Aggressive competition led GM to boost incentives on the all-new 2014 Chevy Silverado -- but it's also quietly boosting the price, in a bid to preserve profits. Photo credit: General Motors.
Last month, sales of General Motors' (GM 0.11%) Chevy Silverado pickup fell almost 11% -- even as sales of Ford (F +0.89%) and Chrysler pickups posted solid gains. GM says that short supplies of its all-new pickup were partly to blame. But so were the fat cash-back incentives offered by GM's rivals, discounts that in Ford's case averaged nearly $5,000 per truck.
GM has been under pressure to improve its profits, and management has been reluctant to offer big discounts on its all-new Silverado pickup -- a model that was designed from the ground up to be both better and more profitable than its predecessor. But as Motley Fool contributor John Rosevear explains in this video, GM did boost discounts on its new pickup to respond to Ford -- while quietly boosting its new truck's sticker prices as well.
