It will be a solemn month of trucks at Chevy and GMC dealers of this TruckTober, as the shortage of spare parts from the prolonged strike of united auto workers its last North American pickup truck closed last week.
Whilst GM Flint and Fort Wayne trucks are being manufactured by UAW employees who stopped working on the day of the first strike, the plant in Silaao, Mexico, was still operating 1300 pickups per day. Although the company's employees in Mexico are not on strike, the Silao plant needs parts from UAW tools to continue operating. On October 1, after exhausting its spare parts, GM shut down the plant.
As Automotive News indicates, this means that GM is launching Truck Month without the ability to produce new trucks. Even now, Chevy is aggressively driving the Silverado for truck month, offering up to $ 9,510 from the Silverado 1500.
Obviously, the delivery of a company truck is still strong enough to support high dollar incentives. But as more plants outside the United States cease and suppliers are forced to handle production, GM is on strike every day. If it causes a serious problem with the delivery of trucks, it will cost GM large sizes. Per Automotive News :
GM "did not get into a good position to hit trucks," said Tyson Gomini, vice president of data consulting and analytics for J.D. Power. "Delivery of trucks may start to decline a little earlier if it does not reach this point."
GM's lost profits accrue after UAW members leave their plants. September 16. On Sunday, October 6th. The company said GM lost $ 660 million in revenue, according to Anderson Economic Group in East Lansing, Michigan. Daily losses start at less than $ 10 million a day, but they will catapult up to $ 90 million a day if the strike extends to
And if GM hoped to take second place from Ram in the full-size truck segment, this is highly unlikely at this point . Ram has already beaten Silverado over 52,000 units a year. It would be the first full calendar year when Silverado lost to Baran.
But while it sounds bad, the news is much better if you include the GMC Sierra. In the third quarter, combined sales of Sierra and Silverado actually won the Ford F-Series. Overall, GMs are moving fuller trucks than anyone in the last quarter. This strike, however, threatens to change this
And this is important because it does not appear that GM will retain its leadership position for long. The Silverado and Sierra lines have been completely redesigned in the last two years, with brand new versions of the 1500 and HD models. Ford, on the other hand, has not completely redesigned the F Series in five years.
As Ford prepares to release the next-generation F-150 and Super Duty, GM's window of excitement and sales opportunities may be short.