 9:47 AM, NineD930thTA wrote:

    Ok there is a lot of WRONG information here thateds to be spelled out.

    The Atlas WAS A CONCEPT TRUCK! Its not a real truck that will be coming out! It was made of solid aluminum. Thats an $80,000 vehicle right there. How many people can pay $80,000 for a half ton truck? Not many can and nobody with a brain would.

    Ford borrowed $26 Billion not for insight because they saw the bad times coming. They borred $26 Billion because they were bankrupt but the credit markets werent frozen. They were soo bad off they had to put up their logo for the loan. That wasnt insight it was pure luck.

    Ford actually owes the US taxpayer $26 Billion plus another $4 Billion because they refinanced that $26 Billion loan with the US treasury to get a lower rate and get their credit back up to investment grade. They also borrowed money from DOE to build fuel efficient engines. Neither loan has been repaid any money.

    Ford is swimming in long term debt. All Mullaly has done was took their current debt problems and pushed them back hoping to figure things out before then. Long term debt Ford has over $100 BILLION! INSANE!

    GM doesnt owe the taxpayer anything. The tresury owns stock in the company and they are choosing to sell it at a loss. Not anything GM can do about that. If you look at the value of GM and how much cash and short term investments they have on hand their stock price basically suggests the brands GM have and PPE and worth nothing which isnt true. Investors are idiots. GMs stock should be around $60 a share. Its a wonder nobody has bought GM out to break it up and sell off the parts because they could make money doing that and when that can be done a stock is under valued.

    As to the claims Ford trucks are better if they are soo much better why are SIlverados the longest lasting trucks? Ford sells more but there are more Chevys still on the roads and its not because Ford owners abuse their trucks and Chevy owners dont I see a lot of Ford truck owners that do not need trucks yet buy them anyways.

  • Report this Comment On June 17, 2013, at 9:49 AM, NineD930thTA wrote:

    Lance that Tundra doesnt have more US content than the Sierra/Silverado. The Sierra/Silverado has 67% US/Canadian Content and 96% north American content total. The Juntra isnt even close to that.

    And Toyota trucks are flat out trash. They cant tow as much cant haul as much and their gas mileage is a joke.

  • Report this Comment On June 17, 2013, at 9:52 AM, NineD930thTA wrote:

    Spursup youre a liar plain and simple. GM has a rust warranty of 5 years 100,000 miles. If you had rust it would have been covered by your warranty and replaced. Beyond that I have NEVER heard of a GM product having rust in 4 years. You can try to make something rust and not even achieve that goal in 4 years.

    Me thinks youre a Ford gomer trying to make the GM stuff sound bad.

    Before any of you bash the new trucks drive them and be prepared to be blown away. They are soo quiet you can hardly hear the engine start.

  • Report this Comment On June 18, 2013, at 7:01 AM, TMFMarlowe wrote:

    @NineD930thTA, your comments on Ford's debt are way off-base. I don't know where you're getting those "facts", but it's from someone who doesn't know how to read financial statements. Ford has only slightly more debt than GM at this point, and it's very well-managed and not at all a concern.

    But you're right that the new GM trucks look like a big step forward.

    Thanks to all for reading.

    John Rosevear

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