General Motors (NYSE:GM) made a tremendous effort to ensure that its launch of the all-new Chevy Silverado and GMC Sierra pickups — GM’s most important products — would go smoothly. All appeared to be going exactly as GM planned — but now, there are reports that the 5.3-liter V8 engines used in the new pickups may be in short supply.
Sales of GM’s pickups were down last month, and Ford (NYSE:F) was able to gain market-share ground. That’s a big problem for GM, but it may not be a GM problem: Bloomberg has reported that the problem lies with a supplier that hasn’t been able to keep up with demand.
But as Fool contributor John Rosevear points out, it doesn’t matter where the problem lies — in the face of stiff competition from Ford and Chrysler, GM needs to get it fixed before its new pickup’s strong sales momentum stalls.
Published at Wed, 30 May 2018 19:59:00 +0000