GM Eyes Increased Pickup Profits with New Silverado
Jan. 23, 2018—General Motors recently unveiled a new Chevrolet Silverado at the Detroit auto show, in an effort to produce increased profits in the lucrative pickup segment. The new Silverado is the successor to GM’s top-selling vehicle in North America; sales of the current model rose nearly 2 percent (to 585,000 vehicles) last year.
Analysts say the Silverado and the GMC Sierra generated a significant share of the company’s $9 billion in North American earnings for the first three quarters of 2017, a recent Reuters report noted.
By adding luxury elements to their pickups, OEMs have caused the average pickup price to increase to nearly $47,000, according to Cox Automotive. Competition in the North American large pickup market is expected to increase as GM and Fiat Chrysler Automobiles NV begin selling redesigned trucks later in 2018, and Ford invests in the best-selling F-series.
In December, GM said it plans to offer eight versions of the new Silverado and more transmission and engine combinations than in its current lineup.