Skip to comments.Poll: Texans Reluctant to Buy GM Trucks Because of Bailout
Posted on 10/09/2013 4:07:47 PM PDT by 2ndDivisionVet
More than half of Texans said that the nearly $50 billion taxpayer bailout of General Motors may deter them from buying from the company, according to a survey released Tuesday.
The National Legal and Policy Center (NLPC), a nonprofit ethics watchdog, surveyed more than 500 Texas residents and found that 40 percent said the bailout would absolutely affect their decision about buying one of GMs new pick-up trucks. More than 22 percent said it would likely or very likely affect their decision, while just 24 percent answered not too likely.
About 150 of those surveyed said that they were in the market for a new truck.
Truck buyers are older, less urban and more politically conservative than other consumers, according to the NLPC. Ominously for GM, the percentages of those who said their buying decision would be influenced by whether the company received financial assistance from the government were higher than those not in the market.
Texas is the largest truck market in the United States: pickups represent 20 percent of all new vehicles sold in the state, according to Bloomberg Businessweek.
The state will serve as a bellwether for pick-up demand. The company plans on sending 40 percent of new Chevrolet Silverados to dealerships in Texas.
GM executives have been working hard to woo Texas residents. Mark Reuss, president of GMs North American operations, visited the Texas State Fair in September to bolster the companys image.
It also embarked on an ambitious marketing campaign, posting nearly 80 billboards across the state and scheduling more than 40 marketing events to promote the Silverado, according to Bloomberg Businessweek.
Despite its heavy push to increase its market share against the best-selling Ford F-Series, GM pick-up truck sales fell 8 percent in September from one year ago, according to the NLPC.
The company has pulled back its marketing push for the Chevy Volt and other vehicles to focus on pick-up salesbut the memory of the bailout could come back to hurt them.
GM doesnt want the Volt out there reminding traditional truck buyers that its a bailed-out company, as that message clashes with the values of patriotism and self-reliance that truck marketing depends on, auto expert Ed Niedermeyer told the Washington Free Beacon on Tuesday.
The Treasury Department is in the process of selling off more than 100 million shares of GM stock owned by the federal government. Taxpayers are expected to lose $10 billion on the bailouta 20 percent loss.
GM President Mark Reuss acknowledged that the bailout could come back to haunt the company.
We know that the government ownership influence is highest among truck buyers. Being owned by the government is problematic for now, he said in October.
However, some say GMs falling market share may not be that problematic. The company has streamlined its operations and created more common components, such as universal radio systems, to cut down on costs, according to Autopacific analyst Dave Sullivan.
Long-term if youre looking at GM, maybe their market-share isnt increasing, but theyve gotten smarter and engineered their products making them more profitable, he said.
GM Canada President Kevin Williams said on Monday that GMs past focus on market share has led to risky business practices that plunged the company into bankruptcy in 2009. GM leads the industry in subprime auto-lending to move vehicles off the lot, which Williams said could have catastrophic results for the automaker.
The real question is, are you going to run the business the way you ran it in the past in order to drive market share exclusively. The answer is thats not our intent because it [led to] a failed company, Williams told the Globe and Mail editorial board on Monday.
Totally agreed. I know I will not buy any care from any company that raped the American people.
Meh, no big loss. They lost my business when they scrapped the only two brands I used to buy: Oldsmobile and Pontiac.
An inferior product does not hurt in the decision either.
Reluctant? No. I absolutely refuse.
I drive a Toyota Tundra CrewMax 4x4 Limited 5.7..... and mine was made in Texas. I’d never buy an Obama car.
I’m with them. Dodge neither.
A year and a half ago, when I was in the market for a new car, I didn’t even look at what GM had to offer. Buying anything from GM is simply out of the question.
We will never buy any vehicle from Government Motors. EVER. Never before have bond holders been screwed like this deal which gave the company to the labor unions.
I knew I should have been a Texan. I’m stuck in a state second only to Massachusetts when it comes to anti-American values (Maryland), and I will never under any circumstances buy or rent another GM product. I don’t deal with crooks, and GM is an inherently corrupt organization.
Ford sales up and all others down.I always tee off on someone who drives an obamamotors car.There lame ass reply is that it was before the bailout and I just laugh at them.
I’m reluctant to buy GM and I’m from Jersey.
I believe Chevy’s reputation regarding trucks is that they are more expensive than Ford or Dodge but higher quality. With the other truck makers seeing sales increases and quaility not an issue, all that is left is that truck buyers don’t want government motors.
So am I and I need a new truck!
Not surprising - Government Motors is pretty much “scorched earth”, so far as consumers are concerned. Once, the General Motors brand was unassailable, putting solid products out in the market place and giving fair measure for goods purchased. You knew a GMC or Chevrolet pickup truck had the lifetime of a horse and could be maintained with a minimum of attention to the basics. Not a fussy or temperamental vehicle at all.
But GM became a massive retirement and health care plan, and only incidentally manufactured motor vehicles and related products. When some 30% of the price of that vehicle is going for coverage of workers who may be long retired, and is not available for technological upgrading or engineering excellence, something had to suffer. Toyota, Nissan and Ford all kicked the butts of the “post-bailout” products from Government Motors, or at least, that is the perception.
Studebaker and International were once producers of light and medium duty trucks, too. And what remains of either of them today? An occasional one will show up at a “veteran” or “antique” automobile show.
I have an 03 Avalanche that I like a lot. I would consider buying a newer one ‘08 or earlier. But never any GM product after that date.
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I hear ya. Nissan's upcoming 5.0 Cummins turbodiesel Titan is the one I'm waiting to see. It should a game-changer in the pickup market.
