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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.

Ford opens research center in Silicon Valley

These days, the software running a vehicle's myriad of electronic systems seems to be getting nearly as much development focus from automakers as the traditional mechanical parts that keep a car going. Constantly improving that technology requires a lot of experimentation, though, and Ford is expanding its presence in Silicon Valley with the just-opened Research and Innovation Center Palo Alto to make that progress possible. Ford opened its first office in the country's technological hub in 2012 to draw talent and devise ways to deal with vast amounts of sensor data. Apparently, setting up shop in Silicon Valley was deemed a success because the Blue Oval decided to create this new lab in the Stanford Research Park to focus on five areas: connectivity, mobility, autonomous vehicles, customer experience and analytics. Among the center's potential projects, Ford is hoping to develop better natural speech recognition, which is absolutely vital for improving infotainment systems. Assuming the tech eventually works well enough, your voice might even be used to adjust a vehicle's power seats, according to the automaker. The Blue Oval is also letting engineers from Stanford University test autonomous driving algorithms on a self-driving version of the Fusion. In a smaller stakes venture, researchers are working to get a Nest smart thermometer to automatically adjust the temperature at home depending on if an owner's vehicle is leaving or coming back. To really show that its serious about these ventures, Ford hired Dragos Maciuca away from Apple as the center's technical leader. The automaker also wants to have 125 researchers at work there by the end of the year.

TRANSLOGIC 147: CES 2014 Autonomous Vehicles

We head back to CES in Las Vegas to check on the progress of autonomous vehicles in 2014. We go hands-free on the highway with Audi, narrowly avoid a collision with Ford and hear all about BMW's drifting driverless car. But first we take a ride on Induct's self-driving Navia shuttle.