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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.

Average transaction prices climb to a record $36,270 in January

The automotive sector made a hash of the numbers last month, a mess of pluses and minuses clogging the transaction-price charts according to Kelley Blue Book. The overall industry rose one percent, even though buyers bought fewer cars and light vehicles in January 2018 vs 2017 using the selling-day adjusted rate. Due to January transaction prices rising to $36,270, a record for January, the value of new vehicles sold climbed more than $1 billion compared to January 2017. KBB's transaction prices don't include customer incentives, which changes the complexion slightly; average incentive spending rose to just over ten percent. The average transaction price in December 2017 was $36,756, so January dropped a bit - nothing unexpected, with the month annually blamed for "January doldrums." More revealing is the fact that the average transaction price in January 2017 was $34,910. This year's plumped-up figure came courtesy of the continued shift to crossovers, SUVs, and light trucks, which shouldn't surprise anyone who's read an automotive blog in the past 20 years. That category comprised nearly 70 percent of new vehicle sales for the month. Some manufacturers profited more than others, though. Fiat Chrysler managed 12.8 percent fewer sales in January compared year-on-year, but the company's vehicles sold for $1,300 more. The Ford brand suffered a 6.3-percent dip in sales, but brand transaction prices increased $2,000, while a Lincoln sold for $8,700 more on average. General Motors sold more cars and sold them for more money; overall GM transaction prices rose four percent, or $1,270, while a GMC traded hands for seven-percent more than in January 2017 and a Cadillac got $2,300 more on average. Of KBB's listed automakers, the Volkswagen Group got the most of out its customers, transaction prices rising at the German automaker by 5.6 percent to $42,243 in January 2018 compared to a year earlier. American Honda followed with a 4.3-percent increase to $28,991, GM in third at 4.1 percent to $40,313. Find your next car at Autoblog using our new and used car listings or the Car Finder tool. Broken out by segment, minivans rocked the table, transaction prices leaping by 7.9 percent to $35,380 compared to January a year earlier. Luxury cars boasted the next-highest rise, at 3.6 percent to $58,533.

GM announces four new recalls, 507k vehicles affected

428,211 of these vehicles are located in the United States, 57,706 are in Canada, and 20,956 are in other markets. In its seemingly never-ending string of recalls, General Motors today announced four new campaigns covering some 506,873 vehicles. 428,211 of these vehicles are located in the United States, 57,706 are in Canada, and 20,956 are in other markets. First up is the 2013-14 Chevrolet Cruze, which is being recalled because "the inflator in the driver's front airbag may rupture and/or the airbag may not inflate during airbag deployment," according to GM. This could shoot metal pieces of the inflator into the cabin, injuring occupants during a crash. What's more, GM says that if the airbag does not inflate, this could, obviously, increase the risk of injury to the driver. A total of 29,019 Cruzes are affected in the United States, with an additional 4,066 units being recalled in Canada. The largest of the four recall campaigns involves four-wheel-drive versions of the 2014-15 Chevrolet Silverado and GMC Sierra, as well as the 2015 Chevy Tahoe, Suburban, GMC Yukon and Yukon XL. A grand total of 392,459 vehicles are affected in the US, with 53,607 more found in Canada, and an additional 20,874 in other markets. Here, the transfer case "may electronically switch to neutral without input from the driver," GM states. The automaker adds that if this occurs while the vehicle is moving, power will not be sent to the wheels. On top of that, if the vehicle is parked, it may roll away unexpectedly if the parking brake has not been set. In smaller recall news, 4,794 2013-14 Chevy Caprice police cars and SS sedans are being recalled in the US. According to GM, "If the motor gear teeth become stripped, the wipers may not operate" in these models. Lastly, 1,939 2014 Chevy Corvettes fitted with the FE1 or FE3 suspension are being recalled in the US "to repair a possible insufficient weld in the rear shocks that could lead to a fracture and/or reduce the shocks' service life." In Canada, 33 additional vehicles are affected, as are 82 more 'Vettes that were exported to other markets. General Motors is aware of one injury regarding the Cruze recall, and is not aware of any crashes or injuries in the other three recalls. Scroll down for the automaker's official release. GM Announces Four Vehicle Recalls DETROIT – General Motors (GM: NYSE) today announced four safety recalls covering 428,211 vehicles in the United States.