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Medium-Duty Silverado Trucks Key to GM’s Commercial Fleet Push

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Chevrolet Silverado medium duty trucks for General Motors commercial fleet

The Chevrolet Silverado 4500HD

Chevrolet’s new medium-duty Silverado trucks are a crucial part of General Motors’ plan to build its commercial fleet sales and cut into the dominance of its biggest rival, Ford.

As retail demand for new cars and trucks begins to flag after several years of growth, fleet sales are a crucial way for automakers to keep their profits strong.

GM sees higher-margin commercial vehicles as the best way to build up its fleet sales. The automaker’s rental fleet sales have sunk to 10% of total sales this year, down from 15.8% in 2013. Meanwhile, commercial fleet sales have increased to 11% of total sales, compared to 7.8% in 2013.

Overall, those commercial fleet sales have contributed more than $1 billion to GM’s bottom line over the past five years.


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GM commercial fleet

A Chevy Low Cab Forward truck for GM’s commercial fleet

A key part of GM’s strategy is its new line of medium-duty commercial trucks produced in a partnership with Navistar: the Chevrolet Silverado 4500HD, 5500HD, and 6500HD. Production started on these models earlier this month. Companies will purchase them to turn into delivery trucks, tow trucks, and other work vehicles.

Many corporate customers are on the lookout for package deals where they can buy several types of vehicle in one swoop. Automakers have found that for every medium-duty truck sold, they can sell six more pickups, cars, or SUVs to the same customer. So if GM’s new trucks are a hit, that success could provide a major boost to sales across the rest of its commercial lineup.

So far this year, GM’s commercial fleet sales are up 13.5%, compared to 5.1% for Ford. GM still has its work cut out, though. Overall, Ford controls a 40% share of U.S. commercial fleet sales, compared with 25% for GM.


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News Source: Reuters