Silverado down 46%
Sierra down 47%

I guess that's what you get for having old, stale product and weak incentives.

 

You got that right, that's Ford and GM biggest problem they take to long to update there products. You can hate GM or love them but we need both American company's to get back on track hopefully this changes when the new Silverado comes out.

 

I think it has much more to do with the price of gas rather than anything else.

 

You don't happen to have Fords and Dodge's results too by any chance?

 

F-Series -9.7%
Ram -1%

 

Remember that the comparison is year to year. Last year we were in the middle of the employee purchase for everyone program, and the Silverado hit an all-time sales record for one month deliveries. GM sold 109,000 Silverados in the month of June '05. vs. 58,000 in June of '06.

Link

Ford sold 65,000 F-Series in June '06, vs. 72,000 in June of '05.

Link

 

I know, and GM was predicting a 30% decrease. But this is really huge.

 

It's due to the huge 'Employee Discounts' going on last year at this time, and the new pickups that will start coming out this fall. All the GM guys I know are holding off until the new truck comes. As bad as Explorer and Expedition sales are right not, the new Tahoes Yukons are selling very well.

 

Didn't Ford beat that record?

 

Not a year ago, but they might have at some point. June '05 was an all-time sales record for the Silverado itself- I can't say how that stacks up against other brands.

 

I don't think comparing same month sales has a great deal of meaning because of the differences in conditions year to year. The sales for GM trucks last year were skewed up last year due to the bargain deals and the sales this year are down due to the upcoming replacement of the trucks. I think you will find a surge in GM sales (like the Tahoe did) when the new trucks are introduced due to diehard GM customers that have been waiting for something different and new. A good friend of mine really likes my F150 but is going to buy the new GMC as soon as they are released regardless of whether they are better than the Ford or not. When I asked him why, he said that he has always bought GM and always will.

 

That's all well and good, but GM has to pay the June light bill no matter how many they sell.

Also, you don't just cut 47% of your production at the drop of a hat.

There are going to be a ton of leftover 06s pretty soon, and GM will have to do something to move them out.

 

Here in N. Texas we are starting to see the effects of GM's overstock of fullsize pickups. They are starting to get their crewcab silverado in the price range of the supercrew on the low end models. With the owner loyalty we are seeing $31,000 supercrews offered @ $18,887. Typically only one at that price and you have to work like the dickens to get it purchased for that. Until the last week or so Th GM products were consistantly 22-23,000 for the teaser truck in their ads. I have noticed dealers offering them in the low to mid 19's now. I don't know or really care how the Silverado compares because dtmtbf= Daddy Taught Me To Buy Ford.

 

Don't confuse production and sales- not at all the same thing.

 

You can't sell if you don't produce.

Total production is based on predicted sales. If sales fall flat, production has to follow eventually. But there is significant lead time. You don't shut off the pipeline like a valve. Plus, we are all aware that GM has significant legacy costs that influence production almost as much as sales.

I know that GM cut production in Q1-Q2 in anticipation of slower sales, but I doubt that it anticipated quite that much of a drop.

If you have access to GM's production figures, check out June '06. My guess is that they make more that 58,000 Silverados. I'm no human abacas, but I've got $20 that says GM had more 2006 Silverado on July 1, than it did on June 1.