Chevrolet rolls out big incentives on Silverado – USA TODAY
Chevrolet customers will find new incentives, especially on the Silverado pickup, in the next few weeks as General Motors’ best-selling U.S. brand tries to reverse sales after a nearly 19% decline in May.
The sweetened deals, reported first Thursday by Automotive News, include 0% financing for 60 months and up to $8,250 cash rebates on some crew cab versions of the Silverado, according to Patrick Min, an analyst with TrueCar.com, the car-shopping web site.
There is also a loyalty program for people approaching the end of their leases on the Equinox SUV, said Matt Serra, general manager of the Serra Auto Plaza in Grand Blanc, which includes a Chevrolet dealership among its 12 showrooms. They can apply the incentive on the lease of any new Chevrolet model.
General Motors has seen its market share drop to 16.6% for the first five months of 2016 from 17.7% a year earlier. In March its share fell to 15.7%, just 0.4 percentage points above Ford.
That has reflected GM’s intentional strategy to de-emphasize sales to daily rental companies which usually generate smaller profits than sales to individual consumers.
To be fair, the May decline also reflected that dealers were open fewer days than in May 2015.
TrueCar’s Min said Chevrolet’s incentives have averaged about 10% of the transaction prices so far this year, which is lower than Chrysler and Dodge.
But fullsize pickups are selling at an average of more than $40,000 each, which some fully-loaded crew cabs going for more than $50,000. Even with a robust rebate, the company earns a hefty profit.
“They definitely cranked up the incentive programs in June,” said Serra. “They (Chevrolet) don’t operate in isolation. You’ve got the other manufacturers who have aggressive programs on most of their lineup and you’ve got to respond.”
On the passenger car side, which has been tough throughout the industry, Chevy has the advantage of several fresh products, including the Malibu, Cruze and Camaro. While crossover utilities remain hot, Chevrolet will launch an updated design of its 2017 Trax later this year.