Chevy trucks are not higher quality than Ford. Ford has outsold GM in the truck department for years now. The Chevy is a good looking truck and if it weren’t a GM, I’d look at them. It’s Ford for us, we have two. A Flex and a Superduty.
I’m considering leasing a Chevy Silverado, extended cab, with the 6.0 engine. But I am open to suggestions of a Japanese P/U that is comparable. Do you have a suggestion?
Since Nissan is selling as many Titans in a month as Ford does in half a day, there’s a lot of “game changing” needed.
Oh, first I’ve heard of the Cummins powered Nissan! Thanks!
What should I buy then for a one diesel for my work in the patch?
Just finished watching a segment on Wilcow about this! He had Ed Butowsky (?)...some financial expert...on who said the exact same thing. He asked "why is Chevy having to sell their inferior product at a higher price (than Ford)? Especially when they're made in Mexico and Canada! He said that he's in Texas and he sees Ford trucks far outnumbering Chevy trucks, on the road.
I suspect you post is bait for a pissing match.
Texan, I drive Ford, I will not buy GM nor Dodge again... EVER.
LOL - I promise with all my heart - it’s not. I don’t have much experience with Japanese model P/Us, and I honestly look to Freepers for guidance here.
“I hear ya. Nissan’s upcoming 5.0 Cummins turbodiesel Titan is the one I’m waiting to see. It should a game-changer in the pickup market.”
I have a 2003 Nissan Frontier Pickup truck and after all of the issues I have had with this truck I refuse to ever buy a Nissan vehicle again.A lot of the problems were not routine maintainance issues like breaks and such.These Problems were caused by Poor engineering Practices.Putting in crappy fuel sensors that fail every three years and require that you replace the entire gas tank to repair that problem.
A power steering system that would bleed fluid through its plumbing system,another one of their defects.
Then An A/C problem which just suddenly showed up following a routine oil change.
I will never buy Nissan or GM again.I’m looking for quality and its either Ford or Toyota.
I’m one of them!!! Bought Ford....wouldn’t even think of GM because of bailout.
Not to forget the Cash-4-Clunkers BS.
Dodge has a V6 turbo-diesel (Italian-made, via a Fiat subcontractor... should be interesting) getting ready to debut in the 1500.
Ford shelved its plans for a light diesel in 2009 or so and has dug in its heels to keep it shelved. Just trying to get its EcoBoost gasoline engines off to a good start, I suppose. I hope they don't regret that decision. The good news is that Cummins wouldn't give Nissan exclusive rights to this new engine. We could see it under other brands' hoods in a few years.
Warranties were also voided, screwing the owners of GM vehicles.
....in 43+ years of business, I have bought approximately 200 pickups for my various business. All but about 4 were Chevy’s. The remaining 4 were Tundras.
After 2009, I will barely ride in my friends Chevy’s much less buy one of them! What did it for me was when they took care of the unions but raped the stockholders.
Pay back the American Taxpayer ten billion plus about 20% interest and I will go buy one!
Traded in a 2003 Durango for a Honda Pilot earlier this year and love the Pilot. American car companies and shove them where the sun doesn’t shine.
Both Toyota and Nissan have "full-sized" pickups (Tundra and Titan, respectively) that approximate the Silverado, with V8 engines in the 5.4 to 5.6 liter size range. I think a redesigned Titan is due out from Nissan, along with the diesel power option. Don't know about the Toyota, but neither company makes drastic or frequent changes to either pickup.
All I can tell you is to go test drive them and do your homework on Edmunds and similar websites. As for lease deals, I really don't know what is available on pickups.
Ford. The F-150 Platinum is awesome with the ecoboost!
I would look at GM products if they got rid of the UAW.
You should buy whatever you think you look good in.
My American made Tundra, made by nonunion American hands, came with 386HP and it now has nearly 400HP. I like my truck to have guts when I hit the throttle. I needed it to tow a 6,800 pound Airstream trailer and occasionally an 8,000 pound boat. My truck is rated for 10,500. I can feel the boat a wee bit, but the truck doesn’t even know the Airstream is back there when towing.
Go drive one.
I bought this truck new in 2010 and I have not had ANY troubles with it. The dealership treats me like a king.... and for what I paid for it, they should.
Bottom-line, I think it all depends on what you like, what you need it to do and how much you’re willing to pay to get what you want. I am living my dreams, I would hope you will be able to live yours.
i won’t. no gm or chrysler. they basically suck anyway. especially the chryslers, they look like cheap frickin toys.
Thank you. I will definitely test drive a Tundra before making a decision.
Thank you. I will also consider your suggestion when I am ready to lease or purchase.
They better put a decent rear axle under that thing with the diesel. The Dana 44 is ok for Jeeps but pretty undersized for a half ton pickup. I’m sure all the rear end failures have affected sales.
Won’t buy a truck assembled by the UAW....that means GM, FORD, or Fiat.
Buy the pickup that’s made in Texas - Toyota.
I am in the market for a pickup, probably used, and refuse to look at any GM product manufactured after 2008. I have purchased only GM products since 1976 including Vans (custom), SUV’s, and pickups. I currently own five GM products.
I will not buy another post-obama GM product.
Our local GM dealer was closed by obama’s GM...
BTW, I would be considered a rancher by a lot of folks but due to high speed roads,droughts,and land hungry lawyers, I am in wildlife management (not for profit).
In reference to lawyers, a cow gets out and jumps in front of a car, my fault; if a deer jumps the fence and then wreaks a car, not my fault....
For 50 years I owned nothing but GM.
I have bought my last one.
When my 95 Chevy pick up gives up , I will be buying a Ford or Toyota.