Analysts, dealers and others react to GM's 2014 big pickups
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Chevy's 2014 Silverado pickup |
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- 2012 European Automakers: Audi, Bentley, Bugatti, Lamborghini, Porsche, Volkswagen
- 2012 Chrysler-Fiat Future Product
- 2012 Japanese Automakers: Infiniti, Mazda, Mitsubishi, Nissan, Subaru and Suzuki
- 2012 Ford Product Plans
- 2012 Korean and Chinese Automakers Future Product
- 2012 European Automakers: Aston Martin, BMW, Jaguar, Land Rover, Mercedes-Benz, Mini, Rolls-Royce, Smart, Volvo
- 2012 Japanese Automakers Product Plans: Acura, Honda, Lexus, Scion, Toyota
- 2012 GM Product Plans
"While the new models are well needed, and replace a highly aged product offering, we believe they will not displace Ford as leader in the highly profitable U.S. full-size pickup segment, unless Ford misfires on quality in its 2014 F-150 relaunch. The new models keep GM more competitive in the highly crucial North American full-size pickup segment, particularly with regard to powertrain options. The new pickups will also likely allow GM to narrow the gap with Ford on average transaction price per unit, boosting profit per pickup by $1,200. In the new engines, GM took some steps toward boosting its powertrain, and thus mostly catching up to Ford on fuel economy, by including key technologies, such as gasoline direct injection, cylinder deactivation, and continuously variable timing. Nevertheless, we expect the new truck to still lag Ford in torque curve so long as it lacks a turbocharged option."
-- Barclays analyst Brian A. Johnson
"We see incremental design changes on what is one of the most popular trucks in the market with annual sales in excess of 500,000 units. Most design efforts appear to be focused on improving aerodynamics and refining what essentially is a work truck. The interior upgrades look good but some of the design elements appear a bit bulky."
-- Analyst David Leiker of Baird Equity Research
"They have created a much more competitive truck."
-- LMC Automotive analyst Jeff Schuster, adding GM's big challenge now is pulling off the transition from the current model and properly launching the new pickups and SUVs.
"The pickups look updated, but not in a striking way. These are workhorses, after all, and truck owners want performance, rather than a sexy appearance. And, while truck owners tend to pick a company and stick with it, there are still three crucial things that GM has to prove when these trucks go on sale next spring: Are they a clear improvement? ... Are the new pickups priced right? ... Is the technology bullet proof? .... "
-- Forbes contributor Michelin Maynard
"Truck buyers won't say, 'I'm not going to buy that truck because it doesn't have an eight-speed automatic'," or some other specific feature -- as long as it performs well overall.
-- Industry analyst Jesse Toprak of TrueCar.com, in USA Today
"The styling is certainly 'evolutionary' while the interior is improved. Three new gas powered engines were revealed -- 2 V-8s, 1 V-6 -- and while official specs haven't been revealed yet, GM does claim improved horsepower, torque, and mpg. GM's strategy does seem to differ from Ford and Ram who seemed to place a greater emphasis on mpg. We suspect that GM could be saving additional powerplant options -- V-6 turbo, diesel -- for year 2 to balance Ford's scheduled 2014 F-150 launch."
-- RBC Capital Markets analyst Joseph Spak
"A lot of people have been waiting for it. A lot of Chevy and GMC truck buyers who have had two or three of the current version are excited to maybe move into the new one. They did a great job with the interior. The outside appearance is strong, but the interior is probably the biggest change, which I'm very encouraged about."
-- John McEleney, a Chevrolet dealer in Clinton, Iowa
"They had a really good riding truck, good fuel economy. They've got to take that leap again. They've got to leapfrog Dodge and Ford."
-- Larry Dominique, executive vice president of researcher TrueCar.com
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The interior of the 2014 GMC Sierra |
"The Chevrolet Silverado and GMC Sierra mark an evolutionary step forward, with revised styling, powertrains, and safety features more commonly associated with upscale cars. The light-duty 1500 series trucks wear squared-off styling that gives them a sturdy, heavy-duty appearance. Numerous design details, such as a more angled windshield and tighter panel gaps, has enabled a five-percent improvement in aerodynamics ... The trucks were engineered to meet the latest crash test standards ... Interiors look distinctly GM, though a bit less toy like."
-- Jeff Bartlett of Consumer Reports magazine, in a blog
"It's really hard to find a product for GM that's more important. From a volume and financial standpoint, this is GM's Super Bowl."
-- Rebecca Lindland, an industry analyst with IHS Automotive
"GM appears to have taken a relatively low-risk approach (as opposed to a giant leap) with its new generation pickup truck in terms of styling and engine technology. Assuming the product can deliver significantly improved fuel economy with upgraded power vs. competitors, the new Silverado and Sierra should drive segment share gains from 2014."
-- Morgan Stanley analyst Adam Jonas
"If you're expecting GM to write the recipe for the perfect pickup truck, or turn the market upside down, it's not going to happen with this model. This is simply an evolutionary change, which takes what was wrong with the last pickup truck and addresses those concerns. You end up with a quieter, more modern and more inviting vehicle."
David Phillips, Reuters and Bloomberg contributed to this report
