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.
More by Derek Kreindler
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@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.
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.
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.
@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.