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GM program sees dealers taking on way more loaner cars

Given the volume of vehicles we're talking about, this is a significant development for GM's bottom line. Bring your car into the dealership for service, and you may need a loaner car in exchange. And with so many recalls being carried out, that means a lot of loaners – especially at General Motors dealerships. That could be one of the reasons why GM is massively expanding its loaner fleet program. While many Chevrolet and Buick-GMC dealerships have an on-site rental car location operated by a third party like Enterprise (which may or may not provide a GM vehicle), others manage their own loaner fleets. But while the range of dealerships operating such fleets was once small, reports Automotive News, the number has been growing rapidly: from the locations responsible for only 20 percent of those brands' sales two years ago to about 90 percent today. The impetus for that growth comes down to a massive expansion of GM's Courtesy Transportation Program. The initiative encourages dealers to ramp up their loaner fleet to a maximum size determined by GM, with a mix determined by the dealer itself, so that a showroom in Texas can be bolstered with a fleet of pickup trucks and a dealer in California can employ more Volt and Camaro Convertible loaners. The dealership gets a $500 credit for each vehicle its puts in its fleet, and can use those vehicles as loaners for service customers, as multi-day test drivers or to rent out separately. The vehicles remain in the dealer's fleet for 90 days or 7,500 miles, then they can be sold as used, but with new-car incentives. The dealer gets a fleet of loaners, customers get to use the loaners, try out a new car overnight or buy a barely used car with attractive incentives, and GM gets to clock more sales. But therein lies the kicker: the automaker counts the dispatch of the loaner new vehicle to the dealership as a new-car sale, which could end up distorting its sales figures. Counting loaner vehicles as sold vehicles is something of an industry-standard practice, but given the volume of vehicles we're talking about, this is a significant development for GM's bottom line. One dealership - Paddock Chevrolet in Kenmore, NY, for example - had no loaner fleet two years ago, but now runs a fleet of 50 vehicles. Multiply that by the 4,000 or so dealers GM has across America and you're talking about the potential for hundreds of thousands of these sorts of sales.

2020 GMC Sierra Review & Buying Guide | The same but different

For the most part, the 2020 GMC Sierra 1500 and the Chevy Silverado are very close siblings. And with the more modestly equipped Sierra SLE and SLT models, choosing between the equivalent Chevy and GMC largely comes down to styling preference and whether you got a better deal at the GMC dealer. They’re almost identical twins. Almost. Because despite the shared DNA, there are differences in terms of model choice. There's no GMC equivalent to the cheaper Custom Trail Boss, for instance, but there is the high-dollar off-road-oriented AT4 that goes beyond the Chevy LT Trail Boss with more equipment and the availability of GMC's unique MultiPro tailgate and CarbonPro carbon fiber bed. Those are also available on the GMC Sierra Denali, which further differs with an adaptive suspension not offered by Chevrolet that seriously improves the ride comfort and handling composure of GM's full-size trucks. GMC therefore makes a compelling case for itself if you're willing to spend more for your truck, but having said that, the range-topping Sierras also don't go above-and-beyond in the same ways as the ritzy Ram 1500 and Ford F-150 trim levels do to provide a proper luxury truck experience. The new Duramax diesel engine at least stands out, but otherwise the Sierra doesn't offer a lot that others can't match or better (even within the GM family). What's new for 2020? CarbonPro Editions debut for the AT4 and Denali trim levels. These include the CarbonPro composite bed and a Kicker audio system in the MultiPro tailgate. The AT4 versions also gets some unique exterior trim. Mechanically, a 10-speed automatic is now paired with the drivetrain combo of 5.3-liter V8, Dynamic Fuel Management and four-wheel drive. Aiding visibility are newly available trailer tow mirrors, a bed-view camera, and a high-def 360-degree camera system with trailering elements.  What's the interior and in-car technology like? Like its Silverado sibling, the Sierra's cabin is its least compelling and competitive attribute, falling far behind the Ram 1500 and Ford F-150 in terms of quality and design. The dash is drab and frankly ugly in every trim level, but the cabin is particularly damning in the Sierra Denali. Its black vinyl "stitched" onto the black dash and some token strips of wood trim slapped onto the center console and doors just aren't enough to create the sort of high-dollar ambience truck buyers can find elsewhere.

United States drivers buying fewer Mexican-made cars

Crossovers and pickup trucks are not only growing in market share, they're also more profitable than cars. A crossover on the same platform as a sedan retails for thousands more, despite similar components. It's one of the reasons we've seen automakers rapidly shifting production of their sedans and hatchbacks to Mexico, where cheap labor preserves the thin profit margins on these inexpensive vehicles. But as the market continues to shift in the United States, Mexico is getting burned by its lack of product diversity. The country's auto exports, which are heavy on cars, suffered a 16-percent drop last month, Automotive News reports. In total, year-over-year exports fell from 233,515 to 197,020 last month, while year-to-date exports are down by 7.4 percent, from 922,029 to 854,118. The number one culprit? America – which usually accounts for 75 percent of Mexico's exports – and its appetite for crossovers and pickup trucks bolstered by cheap gas prices. While Mexico does build some light truck models – AN specifically calls out the Ram 2500, Honda HR-V, GMC Sierra, and Toyota Tacoma as export leaders – the vast majority of vehicles rolling out of its factories are sedans and hatchbacks. In fact, the three biggest drops in Mexican exports came from companies whose south of the border factories only build cars – Ford (Fusion/Lincoln MKZ and Fiesta), Mazda (Mazda3), and Volkswagen (Golf and Jetta). Mexican Automotive Industry Association President Eduardo Solis told AN the export shortfall will likely be sorted out sooner rather than later, thanks to a pair of new factories – a Kia car factory and an Audi SUV plant – that are coming online by year's end. The two facilities will add around 100,000 vehicles to the country's export totals, which Solis said should leave the industry on the verge of breaking another export record in 2016. But how sustainable will these record-breaking years be? Slapping an "Hecho en Mexico" sticker on a new German SUV won't be enough to change the fact that Mexico's product mix is tilted too heavily towards body styles that are not growing in volume. Mexico's record-breaking export years probably aren't at an end, but we'd argue they're certainly under threat. News Source: Automotive News - sub. req.Image Credit: Omar Torres / AFP / Getty Images Plants/Manufacturing Ford GMC Honda Mazda RAM Volkswagen Truck Crossover SUV Mexico