A General Motors (GM) executive recently announced that the company is planning to increase its production of pickups and SUVs, by the time fall hits, in order to capitalize on a busy truck and SUV-buying season.
Alan Batey, North America President of GM, stated that the auto manufacturer is currently working hard to produce enough Chevrolet Silverados and GMC Sierras, and also recognised that the tight timelines may have cost them some sales.
Batey noted that the company had hoped they would have had more of an inventory currently, and that they have a slightly improved production plan for the latter half of the year, versus the first. He went on to state that the next half of 2016 is the most vital as it relates to truck sales, which generally account for 60% of the total sales for them, each year.
Autonews reported that a large portion of GM dealers state they could be doing better, if they received more pickups from the company’s factory. As recorded on July 1st of this year, there was an 83-day supply of Silverados, either making their way to stores or at dealerships currently, which is the same stock as 2015; while Ford dealerships had a 105-day supply of their F series pickups.
After increasing their market share, as it relates to full-size pickups in 2015, GM was out done for the first half of 2016 by FCA and Ford. Combined sales for the Silverado and Sierra trucks increased 1% through last month, to 380,118 pickups, steadying the pace of the F-series’ growth, which increased 11% to 395,244; and Ram, which enjoyed a 9% jump to 231,405.
However, Batey stated he feels positive about GM’s pickup and SUV momentum, which produces a significant amount of the company’s profits, annually. In fact, the auto maker recently reported a 31% increase in its 2nd quarter results, around North American operating, which is at an incredible $3.65 billion. This marks the best quarterly result, since its prior bankruptcy in 2009.
The numbers and record-breaking results seems to be in large part due to the company’s placement of bold pricing, as it relates to the Sierra and Silverado, despite the fact that the recent generation of pickups were released three years ago, with a significant revive for the model year, in 2016.
GM stated that the second quarter saw an increase of about $2,700 on average transaction prices, versus those in 2015.