GM Squares Off in $90 Billion Pickup Fight
#1
GM Squares Off in $90 Billion Pickup Fight
Good article from Bloomberg, look like '18 is going to be a no holds barred match among the big 3 for trucks.
The only thing this article leaves off is the new truck coming out of Jeep and this time the truck will be based upon the Jeep Wrangler and expect its going to pull a lot of sales in the light duty market. IMO in the Superduty market I think Ford is holding the cards and its theirs to lose. All this bids well for us the buyers.
Worth your time to read
Ford’s momentum with F-Series model line is targeted by rivals
Forget about electric cars with fuzzy prospects for profit or robotaxis that don’t yet exist. Detroit’s real big-money grudge match is over pickup trucks -- and it’s about to get nasty.
General Motors Co. and Fiat Chrysler Automobiles NV are planning to show redesigned full-size models at the Detroit auto show in January and start selling them later in the year. Both are trying to steal back some of the momentum that rival Ford Motor Co. has generated by overhauling its F-150 and bigger Super Duty trucks.
The stakes are massive. Detroit’s three automakers sell more than 2 million large pickups a year in the U.S., generating annual revenue of more than $90 billion. Morningstar Inc. estimates that profits are at least $10,000 per truck -- and even more for high-end models -- compared with about $3,000 for passenger cars. That’s why the three companies invest so much to develop their pickups, and fight hard for every sale.
“There will be a pickup war this year,” said Morningstar analyst David Whiston. “It will make a fiercely competitive market even more competitive than it has been.”
The Detroit Three will battle it out in two ways. First, Fiat Chrysler will start selling its new truck around the end of the first quarter, and GM will begin building the new Chevrolet Silverado and GMC Sierra pickups around the beginning of the fourth quarter, said Dave Sullivan, manager of product analysis for market researcher AutoPacific Inc.
While they prepare those new models, the automakers also will continue to offer discounts to move older trucks within a broader U.S. auto market that’s slowly shrinking. In November, GM’s Chevy had discounts of $5,343 on the Silverado, while Fiat Chrysler’s Ram offered an average deal of about $5,000. Ford’s F-Series has discounts of $4,135, according to data from J.D. Power. GM trucks have higher prices, so its discounts are smaller on a percentage basis than what Fiat Chrysler offers, said Jim Cain, a GM spokesman.
Newly designed models usually require less discounting and by the end of 2018 all three will have brand-new trucks or, in Ford’s case, pretty fresh ones, Sullivan said.
GM Revamp
GM’s new models will showcase a big change in the nuts and bolts that make trucks a practical, yet popular choice, Sullivan said. With every new model, GM has been adding aluminum or lightweight steel, taking out hundreds of pounds of weight. That will boost fuel economy and possibly help towing capabilities, he said.
Read the rest: https://www.bloomberg.com/news/artic...n-pickup-fight
The only thing this article leaves off is the new truck coming out of Jeep and this time the truck will be based upon the Jeep Wrangler and expect its going to pull a lot of sales in the light duty market. IMO in the Superduty market I think Ford is holding the cards and its theirs to lose. All this bids well for us the buyers.
Worth your time to read
Ford’s momentum with F-Series model line is targeted by rivals
Forget about electric cars with fuzzy prospects for profit or robotaxis that don’t yet exist. Detroit’s real big-money grudge match is over pickup trucks -- and it’s about to get nasty.
General Motors Co. and Fiat Chrysler Automobiles NV are planning to show redesigned full-size models at the Detroit auto show in January and start selling them later in the year. Both are trying to steal back some of the momentum that rival Ford Motor Co. has generated by overhauling its F-150 and bigger Super Duty trucks.
The stakes are massive. Detroit’s three automakers sell more than 2 million large pickups a year in the U.S., generating annual revenue of more than $90 billion. Morningstar Inc. estimates that profits are at least $10,000 per truck -- and even more for high-end models -- compared with about $3,000 for passenger cars. That’s why the three companies invest so much to develop their pickups, and fight hard for every sale.
“There will be a pickup war this year,” said Morningstar analyst David Whiston. “It will make a fiercely competitive market even more competitive than it has been.”
The Detroit Three will battle it out in two ways. First, Fiat Chrysler will start selling its new truck around the end of the first quarter, and GM will begin building the new Chevrolet Silverado and GMC Sierra pickups around the beginning of the fourth quarter, said Dave Sullivan, manager of product analysis for market researcher AutoPacific Inc.
While they prepare those new models, the automakers also will continue to offer discounts to move older trucks within a broader U.S. auto market that’s slowly shrinking. In November, GM’s Chevy had discounts of $5,343 on the Silverado, while Fiat Chrysler’s Ram offered an average deal of about $5,000. Ford’s F-Series has discounts of $4,135, according to data from J.D. Power. GM trucks have higher prices, so its discounts are smaller on a percentage basis than what Fiat Chrysler offers, said Jim Cain, a GM spokesman.
Newly designed models usually require less discounting and by the end of 2018 all three will have brand-new trucks or, in Ford’s case, pretty fresh ones, Sullivan said.
GM Revamp
GM’s new models will showcase a big change in the nuts and bolts that make trucks a practical, yet popular choice, Sullivan said. With every new model, GM has been adding aluminum or lightweight steel, taking out hundreds of pounds of weight. That will boost fuel economy and possibly help towing capabilities, he said.
Read the rest: https://www.bloomberg.com/news/artic...n-pickup-fight
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I thought Chevy had square wheel wells and Ford had round.
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