GM, Chrysler Likely To Rain on Ford F-150 Launch
|   Sunday, October 26, 2014
If the world of automobile marketing were politically correct, General Motors and Chrysler would step aside and let Ford have the pickup truck spotlight as the number two automaker stages its awaited launch of the all-new F-series lineup this month.

Don't bet on it, says Adam Jonas, an analyst with Morgan Stanley quoted in Barrons. Rather than just stepping out away, letting Ford have center stage, GM and Chrysler will be counter-marketing as they up incentives on their Silverado, GMC and RAM lines, respectively.


It's really just business-as-usual for the auto industry. Last year, for example, when GM launched its all-new Silverado/GMC lines, Ford stepped up discounts and incentives on their 2013 leftover and 2014 models. Ford also made sure that its dealers had more than enough pickups to meet the demand.

The result was, the Morgan Stanley analyst noted, that GM's product launch definitely felt the impact of Ford's actions.

So, why would GM and Chrysler stand aside so that Ford could have the limelight? The answer is they would not. Indeed, some speculate, the it is payback time and Ford is the target.


Already, GM has begun its counter-marketing plan. For example, last month was "Truck Month" at GM dealers. And, the automaker has already dramatically increased loyalty and other incentives. It is likely that dealers will take a page from the factory guidelines and will increase local discounting by using whatever hold-back and incentive funding they have available. Going forward, it is likely that conquest incentives will also be increasing so dealers will become even more aggressive with the pickup sales.

Ford, Morgan Stanley notes, is pinning a great deal on the new F-150. The automaker hopes that the all-new aluminum-bodied truck line will turn around its flagging sales fortunes at a time when investors are continuing to clobber its stock. Some are wondering why the automaker would pin all its hopes on this type of launch now.
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