Jump to content

Gorehamj

GM’s Increasing Profits Tied To Colorado ZR2

Recommended Posts

ZR2 special editions.jpg

John Goreham

Contributing Writer, GM-Trucks.com

2-5-2018

Tomorrow, GM will host its investors’ earnings conference call. The news will be good. These things are never left to chance, and GM has already issued "guidance" memos saying what will be disclosed. We don’t pretend to be experts on the finance side of the automotive business, but we can read over a facts sheet as well as the next guy. Here are a few things to consider and then we will get to the ZR2.

-          GM’s sales are flat, not really up or down over the past 18 months or so.

-          GM’s (U.S.) Profits are not flat. They are up.

-          GM’s profits have been increasing since about 2015

-          GM’s Colorado ZR2 is a pricey truck for the size.

A gent named Anton Wahlman, who is an expert on the finance side of the auto business, says that the ZR2’s percentage of Colorado sales has hit 12% in 2018. That is a pretty remarkable slice of the Colorado pickup pie. His point is that pricey specialty trucks, and to a lesser degree crossovers, is having a big impact on GM’s ability to wring out more profits from the same unit volume of vehicles. We went looking for evidence that he may be right and found it in GM’s latest sales report. It was actually the very last item on the report. It said, “Average transaction prices were up $1,270 year-over-year, according to J.D. Power PIN estimates.”

 

So there you have it. Two data items that both point to the same conclusion. Trucks like the ZR2 are working well for GM and the added profits they bring are helping GM to make more money, while not selling more vehicles. Ditching unprofitable markets like Europe, India and South Africa didn’t hurt, but making more money on the things you sell is always a good strategy. Here's GM's future strategy:  “Reshaping the company over the last few years has allowed us to deploy resources and capital to higher-return opportunities including our next-generation trucks and establishing leadership in the future of mobility,” GM President Dan Ammann said. “The all-new full-size truck family that launches this year will generate very strong returns for years to come.”

Share this post


Link to post
Share on other sites

GMC dealers must be pissed! No ZR2 in Canyon flavor. You would think GM would offer an off-road canyon...

Share this post


Link to post
Share on other sites
6 hours ago, 2009GMC said:

GMC dealers must be pissed! No ZR2 in Canyon flavor. You would think GM would offer an off-road canyon...

Yeah and GM would of probably sold more vehicles too 

Share this post


Link to post
Share on other sites

Colorado is still new.  The incentives will come and eat into that profit soon enough.

Share this post


Link to post
Share on other sites
On 2/5/2018 at 6:35 PM, 2009GMC said:

GMC dealers must be pissed! No ZR2 in Canyon flavor. You would think GM would offer an off-road canyon...

 

How many standalone GMC dealers still exist? The economy tanking and GM dropping franchises made most of the dealers become all GM brands around here it seems like. 

Share this post


Link to post
Share on other sites
On 2/5/2018 at 11:42 AM, Gorehamj said:

-          GM’s profits have been increasing since about 2015

That's one of the reasons why I still drive my "old" truck.
I do not need a study or fact sheet to see that the price of the new trucks is not justified on what you get for it.
People are being lured into a new vehicle with new I-Phone apps and lane departure warnings and rear vents.
The best example is the new RAM with the 12" touch screen. That alone will attract buyers, willing to pay thousands of dollars more.

 

so long

j-ten-ner

Share this post


Link to post
Share on other sites

That's why I buy used, I could never afford a new truck at todays (or last years) prices, but I got a decent price on a loaded 2015 with more stuff than I know what to do with. Plus, got rid of my 07 classic that was eating parts for a good price.

 

Edited by Rob Okray

Share this post


Link to post
Share on other sites

I do like the Colorado/Canyon, but the price point is just close enough to full size to make it not worth it to me.

Share this post


Link to post
Share on other sites

2 different markets, full size and mid sized. I sort of laugh when I hear people say that the ZR2 is just as expensive as a full sized truck, then you are not in the market for a smaller truck. Period.

Share this post


Link to post
Share on other sites

Nice truck but very expensive for practical use.


Sent from my iPhone using Tapatalk

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now


  • Similar Content

    • By Gorehamj

      John Goreham
      Contributing Writer, GM-Trucks.com
      5-10-2018

      A Colorado ZR2 owner, Joe F., at the Facebook Colorado ZR2 Club has reported a disturbing airbag deployment that occurred during some relatively benign soft-roading. If you’d like to jump directly to the club’s page you can do so here. Joe’s truck was just under a month old when this occurred. He had not modified the truck in any unusual way. He had added a winch and LED lights. Other than that his truck was bone stock. 

      Joe says that just prior to the side curtain airbag deployment, “I was moving up a hill slowly in 4WD LOW with OFFROAD MODE on, passenger side wheel in a rut which had me leaning to the right. It certainly wasn’t leaned over too much. Going maybe 3 mph.” Joe’s image above shows the road that he was on. Joe says the event  “…was quite a violent deployment (explosion).” He was not injured, and the truck was able to run after the event. 

