GM will unveil its new full-size pickup trucks, while it is struggling to get rid of the current models by offering increased incentives.
The redesigned versions of the Chevrolet Silverado and GMC Sierra in Pontiac will be revealed on Thursday, December 13th, but customers will not be able to buy them until the beginning of the second quarter of 2014. Until then customers can only buy the current version.
“It’s a huge cash-flow machine and it’s the first introduction of this product post bankruptcy and that means something just for the psychology for General Motors,” said Guggenheim Securities analyst Matthew Stover, who has a “neutral” rating on GM shares.
Analysts expect GM’s new trucks and SUVs to bring the company a profit of more than $12,000 per unit, which is of utmost importance for the automaker which filed for bankruptcy in 2009 and was helped by the US government with a $50 billion bailout. Sales of GM’s Chevy Tahoe and Suburban pickups and GMC Yukon and Cadillac Escalade SUVs have increased 11% in 2011 to over 799,000 vehicles.
As truck and SUV sales account for almost 60% of GM’s North American profit, analysts expect the new model to bring the company more than $1 billion in additional operating earnings next year and in 2014.