You are here: Home / Industry News / Auto industry / GM Trucks Sitting on Lots as Americans Choose Fuel Efficient Cars

GM Trucks Sitting on Lots as Americans Choose Fuel Efficient Cars

July 22, 2011 by 22 Comments
Facebook Twitter Stumbleupon Digg Email Reddit Tumblr

Need proof that America is weening itself off conspicuous oil consumption?  Look no further than your local GM dealer.  Once there, you’ll find the Buick brand enjoying something of a revival, and – over at the Chevy dealer – you’ll find that GM’s Volt is selling out across the country, and Chevy’s 40 mpg Cruze is selling in huge numbers (the car topped US sales in June), but GM’s trucks?  Not so much.

Mark Frost, general manager of Jim Ellis Chevrolet in Atlanta, explained that dealers  “thought that this year would bring back the kind of economic activity that would translate into us selling more trucks.”  Now, however, dealerships like Frost’s are sitting with over 122 days of inventory, which translates to over 280,000 unsold Chevy Silverado and GMC Sierra pickups parked on dealers’ lots – enough (even by GM’s projections) to last through November.  Full-sized SUVs don’t look much better.  “It’s not happening,” he said.

So, what do you think?  Are we seeing a real, honest-to-goodness tuning point in American car-buying habits?  Are Americans finally evolving beyond our obsession with oversized vehicles and equating size with status and wealth, or is this just a temporary sign of the $4-per-gallon times?

Let us know what you think, in the comments.

Source:   Bloomberg

Print Friendly Version of this pagePrint Get a PDF version of this webpagePDF
Filed Under: Auto industry, Trucks Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , ,
About Jo Borras

I've been working in motorsports and tuning since 1997, with some the biggest names in the business. In 2008, the work we did on a hybrid/EV concept car attracted the attention of Gas 2 editors, and they invited me to join the team. I couldn't resist!

  • http://Web ziv

    The Chevy Volt actually ranked second in average days on the lot at 16 days, losing only to the Prius at 14 days, this spring. That is pretty impressive, but it will be more impressive if GM can keep it up with Volt sales when they are building 2,000 a month in the fall!

    • http://importantmedia.org/members/joborras/ Jo Borras

      That still only translates to 24,000 Volts per year – or about 10% of the number of pickups ON THE GROUND NOW at GM dealers.

      • http://Web ziv

        Point taken, but they claim they will be building 5,000 a month next year with almost 4,000 those being sold here in the US! Ha ha, that’ll fix your wagon.

        And those 4,000 will just 20% of the number of pickups on the ground now…
        Umm. Never mind.

        LOL

        But it will be nice if the Volt does actually continue to sell well when they are build more than the glacial production rate of the past few months.

        • http://Web ziv

          I really wish there was an edit feature…

        • http://importantmedia.org/members/joborras/ Jo Borras

          Keep in mind: at the same time they have thousands of GM trucks and SUVs taking up space on the lots, they’re still running shifts to build more of them.

          • http://Web sean

            Really? Then they must be crazy.

  • http://Web t_

    Guys, have in mind, that many of the pick up trucks are bought from businesse and they do some work, cars cannot. Maybe the slow growth of business is the main reason for the bad sales. If they are so bad overall.
    And speaking about a trend by giving an example with the volt, which sells in such a small quantities? The Volt is a good car, but the price puts it in the premium segment and we all know it is not the highest by volume.

    • http://importantmedia.org/members/joborras/ Jo Borras

      That’s a fair comment, but the majority of truck sales are to private individuals, and it’s these buyers (the “casual” truckers) who seem to be falling off. Businesses are still buying, it seems, if Ford and Chrysler’s numbers are to be believed (those companies are at 30-60 days’ inventory).

  • http://Web Nixon

    Or it could mean that the same inbred rednecks who buy up trucks in mass numbers, also hate GM because they equate GM with Obama and are buying Fords and Dodges instead.

