Pickup prices rising at 2x industry average
Just how important are trucks to automakers' bottom lines? Automotive News quotes a Morgan Stanley analyst as saying the Ford F-Series is responsible for 90 percent of the company's 2012 profits, and General Motors isn't far behind, with the Chevrolet Silverado and GMC Sierra twins chipping in about two-thirds of the automaker's earnings.
Automotive News points out that Detroit's automakers now have the money to invest in modernizing their full-size truck offerings, in part because they don't have the same overhead and legacy costs that pushed General Motors and Chrysler into bankruptcy. Certainly, the pickup segment has seen a lot of innovations as of late, including turbocharged V6s, coil-spring rear suspensions and active aero. Those improvements in important areas like fuel economy and ride comfort have given existing pickup buyers new reasons to upgrade. In addition, automakers are piling on the tech and luxury goodies, creating more and more high-content, high-profit models like the Ford F-150 King Ranch, Ram 1500 Laramie Longhorn and Chevrolet Silverado High Country (shown).
The near-term picture for pickup sales looks rosy, too – much of the segment's recent gains have come without a commensurate boost in new housing increases, traditionally one of the key indicators for pickup sales. With the economy's slow but upward trajectory, analysts are predicting a rebound in the housing market that could drive pickup sales levels to volumes unseen since 2004 and 2005.
- Most and least efficient car companies
- Fastest-depreciating cars in the United States
- Find and compare 2017 Models