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May 2016: FCA wins, Ford and GM stumble on weak car volumes

The May 2016 sales numbers are in, and it looks as though FCA is getting some vindication for boldly cancelling two slow-selling car models. Meanwhile, Ford saw overall sales dip and GM's May volume took a big dive versus the same month in 2015. While Marchionne's decision to axe the Chrysler 200 and Dodge Dart has drawn criticism as being short-sighted, it's working for FCA so far. Although the Dart and 200 aren't out of production yet and no capacity has been shifted to crossover or trucks, May's numbers show that the emphasis on Jeep and Ram models makes sense right now. FCA's US sales rose 1 percent last month compared to May 2015, putting the year-to-date total at 955,186 vehicles, an increase of 6 percent compared to the same period last year. Standouts included the Jeep Renegade, Compass, and Patriot, and the Fiat 500X. Ram pickup sales were down 3 percent. And your fun fact is that Alfa Romeo sales were up precisely 10 percent, for a total of 44 4Cs sold versus 40 in the same month last year. At FoMoCo, the Ford brand took a hit to the tune of 6.4 percent from May 2015 to 2016, registering 226,190 sales last month. Lincoln showed improvement on its modest numbers, going from 9,174 to 9,807, a 6.9 percent increase. Overall, Ford was down 5.9 percent for the month to 235,997; despite the slump, year-to-date total Ford sales are up 4.2 percent to 1,112,939. Strong sellers included Escape, Expedition, F-Series, and Transit - big stuff. Most small and/or efficient models (Fiesta, Focus, Fusion, C-Max) saw sales slides. Fusion sales were also down, likely due to effects of model changeover to the freshened 2017 model. Ford has promised four new crossovers and SUVs by 2020 and if things keep trending this way the company will be able to sell them, but things could change in the next four years. GM saw the worst of it for domestic brands. Retail and fleet sales were down for each of the four divisions, with the May 2016 total dropping 18 percent to 240,450 vehicles. GM's year-to-date sales are down 5.0 percent in 2016 to 1,183,705. Both the Sierra and Silverado were down significantly, and the majority of Chevy, Buick, GMC, and Cadillac nameplates saw sales decreases, with both small cars and larger utilities included. Not even big stuff could help GM this month, it seems. We'll have more on the rest of the industry's May sales as those figures trickle in.

Here's why automakers roll out those Texas-themed pickup trucks

Every year, automakers with a full-size truck link make a big show of the Texas State Fair, usually involving a reveal of a new model. Sometimes they show a whole new truck, and other times a special edition centered on the Lone Star state. While some people might write this off as a quirk of the industry, others might be wondering, "What's the big deal with Texas?" As it turns out, part of the big deal with Texas is big truck sales. According to Dave Sullivan, product analysis manager at AutoPacific, Texas buys more trucks than any other state in the country. It's not a small margin either. Edmunds.com, one in five trucks sold in the US are sold in Texas. The state also accounts for 15 percent of the country's large truck sales, which is more than twice that of California, the second largest truck market in America. Even when you break down sales only in Texas, trucks are a huge piece of the pie - Sullivan says that a quarter of new vehicle sales in Texas are trucks. One in five trucks sold in the US are sold in Texas. But it's not just sales that make truck builders give attention to Texas. As Sullivan explained, "Pickups are life in Texas." Both he and Hugh Milne, marketing and advertising manager for the Chevy Silverado line, said that trucks are key fixtures in Texas society, as both work trucks and luxury vehicles (or Texas Cadillacs as Milne called them). Milne said Texas is so important in the truck market that if you want to be successful in the rest of the country, "you've got to be successful in Texas." As for the State Fair, it has become a prime location for reveals in part because of the importance of the Texas market and because of how big the fair is. Milne also revealed that the State Fair also hosts its own auto show, so it's an ideal venue for a vehicle introduction. So there you have it. Why do truck builders obsess over Texas? It's because Texas obsesses over trucks. When you have one market that loves your product that much, you give it the attention it deserves. Related Video: Image Credit: Donovan Reese via Getty Images Auto News Marketing/Advertising Chevrolet Ford RAM Truck f-150 texas state fair

GM to invest $150 million in Flint to boost heavy-duty pickup production

FLINT, Mich. — General Motors President Mark Reuss said on Wednesday that the automaker is investing about $150 million at its Flint Assembly plant in Michigan to boost production of heavy duty trucks by another 40,000 vehicles a year. Reuss announced the investment at the Flint truck assembly plant wearing a United Auto Workers pin. The Detroit automaker had announced back in February it was adding 1,000 jobs in Flint to build a new generation of heavy-duty pickup trucks. GM did not say that the latest investment would add more jobs at the plant, but Reuss said there could be opportunities to add workers as the launch of the automaker's new trucks progresses. GM has been under pressure from President Donald Trump and lawmakers of both parties to add jobs in the United States after it said last November it would idle the Chevy Cruze assembly plant in Lordstown, Ohio, and likewise had no new products for three other U.S. manufacturing plants. The Flint investment will include upgrades to the plant's conveyors and other new tooling, and will be completed in the first half of 2020. GM has invested more than $1.6 billion in the plant since 2013. Last month, GM said it would invest $24 million to increase truck production at its assembly plant in Fort Wayne, Indiana, which makes Chevrolet Silverado and GMC Sierra models. Sales of heavy-duty pickups in the United States have grown to more than 600,000 vehicles a year, up more than 20 percent since 2013, according to industry data. Prices for luxury models can easily top $70,000. GM's Chevrolet and GMC brands have long trailed Ford's F-series heavy duty trucks in the lucrative segment. The new Chevrolet and GMC heavy duty trucks have been re-engineered to tow heavier trailers, and keep pace in what has become an arms race among the Detroit Three automakers to claim superior torque and towing capability. Related: Silverado HD vs. 2019 Ram, Ford heavy duty trucks: How they compare on paper