    • http://gas2.org Jo Borras

      That is a VERY sharp observation! Great point!!

    • http://Web Tim Cleland

      “Or it could mean that the same inbred rednecks who buy up trucks…”

      Let me guess, you’re a liberal who thinks conservatives are intolerant of others.

      • http://gas2.org Jo Borras

        Tim, I don’t think that’s the point Nixon is making at all. Rather, I think it’s a safe bet that most “casual” pickup truck buyers (defined as “the kind that haul air 99% of the time”) have politically conservative leanings (at best) and rebel flag decals (at worst). Add to that the fact that Ford’s PR department has done a fantastic job of convincing people that GM took their tax money, and – for those same conservative-leaning buyers – it might be enough to draw a line from that GM dealer lot back to President Obama’s desk in the oval office.

        If that’s the case, and public perception among those key pickup buyers really has shifted from “GM = General Motors” to “GM = Gub’mint Motors”, then Chevy truck dealers are in serious trouble.

      • http://Web Nixon

        Tim,

        I’m the “inbred redneck” who uses a 3/4 ton diesel to tow my horse trailer that I was talking about. I was making a joke at my own expense, while also trying to make a serious point.

        But Jo Borras totally nailed the serious point I was trying to make.

      • http://Web Nixon

        2nd try….

        Tim,

        I’m the “inbred redneck” who uses a 3/4 ton diesel truck to pull my horse trailer. The joke was at my own expense, while I was trying to make a serious point about GM’s market share among potential buyers.

        Jo Borras nailed my serious point, jokes aside.

        GM really does have a huge PR problem with anti-Obama extremists who wouldn’t be caught dead driving in a pickup made by “Gubberment Motors”. I very much believe that this has impacted GM’s sales in that market demographic.

    • http://Web nixon

      To clarify, I’m the redneck I was referring to, with my 3/4 ton diesel American pickup.

  • http://Web Tim Cleland

    It should be more permanent this time around. After the last time gas was at $4/gal, it promptly went down to under $2/gal which could have lead people to believe it was just an anomaly. Now, with it back near $4/gal, people are starting to feel it’s real
    and permanent. Hopefully, they’ll wise up and make good choices for their next car purchase.

  • Pingback: Ford’s 3 cyl. Fiesta Coming Stateside – Gas 2.0

  • http://Web IndyBioDiesel

    Well if Chevy would build a light duty diesel 4×4 truck (and SELL IT IN THE UNITED STATES) I would buy it. I do not need or want a full size truck period. Had one, sold it and don’t miss it.

    • http://Web Nixon

      I agree. I would sell my 3/4 ton diesel truck, and replace it with any truck that was sold with any of the 4-liter light duty diesel engines that they’ve already developed.

      They already have them developed, they just don’t want to lose their massive profits they currently make on their HD diesels.

  • Pingback: Detroit Three Argue Washington Down to 54 MPG by 2025, Lower Standards for Trucks – Gas 2.0

  • http://Web Jim

    I am in the market for a new truck. Chevy or GMC.
    First of all,its obvious there were huge fleet cancellations based on the way the trucks were equipped.
    Second- GM has put big rebates to the customer-and enough spiffs to the dealer to push the trucks out.
    Trouble is getting the dealers to pass that on to the consumer to move some merchandise and get the production lines going again.
    When you play the old “shell game” and there’a nobody in front of your table to put their dollar down, everybody loses.

    • http://importantmedia.org/members/joborras/ Jo Borras

      I don’t think it’s “obvious” that there were such cancellations at all – purchasers at the dealerships looked at their history, equipped their trucks based on past sales, and ordered in quantities prescribed by GM … and they (the dealers, who are – it should be noted – the only direct customers GM has) got fleeced. As for the big rebates, that’s just more desperation from “old-think” GM. They can’t move the metal, they aren’t justifying their business moves, and they’re blowing their (huge!) bailout funds on bad, bad ideas.

      Right or wrong, though: there’s no need to play GM apologist here. Let GM do that.