Why the 2014 Chevrolet Silverado Is Making Dealers Angry

Critics have raved about the 2014 Chevrolet Silverado, but GM's prices may be driving away potential buyers. Photo credit: General Motors Co.

The launch of General Motors  (NYSE: GM  ) all-new Chevy Silverado and GMC Sierra pickups has gone very smoothly for the most part. That's impressive given the production volumes, the aggressive schedule -- and the huge importance of the new pickups to GM's bottom line.

But while critics have praised the new trucks, they aren't selling as well as expected, and that has some of GM's dealers concerned. The problem: GM is being stingy with discounts on its new trucks. That seems like a smart move to protect the General's profits -- but it may be costing GM sales as archrival Ford  (NYSE: F  ) has piled on the incentives.

How can GM placate its dealers -- and get sales of its new trucks going -- without sacrificing profits? In this video, Motley Fool contributor John Rosevear looks at GM's latest moves to try to jump-start its new trucks' sales -- and at whether Ford will continue to eat GM's lunch in this tremendously important market segment.

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  • Report this Comment On October 31, 2013, at 10:50 PM, Tommylee2 wrote:

    I have no love for General Motors since our leader handed it to the union on a silver platter and no matter how many discounts or incentives they offer I absolutely will not buy a GM product again. I am not alone on this as many Americans are fed up with Obama and anything he had his hands in and GM is one of the first corporations he took over and left the stockholders holding nothing but worthless paper. No, GM dealers you are not going to be seeing a rush to your front door any time soon to buy your pickup truck or your Volt or much else you offer. Maybe you need to ask Ford for a franchise so you can have a payday at your dealership.

  • Report this Comment On October 31, 2013, at 11:11 PM, CrazyDocAl wrote:

    As an investor GM is dead to me. Never buy a vehicle from them and I'll never own a single share.

    As for trucks, that's simple. The vast majority are bought by people who will not buy any other brand that their preferred brand. You can offer as many incentives as you want but all they will do is spur loyal owners to trade in earlier than they planned to but only to a degree.

  • Report this Comment On October 31, 2013, at 11:32 PM, andyco79 wrote:

    GM WILL be seeing me again. After many faulty Ford piles of crap. My Chevrolets have been the best vehicle investment I've made. You pay for quality. Ford needs to be exposed for their shotty quality. The GM dealers don't want to become Ford dealers because they wouldn't be able to employ enough service techs to service that crap. My local GM dealer was a Ford dealership and Ford closed him down to save money. Yeah, Ford really helped him. You pay less for a Ford in the beginning, but you'll spend way beyond that incentive with all of the repairs take it from one who knows all too well.

    As far as investing is concerned. GM's stock is dead??? Is that why after positive earnings were released on Wednesday their stock increased $2 per share and virtually stayed there through

    Thursday? Boy, when Ford's earning were released which were also positive, their stock price rose a little, still didn't get to $18 per share from $17 that it opened at and it even receded at the end of trading. It's stagnant. Ford are the shares that are dead. As an investor, you should be looking beyond the dollars, cents, and percents. You should also look at the product being sold. If it's poor, customers will go elsewhere next time and word will spread rapidly. When you no longer have customers, you no longer have sales, which means you're out of business. If Ford doesn't improve their quality and customer service this is what will eventually happen to them. Again, I know from experience. Also, the politics needs to be taken out of the stock market. If you're mad at the government then address is with them not with companies. I didn't agree with how GM's bankruptcy was handled either, but it's over and done with and you can't keep re-living the past. We have to move on from it. Life goes on.

  • Report this Comment On November 01, 2013, at 12:26 AM, pwkrp wrote:

    @Tommylee2, GM paid the bailout back, get over it. GM is now buying it's stock back from the government and we are making a profit.

  • Report this Comment On November 01, 2013, at 10:21 AM, elks42 wrote:

    @Tommylee2, "The failing economy, tightening credit and evaporating new-car sales counter-punched the auto industry late in 2008, leaving Chrysler and General Motors on the ropes and in need of immediate financial CPR. George Bush jumped in with a first round of financial support, with Barack Obama following through with more comprehensive assistance to the tune of $80 billion after being sworn into office." Just thought you should know some facts so your next rant can be somewhat accurate.

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