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


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FORD MEDIUM DUTY TRUCKS – Image via www.penskeusedtrucks.com

Ford Medium Duty Trucks – Chevrolet’s new medium-duty Silverado truck is an important part of General Motors’ plan to build sales of its commercial fleet and cut the dominance of its biggest rival, Ford. When retail demand for cars and trucks began to fall after several years of growth, fleet sales were an important way for car makers to keep their profits strong.

GM sees commercial vehicles with higher margins as the best way to increase fleet sales. Car rental fleet sales have dropped 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 with 7.8% in 2013.

Ford Medium Duty Trucks

Overall, the sale of the commercial fleet has contributed more than $ 1 billion to GM’s net profit over the past five years.

An important part of GM’s strategy is the new line of medium-duty commercial trucks produced in partnership with Navistar: the Chevrolet Silverado 4500HD, 5500HD and 6500HD. Production began on this model earlier this month. The company will buy it to turn into a delivery truck, tow truck and other work vehicles.

Many corporate customers are looking for package deals where they can buy several types of vehicles in one move. Car makers 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 truck becomes a hit, that success can provide a big boost for sales throughout its commercial range.

So far this year, GM’s commercial fleet sales rose 13.5%, compared with 5.1% for Ford. GM still has the job cut. Overall, Ford controls 40% of US commercial fleet sales, compared to 25% for GM.

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