2004 Gmc Yukon Xl on 2040-cars

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GM can't keep up with most popular pickup orders

With the market for pickup trucks at its best since before the recession, General Motors can't afford any hiccups with the launch of its new 2014 Chevrolet Silverado and GMC Sierra twins, but it sounds like the popularity of V8-powered trucks is causing some supply-chain issues. Bloomberg reports that GM is experiencing a shortage of 5.3-liter V8 engines because an unnamed parts supplier has been unable to keep up with demand. This is leading GM to restrict the number of V8 Silverado and Sierra trucks that Chevrolet and GMC dealers are allowed to order.
Although it's unclear how long it will take to resolve the parts shortage, GM doesn't have much time to sort it out, as a new Ford F-150 looms on the horizon. At launch, GM's fullsize trucks were offered only with a base 4.3-liter V6 and the 5.3-liter V8, but a burlier 6.2-liter V8 will be available soon. Interestingly, at least at the moment, GM truck buyers don't seem as willing to downsize to V6 power as buyers of the F-150, which gets some 42-percent of its sales from trucks equipped with its EcoBoost V6 engine (not including the normally aspirated base V6).
Working out the kinks in the Silverado and Sierra's supply chain couldn't be more important to the health of the company. Full-size pickups are a huge profit driver - in 2012, the trucks were said to make up about two-third of GM's total profits.

GM profits threatened by glut of pickups

Automotive News reports that General Motors may slash production or ramp up discounts in order to deal with an oversupply of pickup trucks. GM currently has more than double the standard supply of pickups, and the vehicles are threatening to dampen the automaker's profits for 2013. Typically, automakers try to sustain a 60- to 75-day supply of vehicles, but GM is currently loaded with a 139-day supply, as of last month. At the end of November, the automaker was sitting on 245,853 units.
The manufacturer says that it will adjust production accordingly before laying any incentives on the profitable pickups. Even so, there's some concern that the inventory swell could hurt the roll-out of the next-generation Chevrolet Silverado and GMC Sierra. GM actually began slowly stepping back production in August, but it's clear the company will take further action as it heads toward the end of the year and into the next. Analysts predict the automaker could reduce pickup manufacturing by nearly half in the first quarter of 2013.
That still may not be enough to keep GM from laying extra cash on the Silverado and GMC Sierra. While the company's incentive spending was down in November compared to the same month in 2011, both the Ram 1500 and Ford F-150 saw double-digit percentage increases in sales last month while the Silverado and Sierra numbers slid compared to a year prior. Incentive spending could help move more trucks and add some balance to the GM inventory surge.

GM recall woes continue with 662,000 pickups trucks and Cruze sedans

General Motors can't seem to get its name out of the "bad news" column. Two more recalls were announced late Friday evening that will see The General calling in 490,200 fullsize pickup trucks and SUVs, along with 172,000 Chevrolet Cruze models.
For those keeping track, General Motors has issued recalls for an alarming 4.8 million vehicles so far since last month.
The Chevy Silverado 1500, Tahoe and Suburban, GMC Sierra 1500 and Yukon models from the 2014 and 2015 model years are being recalled for a flaw in their transmissions wherein loose oil cooler lines may cause a fire. The automaker said in a statement (see below) that it knows of three incidents of loose transmission lines causing problems, but no injuries. We can't confirm whether it was this transmission issue that caused the widely publicized blaze that consumed a 2015 GMC Yukon that was being test driven in California.