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Is GM Running Short of 2014 Chevy Silverados?

By John Rosevear - May 30, 2018 at 3:59PM

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Reports suggest that one of GM's suppliers is having trouble keeping up. Is the Silverado's launch in trouble?

Demand has been brisk for the all-new 2014 Chevy Silverado. But is GM having trouble keeping up? Photo credit: General Motors.

General Motors (GM -2.94%) made a tremendous effort to ensure that its launch of the all-new Chevy Silverado and GMC Sierra pickups -- GM's most important products -- would go smoothly. All appeared to be going exactly as GM planned -- but now, there are reports that the 5.3-liter V8 engines used in the new pickups may be in short supply.

Sales of GM's pickups were down last month, and Ford (F -2.39%) was able to gain market-share ground. That's a big problem for GM, but it may not be a GM problem: Bloomberg has reported that the problem lies with a supplier that hasn't been able to keep up with demand. 

But as Fool contributor John Rosevear points out, it doesn't matter where the problem lies -- in the face of stiff competition from Ford and Chrysler, GM needs to get it fixed before its new pickup's strong sales momentum stalls.

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