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GM urges patience as Silverado falls to No. 3


silvrsvt

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On 6/24/2019 at 8:27 AM, rperez817 said:

I understand it just fine sir. GM and Ford have different strategies for revenue vs. profitability with their LD full size pickup trucks. With Silverado and Sierra, GM wants to maximize profitability even it means lower sales volume, and lower revenue. With F-150, Ford wants to ensure the highest volume of sales possible, meaning greater revenue. That means they are willing to accept lower profit margin and do more fleet sales than GM.

GM's retail consumer focused marketing strategy for their new full size pickup trucks and the staggered launch cadence for those trucks paid off in Q2 2019. In the Q2 earnings report released today, GM reported higher income compared to Q2 2018 despite lower revenue. This is contrast to the sharp income declines experienced by some other automakers in the last reporting period like Ford, Nissan, Daimler, etc.

GM CEO Mary Barra said "Our results demonstrate the earnings power of our full-size truck franchise, with more upside to come." https://media.gm.com/content/dam/Media/gmcom/investor/2019/aug/gm-q2-2019-earnings-press-release-080119.pdf

"GM’s cadenced full-size pickup truck launch remains on track, with sales of the all-new Chevrolet Silverado and GMC Sierra light-duty crew cabs up double digits year- over-year  for  the  second  straight  quarter.  Overall,  GM’s light-duty pickups gained nearly 3 percentage points of retail  share  from  Q1  to  Q2,  and  remained  the  retail market  share  leader  in  the  segment  (J.D.  Power).  Full production of all cab styles—including more affordable regular  and  double  cabs—started  in  March,  helping normalize availability of the entire lineup."

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