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Auto blog
Chevy, GMC and Ram dealers are worried they'll run out of new pickups
Wed, May 6 2020One of the unexpected side effects of the ongoing coronavirus pandemic is a shortage of pickups at Chevrolet, GMC and Ram dealers. Supplies are running out, and the factories that build these trucks remain closed. Stores across the nation began increasing incentives in March, when the first stay-at-home orders were issued, in a bid to continue luring buyers into showrooms. They also launched online sales channels, or expanded their existing digital business. Sales nonetheless plummeted in April 2020, but in-demand vehicles, like the Ram 1500 and the Chevrolet Silverado, are still selling relatively well thanks in part to the aforementioned incentives. Pickups outsold sedans for the first time in April 2020, according to The Detroit News, by 17,000 units. The problem is that General Motors, Fiat Chrysler Automobiles (FCA), and Ford temporarily closed their factories in March. "The pipeline is very dry," said Mike Maroone, the CEO of a large dealership group named Maroone USA, in an interview with Automotive News. He told the publication his Chevrolet stores are sitting on a 30-day supply of the Silverado, which is one of America's best-selling vehicles. "That is a problem for us," he concluded. Coronavirus-related lockdowns and factory closures compound problems already faced by dealerships who represent General Motors-owned brands. They entered 2020 with a thinner inventory than a year earlier due to the 40-day United Auto Workers (UAW) strike that paralyzed the company late in 2019, and the 0%, 84-month offers announced in March have sapped supply. Ram wasn't affected by a strike, but it has relied heavily on generous incentives to move trucks off lots. Ford, on the other hand, limited incentives to 2019 models. Inventory levels differ greatly from region to region. The national average for the Silverado stood at an 82-day supply in March 2020, down from 120 in March 2019. Ram stores had a 114-day supply of the 1500 (compared to 134 a year earlier), while Ford bucked that trend with a 111-day supply versus 84 in 2019. Don't panic if you're in the market for a truck; we're not facing a complete drought. Automotive News added that America's light-duty pickup inventory could fall to 400,000 units by the end of May, and drop further to 260,000 units in June. For context, there were about 700,000 light-duty trucks in stock in May and June of 2019. That's unquestionably a sharp drop, but there will still be over a quarter of a million trucks to choose from.
2016 Chevy Camaro leaked on CNBC
Fri, May 15 2015It seemed inevitable. Eventually some outlet would get access to fully uncovered pictures of the sixth-generation 2016 Chevrolet Camaro and let them loose early. Embargoes break. All. The. Time. And for this round, credit goes to CNBC's Squawk Box. The program, according to the GM Inside News forums, had been talking about the new Camaro "all morning," when it dropped a trio of images of the new muscle car. Consider this, then, our first full look at the 2016 Camaro, a car we detailed extensively earlier this morning. In general, the leaked images confirm much of what we discussed in that post regarding the car's looks – an evolved style, with a slim grille up front, a rounded tail, and a very short rear deck. Check out the leaked images, give our Camaro round-up a read, and strap in for tomorrow's big Camaro reveal.
GM program sees dealers taking on way more loaner cars
Wed, Dec 17 2014Given 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.























