Marchionne: Mid-Size Trucks A Non-Starter

by Derek Kreindler

Published: May 9th, 2014

marchionne mid size trucks a non starter

At this week’s FCA investors conference, the floor was opened up to a Q&A session for journalists and equity research analysts. One scribe asked FCA CEO Sergio Marchionne about the prospect of a mid-size pickup, and Marchionne’s answer confirmed what many of us already knew.

According to Automotive News, Marchionne stated that

“We’ve gone through this issue now for five years, and we can’t flip the frame right.”

Autoblog has Marchionne sounding a bit more optimistic

“I think there is room for a Ram 1000…We’ve tried this … we’ve actually taken it to clinics…response has been lukewarm.”

Not long ago, sources told TTAC that a small truck, based on a front-drive car architecture, was being considered. But those plans now appear to be off the table.

#Fca #FiatChryslerAutomobiles #Fiat.Chrysler #Ram #Truck

Derek Kreindler

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Jeff S on May 13, 2014

@DM--Yes they are still a reasonable value but I see a trend of more families migrating away from trucks and going to crossovers. I don't think trucks are in any danger of dying but I see sales of newer ones not being as high as they are now. There are always those who use a truck as a truck and those that just plain prefer them but crossovers of all sizes are the fastest growing segment of the market especially among women who are buying them. I see more crossovers where I live than crew cab full size trucks and midsize sedans which both are still numerous but the larger number of crossovers is definitely noticeable. All the manufacturers want a piece of the crossover market, which eventually it too will no longer be as hot of an item except for most families it has more utility than most other types of vehicles. The crossover is like the Swiss Army knife of vehicles.

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- Danio3834 on May 13, 2014
  
  For the bulk of our daily driving, we've gone from large SUVs and a crew cab 1/2 ton back to sedans and small crossovers. I save about $2500 a year in fuel by driving something that averages 25 mpg rather than 15. I still have a crew cab truck for truck stuff, but it only gets driven with a trailer attached or the bed full anymore. In addition to saving on fuel costs, driving a sporty-ish sedan makes the commute less of a bore.
  
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- Big Al from Oz on May 13, 2014
  
  @Jeff S I concur with your comment. But, I might see it a little different on how these changes will occur. As I've pointed out the new aluminium pickups will cost more. This will put a dent in sales. It has to. How many I don't know, but it will be significant enough. Commercial users will gradually move away from these new expensive SUVs with a balcony (thanks DiM) and buy more commercial style vehicles. Sort of like how the pickup started. The US pickup has lost it's way in that respect. It's moving further and further away as a cheap and cheerful work truck. The very rules that started out to defend the local pickup manufacturers in the US are coming home to roost now. As I've stated in the past I believe that assistance to any industry should be short term as the longer the barriers and protection is available to an industry the more reliant they become with it. Sort of a symbiotic relationship forms. One could assume that 50 years of protection on a product will have some influence at distorting it's real position in the market. This is where full size 1/2 ton pickups are now. CAFE will make them into as DiM has stated on previous occasions 'SUVs with a balcony'. The vehicle will have to move 'upmarket', this will reduce sales due to lack of customers. It will become a prestige vehicle, a rustic one at that.
  
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- DenverMike on May 13, 2014
  
  @Jeff S - OK, the crossover will steal sales from a lot of segments, including full-size trucks, but I can't really see them as a replacement for full-size trucks. Dually crew cab 4X4s? Maybe.... If anything, booming crossover sales will make it harder on the mid-size truck segment.
  
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- Big Al from Oz on May 13, 2014
  
  @DiM It's good to see you are realizing that full size 1/2 ton pickups have become the domain of the SUV set, grocery getter. It good to see that you acknowledge that pickups are competing with SUVs. A global midizer can replace most of what a full size 1/2 ton does as well. You can make statements about the cab size or tow ratings and crap. But the reality is most 1/2 ton full size trucks don't have a scratch in the bed and tow air. If a full size was used for business purposes still a global midsize will do most of what a full size does. Remember don't use a US midsize for a comparison. You've been to Spain over 36 times you've obviously must of encountered a global midsizer with over 400ftlb of torque? The global midsize will come to the same eventual fate a the US full size 1/2 ton. Developing nations are going to keep the global midsize from becoming a full on SUV type vehicle like the US 1/2 tons future. You and your UAW friends are the end of the half ton pickup as we know it.
  
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JohnnyFirebird on May 13, 2014

I really liked the 2008 Sport Trac I owned - small enough that I could drive it downtown, comfy inside. The small bed was irritating (won't fit a mattress) but the fuel economy on the V8 wasn't terrible. Checking the resale value of it now, it really holds up - I am surprised. I should have kept the damned thing.

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Mikehgl on May 13, 2014

Just another example of healthy resale value for mid-size platform trucks. Why? Demand. Does that translate to new mid-sized truck sales demand? Ahhh....sorry I don't have an answer for that one.

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Jeff S on May 13, 2014

@Big Al--I have already noticed more businesses switching to the Ford Transit vans around me as delivery or service vehicles (heating, cooling, and plumbing companies). Many of the landscapers and builder/remodelers around where I live are not buying the half ton crew cab pickups but are driving 3/4 to ton trucks with diesels. Two guys I know personally have no interest in leather seats, navigation systems, or high performance gas powered V-8s. One who is a remodeler said he would much rather have an Isuzu midsize diesel (not a pickup but delivery size) than any of the half ton overdressed and less capable trucks. These guys get their trucks dirty and do not want to have to worry about messing a fancy interior up. As for crossovers, most women don't want a massive vehicle unless they have a family and pets and most full size half ton pickups have become massive. That is one reason I drive midsize trucks because my wife is short and she will not drive a large vehicle. I think midsize trucks have a chance if they have not too small of a bed, get better mpgs, and there is enough of a price difference to give them an chance. I do agree Al that the price of pickups will go up with aluminum bodies and other expensive materials used. Aluminum will go up in price as Ford and eventually GM and Chrysler use more of it. Manufacturers will still make large profits on trucks but they will not sell as many which is not entirely a bad thing.

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