Demand for the Chevrolet Silverado is outstripping the automaker's ability to build them.
Trucks have been leading the record-setting sales run of the last 12 months and now one automaker is facing a pleasant problem: General Motors is running out of space to build trucks to meet consumer demand.
Sandor Piszar, director of truck marketing for GM’s Chevrolet Division, said during a briefing ahead of the Chicago Auto Show, that all of GM’s truck plants – Flint, Michigan; Fort Wayne, Indiana; Wentzville, Missouri; and Silao, Mexico – are currently running flat out to fill the demand for GM’s pickup trucks.
The demand covers everything the maker builds, ranging from the heavy-duty pickup in Flint to the full-size pickup trucks in Fort Wayne, and the new midsized pickup in Wentzville, which also builds full-size vans. All three plants are running on three shifts seven days per week, Piszar said, leaving GM little room to build more, he said.
Prior to and during its bankruptcy, GM closed down pickup truck plants in Pontiac, Michigan, and Shreveport. Louisiana. It closed another truck plant in Oshawa, Ontario, in 2008 because of rising gasoline prices.
With the prices of gasoline falling, the popularity of trucks has grown in the past couple of years and GM is seeing some new customers coming in looking for trucks, Piszar said. Not only are tradesmen buying trucks but also suburbanites looking for the ultimate “co-compromise” vehicle, he said.
GM's struggle to keep up with truck demaned isn't limited to its full-size offerings. It includes tthe maker's midsize offerings as well.
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The tight inventories on dealer lots have helped keep incentives relatively low despite some intense competition from Ford Motor Co. with its F-150 and Fiat Chrysler’s Ram 1500, which U.S. News & World Report tagged this week as the Best Full-size Truck for the Money.
“At Ram, we set out to create the best trucks in the market, and this award from U.S. News acknowledges the positive quality and value equation of our Ram 1500,” said Mike Manley, head of Ram Truck Brand, FCA Global. “In a highly competitive segment, Ram is committed to technology and innovation leadership. Proof of that commitment is a long list of best-in-class titles, including America’s most fuel-efficient full-size pickup at 29 mpg.”
Meanwhile, sales of the Ford F-150 totaled 51,540 units, down 5% when the company had backlog of demand for new all-aluminum truck it had just introduced. F-Series average transaction pricing grew $2,500 last month, while incentive spending was down $500 versus a year ago, according to Ford.
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“We continue seeing strong commercial fleet orders for F-150 and will be filling more orders this year,” LaNeve said. “As the largest seller of commercial vehicles, this represents good news for Ford trucks and the overall economy.”
Piszar said GM is looking for will increase output of its Chevrolet Colorado and GMC Canyon midsize trucks by adding tooling at the Wentzville plant.
“It’s incremental,” added Piszar. Last year, GM sold 114,507 mid-sized trucks and has increased capacity increases to the paint shop. The added tooling marks the second time is the second time that GM has boosted the production of the pickups since their launch in the autumn of 2014. GM’s inventories of unsold pickups have dropped to 58 days, which is significantly below the 70-day supply that is considered a well-balanced.
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“We will make as many as we can while maintaining quality levels,” Piszar said. The Wentzville plant also builds the full-size Chevy Express and GMC Savana vans. “Vans are hot, too,” Piszar said.