General Motors Company (GM), Ford Motor Company (F): The Company’s Silverado Looks to Disappoint

Price change
Another of GM’s strategies is to keep the 2014 base price identical to the 2013 model. That’s an aggressive pricing decision and shows GM is going to try and take market share back as quickly as possible. That also means GM needs to have a smooth transition selling down the 2013 models. Investors need to keep an eye on the inventory levels because it would require large incentives and hurt margins to push the older models off the lot.

Bottom line
If consumers are looking for a fresh look from GM, the new Silverado will disappoint. If consumers are looking for functionality, innovation, and improved fuel efficiency, then GM might have done just enough. I expect Silverado sales to increase but not to the extent GM wants to see. I think the Atlas concept has generated enough buzz for some consumers to wait and see the next-generation F-150 before making a decision. What do you think: Which will dominate sales over the next few years — Silverado or F-150? I want to hear some consumer opinions, so let me know what you think in the comments below. One thing is for sure, the most profitable vehicle segment is up for grabs, and it will have a direct impact on Ford and GM’s profits over the next few years.

The article GM’s Silverado Looks to Disappoint originally appeared on Fool.com and is written by Daniel Miller.

Fool contributor Daniel Miller owns shares of Ford. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford.

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