From a confidential analyst report...
We surveyed over 30 Chevrolet dealers in 6 key U.S. states to gauge the customer response to the recently introduced MY07 Tahoe. The response we received was positive: (1) Customers strongly prefer the exterior and interior over the MY06 Tahoe; (2) We were surprised that dealers do not believe current gas price levels are a problem;
(3) So far most buyers have been older-model Tahoe owners, but many dealers are optimistic of conquest sales from Ford, and; (4) Although it's clearly too early to draw any conclusions (customers coming in now are early adopters, or customers who have delayed purchases until the new model arrives), dealers generally expect sales to be up "significantly" over the MY06 Tahoe for the year.
Inventory of the new Tahoe remains a problem for smaller dealerships.
Many of the bigger dealers we contacted had no inventory issues, while the smaller dealerships either had only 1 or 2 units, or were still waiting for delivery. This does not surprise us given that GM would want to supply to those dealerships they think could move the vehicle the fastest during initial ramp-up of production.
Several dealerships cited positive customer reaction to the redesigned dash board and a more visible and user-friendly center console. In their sales pitch dealers are highlighting the vehicle's lower 'coefficient of drag', which increases fuel efficiency.
While our initial read on the new MY07 Tahoe is encouraging, we believe it is still too early to draw a firm conclusion on sales of the new vehicle for the year. Production volumes are not yet high enough for the car to be available at all dealerships. And until this happens (we expect in March or April), overall sales results won't look that strong.
AUTO SPIES PERSPECTIVE: We took our first test drive in the 2007 Tahoe on Saturday. Although we only had it for about 20 minutes,we were VERY impressed.
As an owner of the current Tahoe, I can tell you it is night and day better than the last generation vehicle.
You won't believe the difference and improvement if you test drive one.
In fact, the exterior and interior design, performance and ride is so much better, we predict the new vehicle will not only sell well against it's main competitor (Ford Expedition)but it may actually start conquesting sales from the Ford Explorer, Jeep Cherokee and others.
It drives WAY better than the competition, almost Range Rover like.
Why?
Because with its multi-displacement fuel system, a buyer can now have a full size SUV and get the same crappy fuel economy as a V6 Ford Explorer or a V6 Jeep Cherokee.
In that scenario why get the smaller, less powerful vehicle?
The other thing people never mention when they brag to you about their Acura MDX or the like is that their SUV's REQUIRE you to use premium fuel, vs. regular on the Tahoe.
So if you do the math, the exta mileage you get on an MDX (about 17-18 in town in our tests) pretty much cancels itself out when you factor in the extra cost for premium gas.
The new Tahoe is bar far the best looking, most functional for families, best driver of the group (BY FAR) tows better, and just looks cooler than the competition.
We like our first look that the new rock.
Note to GM: Get the six-speed tranny from the new Escalade in there ASAP and get even BETTER mileage!