GM proves it really understands auto market

[sgrizzle]

So.. the economy is tanking, gas prices are meandering up, demand for small cars is up, The US is throwing Billions at GM to keep them afloat until they can "adapt to current markets" so what does GM do?

They increase truck production...

http://www.autoblog.com/2009/02/03/gm-increases-truck-production-for-the-spring/

[jne]

quote:Originally posted by sgrizzle

So.. the economy is tanking, gas prices are meandering up, demand for small cars is up, The US is throwing Billions at GM to keep them afloat until they can "adapt to current markets" so what does GM do?

They increase truck production...

http://www.autoblog.com/2009/02/03/gm-increases-truck-production-for-the-spring/

Well the trucks ARE the only thing they make that is worth a damn.  I don't think it would be so crazy to increase truck production, as long as, they cease all car production.

[Townsend]

There's more money to be made with the trucks.

Availability for the commercial line means much higher sales.

There's a number of reasons for them to increase truck production.

[Conan71]

Trucks are still a high-demand item.  Hard to believe, but even with high fuel prices last year, the Ford F-series was still the highest volume selling vehicle in the U.S. last year.

I've got a lot more faith in Ford making it through the morass than GM at the moment.

[sgrizzle]

My point was not that they were selling trucks, but they are increasing production in a market that is slimming.

[Red Arrow]

quote:Originally posted by sgrizzle

My point was not that they were selling trucks, but they are increasing production in a market that is slimming.

It will be interesting to see if they sell the high-end decked out trucks or the work trucks that aren't so fancy. Not too many customers really NEED a big Caddy or Lincoln. Some customers do need a van for a large family (a seat belt for everyone) or a truck for work.

[John Redcorn]

I saw on another board a link to a dealer selling brand new silverado "work trucks" (presumably rubber floor, no headliner, manual windows, 2wd) for $8600 that's just amazing, less than an aveo.

I know the work truck package was probably lots cheaper than a "regular" silverado before but 8600, damn.

[midtownnewbie]

This increase in production might be due to the fact that they had a reduction in production in 2008 while they were trying to sell thru the leftover 2008's...