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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.

General Motors reportedly considering small electric pickup

General Motors is considering adding a small entry-level model to its range of electric pickups, according to a recent report. The carmaker is currently showing a prototype to a select group of customers to gather feedback about the model before executives decide its fate. Industry trade journal Automotive News claims that it saw the pickup during a workshop organized by General Motors and describes it as being "smaller than the Ford Maverick and the Hyundai Santa Cruz." For context, the Maverick stretches about 200 inches long, 73 inches wide, and 69 inches tall, so it's around 12 inches shorter, 11 inches narrower, and 10 inches lower than the recently-unveiled Chevrolet Colorado. It sounds like this little GM truck would be closer in size to the Brazilian-market Chevy Montana, pictured at top. But unlike the Montana, the model that Automotive News got a look at had two doors, a "low roofline," a four- to four-and-a-half-foot cargo box, and a design described as futuristic and sporty. If launched, the yet-unnamed pickup would be marketed as an "affordable" EV with a base price pegged under $30,000. However, that's a big if: the pickup — whose name hasn't been announced — hasn't been approved for production. "We're creating these to get a reaction and then to try to modify it or move on," Michael Pevovar, the director affordable EV and crossover design for Chevrolet, told the publication. "The input may come back that it's just too small, and that's okay," he added. If it turns out to be too small for buyers, General Motors hasn't ruled out building its entry-level electric pickup on a different architecture to make it a little bigger. It's too early to tell where the electric pickup would slot in the General Motors portfolio if executives approve it. Chevrolet immediately comes to mind, especially considering the sub-$30,000 price point. The model would make more sense with a bowtie on its front end than with a Cadillac emblem, GMC's trucks are normally positioned higher than Chevrolet's, and Buick hasn't built a pickup in many decades. Similarly, there's no word on when it would enter production or where it would be built. With that being said, there's very clearly a market for affordable, small pickup trucks. As of the third quarter of last year, Ford had sold more Mavericks than it had the Expedition or the Ranger. Hyundai hasn't sold as many Santa Cruz trucks, but it's still not too shabby, having beaten out the Venue and Accent last year.

GM removes start/stop from full-size trucks and SUVs with V8 engines

GM is removing start/stop technology from a number of its popular full-size SUVs due to the ongoing chip shortage. This follows the removal of cylinder deactivation technology from some of its trucks, which was also due to the chip shortage. GM Authority first reported the news, but we’ve just confirmed everything with a GM spokesperson.  The following 2021 model year vehicles will be affected: Chevy Tahoe, Chevy Suburban, GMC Yukon, Cadillac Escalade, Chevrolet Silverado 1500 and GMC Sierra 1500. Only versions of those vehicles built with the 5.3-liter V8 or 6.2-liter V8 and mated to the 10-speed automatic will have the tech removed from them. Only vehicles manufactured on or after June 7 will be affected. “By taking this measure, it will enable us to continue production of our high-demand full-size SUV and pickups as the industry continues to rebound and strengthen,” GM said in a statement. Those who ultimately buy one of these vehicles without start/stop technology will receive a $50 discount off MSRP for their troubles. Losing this fuel-saving tech could be a big negative for some, but we know many folks turn it off anyway. Not having to press the button to deactivate start/stop every time could actually be a positive if youÂ’re part of the camp who does that already. 2021 Cadillac Escalade Sport Platinum View 27 Photos On the downside, GM says “most of the affected vehicles will experience a minor reduction in fuel economy.” We donÂ’t have revised window stickers in hand to know how each model will be affected, but any 1 mpg reduction will be rather impactful for vehicles rated as low as these trucks already are. Any reduction will be seen in the city mpg rating, so take the kind of driving youÂ’re going to be doing into account before purchasing. When it comes to greenhouse gas compliance rules, GM says it doesnÂ’t foresee this impacting the companyÂ’s average fleet score. It also intends to begin adding start/stop back to these models as soon as possible, but there will be no retrofit effort made to fit the tech to vehicles already built without it. “Our supply chain organization continues to make strides working with our supply base to mitigate the near-term impacts of the semiconductor situation,” GMÂ’s statement reads. “GM continues to leverage every available semiconductor to build and ship our most popular and in-demand products, including our highly profitable full-size trucks and SUVs for our customers.