After the Q1 2023 full-size truck sales numbers were reported, we wanted to analyze the supply of General Motors, Ford and RAM full-size, light duty trucks across the country to learn more about how each brand is attacking the market.
General Motors had the most Q1 full-size truck sales, and we found that General Motors could be poised to repeat their full-size truck sales dominance in Q2, with a strategy that has them focused on managing the supply of their light-duty truck lineup.
We wanted to take a closer look at the inventory on the ground as well as the days supply of America’s three top domestic brand’s full-size, light-duty trucks.
We found three different approaches to managing days supply.
General Motors has the highest total number of full-size, light-duty pickup trucks on the ground at 113,737 units, with two different models available in the same category – the Chevy Silverado 1500 and the GMC Sierra 1500. However, we’re showing that General Motors has the lowest days supply of full-size light-duty trucks on the ground, with a 90 days supply.
Last month we analyzed how this is possible. General Motors is managing production through planned plant closures and we came to the conclusion that additional plant closures may be needed to get to the company’s stated goal of a 50-60 days supply.
There are more new Ford F-150s ‘s for sale in the United States than any other Make we’re comparing today. Ford’s production strategy appears to be “full steam ahead,” and this comes at the cost of also having America’s highest days supply of full-size, light-duty trucks.
Ford has 109,864 units on the ground and the highest days supply of their competitors at 120 days. Our sales team is finding that this oversupply is putting franchise dealers in a position, as they currently must give up holdback in order to offload aged units to other franchise dealerships.
RAM dealers have been receiving less than invoice on dealer trades with other RAM dealers since the beginning of the year – indicating an oversupply issue. The manufacturer currently has the second highest days supply of the three domestic full-size, light duty truck manufacturers at 105 days supply.
What’s interesting here though is that there are less than half as many RAM 1500s on the ground, at 51,332, than Ford F-150s and General Motors 1500 series trucks. This means that RAM is not dealing with an over production issue, but rather a demand issue that the manufacturer is now working to resolve with incentives.