GM Ahead of Schedule in 2013 Truck Sell Down

Despite lingering effects from the recession, automotive sales continue to enjoy a healthy spike.

In fact, General Motors is reporting it’s ahead of schedule in selling down the remaining supply of 2013 model year trucks. Chuck Stevens, the company’s chief financial officer, said GM has sold at least 20,000 more trucks than expected, making for a smooth transition to 2014 models.

In April, production on the 2014 GMC Sierra (and Chevy Silverado) crew cab pickup trucks began in earnest, and the vehicles are still making their way to more dealerships across the country. Currently, around 85 percent of GM’s truck sales are 2013 models, but that number is expected to taper off as the new trucks become more widely available. The 2014 models are already earning significantly higher transaction prices than their predecessors, though that’s expected to taper off as well.

With their redesigned trucks, GM expects to raise their profits by $1 billion per year and lessen the gap with Ford, who are also expected to release a line of new F-series trucks in 2014. One important way GM hopes to accomplish this is through new and improved safety features. While the 2013 trucks received four-star ratings from the National Highway Traffic Safety Administration’s crash tests, their 2014 trucks are the first pickups to receive five stars since the NHTSA raised its standards in 2011.

The 2014 Silverado 1500 and High Country, and the GMC Sierra and Sierra Denali 1500 can officially be called the safest pickup trucks on the market. While automakers have historically been slower to add safety features to trucks than they are to family vehicles, these pickups now offer backup rear cameras, six air bags, and optional safety features such as forward-collision alert and lane-departure warning.

This all points to the second half of 2013 being better than the first for GM. In July, they reported a net income loss of 19 percent due to lower sales in most of Asia and the cost of their 2014 trucks. But a strong demand for pickups in the United States has offset any pressure to lower the price of their existing 2013 models through greater cash incentives. GM’s transaction price has actually risen 5 percent to an average of $10,000 for every pickup.

Clearance sales on the 2013 trucks are only now starting to pop up around the nation, and the automaker is being praised for the impeccable timing of its roll-out. Or is it just sheer luck? In July, they began their 2014 ad campaign on television stations in Texas, where one out of every six pickup trucks is sold. It’s safe to say GM knows what it’s doing.