General Motors Co. is quietly raising sticker prices of its all-new 2014 Chevrolet Silverado and GMC Sierra pickups. Since their launch this summer, prices are up nearly $2,100.
The latest increase of $1,500 on all trim models, which was effective last week, was part of a routine and planned pricing adjustment, GM spokesman Jim Cain said.
“We’re executing the next phase of our launch strategy now that we have all three body styles and the V-6 and V-8 powertrains in the market,” Cain said.
Cain said GM at the end of September had only about 20,000 2013 pickups in inventory and that with more availability of double cabs, regular cabs and V-6 models, “now it’s time to go into the market with a new strategy, with still a great value.”
GM in April boasted that the base price of the Silverado 1500 regular cab would remain the same as the 2013 model at $24,585, including destination charges, though the new truck was improved with better horsepower, torque and fuel economy. It also said the base prices on Silverado crew cabs and extended cabs (now called double cabs) would have carryover pricing from 2013. The GMC Sierra base price rose by $500 over the 2013 model to $25,085, including destination.
The prices of the base trucks now start at $26,670 for the Silverado and $27,170 for the Sierra, including destination charges of $1,095 each.
Cain said the new truck prices would be effective for pickups produced on or after Oct. 7. Trucks on dealer lots today will still have cheaper sticker prices.
Most of the cost of the latest price hike can be covered through incentives the automaker is offering: up to $1,000 cash back on the 2014 Silverado and Sierra. Another $500 back is available on several high-volume trim lines. The incentives expire Oct. 31.
Edmunds.com senior analyst Michelle Krebs said GM is raising the prices on the trucks because it can: The trucks are in demand and supply is not up to full levels.
“They can raise the price, but by having an incentive, it looks like they’re still offering a deal against the competitors,” she said.
GM’s price hike comes following a drop in pickup sales in September, even though rivals increased their sales. GM’s Sierra and Silverado sales totaled 45,944 last month, down 8.2 percent and below Ford’s F-Series September sales of 60,456.
GM blamed its drop in sales on high incentives from competitors, a lack of 2013 trucks and supply limits.
“I think they need to have something to tout in marketing messages, and they realized that cost them some sales,” said Karl Brauer, senior director of insights with Kelley Blue Book. “They are increasing the price knowing they’re immediately going to offer an incentive that will offset the increase in price, but give them a marketing message.”
Ford has up to $9,000 in incentives on its 2013 F-Series trucks. Its 2014 trucks will be available in November.
GM North America President Mark Reuss told The Detroit News earlier this month that the company won’t chase high incentives from rivals with its 2014 pickups. He said the competition mainly is selling 2013 trucks.
“When they stack incentives up to $10,000, … we’re not going to do that with our new truck,” Reuss said. “I’ll take my lumps for a month, but those high inventories and big-stacked incentives, we’re just not going to do that. We’ve got a great truck”.