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Detroit Three's lucrative pickup war intensifies as Ram makes big gains

DETROIT — The battle for profits from sales of large pickup trucks is intensifying among the Detroit Three automakers as sales of small cars in the United States shrivel. For decades Ford has had the single best-selling truck brand in its F-Series trucks. General Motors' Chevrolet brand was a solid No. 2, and Fiat Chrysler Automobiles' Ram was a distant third. Now, that hierarchy may be in flux. Sales figures for December and the fourth quarter released on Thursday show Ram tied with GM's Chevy for the No. 2 spot, as sales of the redesigned Ram pickup surged, fueled in part by demand for an optional 12-inch (30.48 cm) dashboard screen. Chevy not long ago held second place to Ford by a wide margin. GM executives said on Thursday they are bullish on their new GMC and Chevy trucks for 2019.Related: How the Detroit Three's pickups compare on paper 2019 Ram 1500 Laramie review 2019 Chevy Silverado 2.7L four-cylinder review 2019 Ford F-150 2.7L EcoBoost review "There's no doubt this segment (pickup trucks) is one of the epicenters of the auto wars," said Sandor Piszar, director of marketing for Chevrolet at GM. "It's been that way forever, and we wouldn't have it any other way." On Wall Street, investors give electric car leader Tesla a higher valuation than any of the Detroit automakers. But in the nation's heartland, big pickups remain far more popular and profitable than any electric car — and most other consumer vehicles of any kind. Large pickups generate at least $17,000 a vehicle in pretax profit for GM, the company has indicated in disclosures to investors. By contrast, many Detroit Three sedans are so unprofitable, their manufacturers have decided not to build them anymore. 'Hotly contested' Sustaining sales and pricing in the large-pickup segment will be critical in a year when most forecasters expect overall U.S. car and light truck sales to fall. Ford's U.S. sales chief, Mark LaNeve, on Thursday called the F Series "the backbone of our franchise" during a conference call, and added the "segment will continue to be strong, but hotly contested" in 2019. Automakers are banking on pickup truck sales to stay strong even if U.S. interest rates continue to rise. Rising interest rates translate into higher monthly car payments and are expected to deter some buyers in 2019. GM has said 27 percent of Chevrolet and GMC trucks — which can haul trailers by day and substitute for a luxury sedan by night — sell for more than $55,000.

Consumer Reports criticizes small turbo engines for misleading performance, fuel economy claims [w/video]

Consumer Reports has taken aim at at small-displacement, forced-induction engines, saying the powerplants don't manage to deliver on automaker fuel economy claims. Manufacturers have long held that smaller, turbocharged engines pack all power of their larger displacement cousins with significantly better fuel economy, but the research organization says that despite scoring high EPA economy numbers, the engines are no better than conventional drivetrains in both categories. Jake Fisher, director of automotive testing for Consumer Reports, says the forced induction options "are often slower and less fuel efficient than larger four and six-cylinder engines."
Specifically, CR calls out the new Ford Fusion equipped with the automaker's Ecoboost 1.6-liter four-cylinder engine. The institute's researchers found the engine, which is a $795 option over the base 2.5-liter four-cylinder, fails to match competitors in acceleration and served up 25 miles per gallon in testing, putting the sedan dead last among other midsize options.
The Chevrolet Cruze, Hyundai Sonata Turbo and Ford Escape 2.0T all got dinged for the same troubles, though Consumer Reports has found the turbo 2.0-liter four-cylinder in the BMW 328i does deliver on its promises. You can check out the full press release below. You can also read the full study on the Consumer Reports site, or scroll down for a short video recap.

Jim Farley to lead Ford of Europe

"We are excited to see Jim and Stephen take on these new roles as they bring unique skills, experience and fresh perspectives to these critical positions." - Mark Fields
Ford marketing chief Jim Farley is taking over the company's troubled European operations as part of an executive shuffle confirmed on Friday morning.