      Joe has provided a long version of the events that took place after the improper deployment. He has had difficulties with GM. Neither the dealer nor GM wants to handle fixing the truck, which has an estimated repair cost of $6,500. Since the circular firing squad is only just now being put together, we will hold off on saying GM won’t take responsibility at the end of the debacle. You can read Joe’s full overview of the situation to date at the link above for all the gory details on his struggles to get help. If Joe posts a final outcome story we will update this post, or add another. 

      This sad story leaves us wondering if any other GM-Trucks.com members have ever had an airbag deploy during off-roading. YouTube does have some videos of airbags deploying when they should not, but there are surprisingly few. If something similar has happened to you, or you witnessed it happening, please give us the story. 

    • By Zane

      Zane Merva
      Executive Editor, GM-Trucks.com
      5/7/18
       
      Our trusty Spy Photographer has just caught the all new ZR2 Bison undergoing testing. We first talked about the Bison in early April when GM first registered a trademark. 
       
      Here's what our photographer has to say followed up by the photos they captured. 
       





       


       
       

    • By 10SierraA.T.
      Turns out the Rebel TRX concept is heading to production very soon. Has anyone seen this new unveil from Ram? Been waiting for a performance truck from GM for almost 2 decades now. Not a street unit, but apparently this beast will have options for a 575hp 7.0L NA Hemi, or the supercharged 6.1L Hemi making 707hp as found in the Hellcat and Trackhawk. I never thought I would consider a Dodge, but this thing puts the Raptor and anything GM makes to shame in the truck department. https://www.ramtrucks.com/en/limited-editions/ram-1500/rebel-trx/
       
      https://www.caranddriver.com/features/the-2018-ram-rebel-is-a-car-worth-waiting-for-feature
       
      What do you guys think? 
    • By Zane

      Zane Merva
      Executive Editor, GM-Trucks.com
      4/6/2018
       
      On April 2nd, just a few days ago, Chevrolet applied for a new trademark. "ZR2 BISON"
       
      What does it mean? Is there a "BISON" edition ZR2 in the works? Does someone at Chevy just really like the name? Does it mean something entirely else? We don't know. Most of the time Corporations use trademarks that they register but sometimes they don't. Just because GM registered this logo doesn't mean a BISON Edition ZR2 is a sure bet. 
       
      Then again, maybe it does?
       
      Read the Trademark Application Here at USPTO.gov
       
      SHOUT OUT to "Todd Wilson" on our Chevrolet Colorado ZR2 Facebook page for bringing this to our attention. 
    • By Gorehamj

      John Goreham
      Contributing Writer, GM-Trucks.com
      4-5-2018
      Rocky Mountains States-based online publication, The Fast Lane Truck, has chosen the Chevrolet Colorado ZR2 as its top pick for two out of five of its Gold Hitch Awards.  In fact, the Colorado ZR2 won every category it could. The ZR2 earned the Gold Hitch Truck of the Year award as well as the Best Off-Road Truck award.
       
      Writing the summary for the awards, Andre Smirnov said, "Good ground clearance, approach angle, front and rear lockers, and the Goodyear Duratrac tires carried the Colorado ZR2 to the top of the mountain. The truck’s midsize dimensions allowed us to choose just the right line over the large rocks. When the dust settled, the ZR2 did not get stuck and navigated the trail with more ease than the other competitors." Smirnov also pointed to the ZR2's livability as a daily driver.
       
      TFLTruck prides itself on its difficult mountain course. The publication's Cliffhanger 2.0 course includes sections with cool names like Truth or Dare and Razor's Bend. These folks have a true passion for their truck testing and the makeup of their overall winners list shows they don't lean just one way when it comes to brands.
       
      TRFTrucks' 2018 GOLD HITCH AWARD WINNERS ARE:
      Best Towing SUV – 2018 Ford Expedition
      Best Towing Heavy-duty pickup truck – 2018 Ford F-250 Super Duty
      Best Off-Road truck – 2018 Chevrolet Colorado ZR2
      2018 Gold Hitch Truck of the Year – 2018 Chevrolet Colorado ZR2
      2018 Gold Hitch SUV of the Year – 2018 Ford Expedition
       
       
       
  • Recently Browsing   0 members

    No registered users viewing this page.

  • Forum Statistics

    195,980
    Total Topics
    2,071,943
    Total Posts
  • Member Statistics

    164,053
    Total Members
    8,960
    Most Online
    Laurence
    Newest Member
    Laurence
    Joined
  • Who's Online   92 Members, 4 Anonymous, 661 Guests (See full list)

×

Important Information

By using this site, you agree to our Terms of Use.