By on December 18, 2017

chevy 350

In case you’ve just exited a 60-year coma or immigrated to this country without any prior knowledge of it, Americans have a fondness for pickup trucks. So do automotive manufacturers. Last month, the average selling price for full-size pickups was $47,393. For General Motors, that translates to about $11,000 in profit for each truck sold — but the ceiling is even higher. Two years ago, Ford was rumored to be making $13,000 on each F-Series sold and its domestic competitors weren’t far behind.

Meanwhile, the average haul for an SUV or crossover isn’t likely to surpass $2,000 on its very best days and car profitability is typically even lower (unless you’re Porsche). That’s why “Truck Month” seems to take place five times a year. It’s also why domestic manufactures are going to ensure pickups “dominate” the 2018 North American International Auto Show. Of course, was there ever a year when Detroit’s automotive trade show wasn’t at least partially overrun with trucks?  (Read More…)

By on February 27, 2017

2017 Chevy Silverado 1500 W/T

The pickup is as much of a stereotypical American icon as gun ownership and throwing things away. Last year was a particularly good one for trucks, with Ford F-Series sales reaching pre-recession volume and a 10-year high and Ram recording a seventh year of growth. However, with sales peaking for the other domestic labels, General Motors’ share of the market shrunk.

What’s the solution to whatever consumers find lacking with GM’s product? A price war, of course. While Ford Motor Company and Fiat Chrysler Automobiles are scaling back, GM upped incentives from last February by 56 percent for the Chevrolet Silverado and 82 percent for the GMC Sierra. With the pickup segment being so important in North America, nobody wants to lose ground. Aggressive discounts are often the only way to overwhelm brand loyalty, but the practice is also guaranteed to eat into profits while annoying the competition. (Read More…)

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