Has General Motors Company (NYSE:GM) Run Out Of Pick-Up Trucks?

Posted by Lynn Eisler October 4, 2013 0 Comment 970 views

General Motors Company (NYSE:GM) has probably committed a strategic blunder. Looks like the company got fooled by the sales-potential of the recently spruced-up V-6. While it was training the spotlight on this vehicle, the V-8, which is definitely the more popular of the two, got nudged into the sidelines. The company just didn’t order a sufficient number of parts for the latter.

Wrong timing

Resultantly, the GMC and Chevrolet dealers are only getting around 80% of the total number of Sierra’s and V-8 Silverados they order. The company says that this situation is not a permanent one. Though they are not being specific in terms of deliveries and dates they are saying that the shortage will not really last for too   long. It goes without saying that this shortage is detrimental for the company. The timing is all wrong as truck sales have been on the rise.

Immediate requirement

Many tradesmen and other consumers have somehow managed with their old trucks right through the recession. Now that the economy is looking up a little bit, they are all geared-up to buy spanking new trucks for their businesses. Personal-use buyers may not be in such as hurry but business folk cannot do without reliable vehicles and upgrading the transport vehicles is something that they prioritize.

Irrecoverable losses

Any sale that General Motors Company (NYSE:GM) loses because it did not have the right engine at the right time, is one sale lost. Work-users tend to keep their vehicles for a longer period of time. And so, if they are not able to acquire a GM truck when they need it, they might just settle for Ram or a Ford. That immediately tales them out of the market for a long time and the chances of them permanently transitioning to another brand always exist.

About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

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