Ford-Chrysler Pickup Sales in U.S. Pace Automakers’ Best Year Since 2007

[Purveyor]

Last edited Mon Jun 3, 2013, 05:06 PM - Edit history (1)

Source: Bloomberg

Ford Motor Co. (F) and Chrysler Group LLC reported U.S. sales gains that exceeded analysts’ estimates as surging demand for F-Series and Ram pickups pace the industry’s best year since 2007.

Deliveries of cars and light trucks climbed 14 percent for Ford and 11 percent for Chrysler, according to company statements. Nissan Motor Co. (7201) sales rose 25 percent, also beating analysts’ estimates. General Motors Co. deliveries increased 3.1 percent, Toyota Motor Corp. (7203)’s gained 2.5 percent and Honda Motor Co. rose 4.5 percent, all less than analysts had estimated.

The full-size pickup market expanded 20 percent this year through April, almost triple the increase for all U.S. light vehicles, according to researcher Autodata Corp. Ford, Chrysler and GM (GM), which dominate domestic truck sales, are marketing more efficient pickups as rebounding housing and energy sectors boost demand.

“All the trucks have gotten a lot of attention for their improvement in fuel economy,” Alan Baum, an automotive analyst at Baum & Associates in West Bloomfield, Michigan, said by telephone. “The new ones from GM are on their way out, Chrysler’s fuel economy is better and the Ford fuel economy has been better. They’ve been able to make the improved operating cost case to the buyer who is doing the arithmetic.”

Read more: http://www.sfgate.com/business/bloomberg/article/Ford-to-Chrysler-Pickup-Surge-Paces-U-S-Auto-4571796.php

[OKNancy]

1. need the link

I tried to find it for you but didn't see it. Bloomberg may have changed the title ( it happens)

[NickB79]

2. Gas is $3.80/gal and we're getting pummeled by global warming

And Americans are out buying new trucks that get a "whopping" 22 mpg on the highway. Oh hooray

[happyslug]

3. 14% and a 11% increase is NOT that much.

Remember, we had a SEVERE drop in truck sales since 2005



http://news.pickuptrucks.com/2009/01/2008-year-end-t.html

Between 2005 and 2008 pickup sales went from over 3 million a years to under 2 million a year (i.e. a 33% DROP).

Truck sales in 2008:
http://www.pickuptrucks.com/html/otf0999.html

Sales were WORSE in 2009:

No. 1: Ford F-Series
413,625 -19.8% YTD
December 2009: 48,209
December 2008: 41,580

No. 2: Chevrolet Silverado
316,544 -31.9% YTD
December 2009: 33,301
December 2008: 33,340

No. 3: Dodge Ram
177,268 -28.0% YTD
December 2009: 12,014
December 2008: 16,618

http://news.pickuptrucks.com/2010/01/2009-year-end-top-10-pickup-truck-sales.html

Now, there was a reversal in 2010:
http://news.pickuptrucks.com/2011/01/2010-year-end-top-10-pickup-truck-sales.html

And a Lesser Increase in sales in 2011 and 2012:
http://news.pickuptrucks.com/2011/12/november-2011-top-10-pickup-truck-sales.html

http://news.pickuptrucks.com/2013/01/december-2012-top-15-pickup-truck-sales.html

The problem is, in 2012, sales barely caught up to the LOW number of 2008:
http://wot.motortrend.com/american-full-size-pickups-top-u-s-truck-sales-in-2012-310663.html#axzz2VBhwEEt1

Thus starting in 2010, pickup sales increase to the level in had been in 2008, recovering from the low sales of 2009, but it took to 2012 for sales to catch up with what was sold in 2008, i.e. four years to recover, and that point is 1/3 less then the number of pickup sold in 2005.

Pickup sales have bottomed out, as was expected a lot of construction workers, farmers and other people who use these trucks as tools finally had to replace their old ones. Thus we have seen a steady increase in sales since 2010.

As to the percentages, lets remember 3 million to 2 million is a 33% drop in sales, but a 2 million to a 3 million in sales is a 50% increase in sales (In a decrease you use a percentage of the LARGER number, in an increase you use a percentage of the SMALLER number i.e. 1 million is 33% of 3 million, but 50% of 2 million). Thus it takes a higher level of increase percentage of sales to offset a percentage decrease in sales.

Thus sales are up, but barely over the 2008 level and no where near the 2005 levels of sales.

[Socal31]

4. Sub-prime auto lending.

Not nearly as dangerous as the housing bubble, but it is the reason for some auto maker's sales volume right now.

[ForgoTheConsequence]

5. Most people who buy these don't need them.

My cousins for example. Both drive brand new F-150's, they sell insurance. Whenever I hear a person who drives an SUV or a full size pickup (that doesn't need it) complain about gas, all I can go is laugh.

[appal_jack]

6. ...and some of us do.

My 1996 F-250 is barely powerful enough (anymore) to tow my tractor, which with 20' trailer and implement(s) will total around 10,000 lbs. With that load, I top-out at 35 mph before getting nervous. I can't afford a new truck, so I'm making do, and haven't towed the tractor anywhere in more than a year (last few times I needed to move it, I just drove the tractor on the road, which is legal in NC between farms that are within 10 miles of each other). But a few weeks back, when I was towing a ~2,000 lb. implement on a 16' trailer, I ripped off my old, rusted trailer hitch. Glad it happened in a pasture, rather than on the highway at 60 mph. Fortunately, my bumper was in better shape, so a buddy lent me a spare 2" ball which we put on the bumper, and I was able to get the implement and trailer to where it needed to be that day.

My smaller vehicle is a Toyota RAV 4, which of course never tows anything, but is still the most efficient vehicle that can get on many of the roads I have to drive for work.

But my wife drives a Honda Fit, so whenever we don't need towing capacity or ground clearance, that's what we drive...

-app