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 GM’s 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 GM’s North American operations, visited the Texas State Fair in September to bolster the company’s 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 sales—but the memory of the bailout could come back to hurt them.
“GM doesn’t want the Volt out there reminding traditional truck buyers that it’s 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 bailout—a 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 GM’s 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 you’re looking at GM, maybe their market-share isn’t increasing, but they’ve gotten smarter and engineered their products making them more profitable,” he said.
GM Canada President Kevin Williams said on Monday that GM’s 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 that’s not our intent because it [led to] a failed company,” Williams told the Globe and Mail editorial board on Monday.
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.
Ford.
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.
Thank you.
Ford. The F-150 Platinum is awesome with the ecoboost!
I would look at GM products if they got rid of the UAW.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.