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There's an impending shortage of new trucks in America's heartland

URBANDALE, Iowa — Jerry Bill is worried the novel coronavirus could hurt business at the Des Moines auto dealership he runs, but not because of a shortage of buyers for the big Ram pickups on his lot. "Our biggest issue will be if we don't get more inventory," said Bill, general sales manager of Stew Hansen Chrysler Dodge Jeep Ram, which sells around 2,700 new vehicles a year in Urbandale, a suburb of Iowa's capital Des Moines. After a drop in sales in April when consumers stayed home, Bill expects pickup truck sales to end May similar to where they were a year earlier. And if demand remains strong, Bill said he will run out of popular models in June. Fiat Chrysler began slowly restarting Ram truck assembly lines on Monday after a two-month shutdown. The U.S. economy contracted in the first quarter at its sharpest pace since the Great Recession of 2007-2009 because of lockdown measures aimed at slowing the spread of the coronavirus. Economists warn the second quarter will be much worse. Still, far from the lockdowns of states like New York, Michigan or Ohio, dealerships like Stew Hansen have provided FCA and Detroit rivals General Motors and Ford a rare bright spot: strong sales of pickup trucks in America's heartland. Overall U.S. sales of cars and light trucks crashed to the weakest pace in 50 years last month. But sales of big Detroit brand pickups, particularly in southern and western states less affected by the outbreak, significantly outperformed the market, industry executives and analysts said. Pickup trucks are one of the most profitable automotive segments in the world. They account for a huge portion of the Detroit automakers' profits and formed a huge lure for Peugeot, which expects to merge with FCA by early 2021. The pressure is now on to boost pickup truck production and send vehicles to dealers in parts of the country with dwindling supplies. That is particularly true for GM, which is running short of certain truck models after losing 40 days of production to a strike last fall. "If you don't have what someone wants, they can choose to go to another brand," said Cox Automotive analyst Michelle Krebs. 'Easiest swap ever' Detroit automakers in March rolled out large discounts — such as interest-free loans for seven years — to keep vehicles rolling off dealer lots.

NHTSA investigating nearly 750,000 GM models over non-deploying airbags

Nearly 750,000 vehicles built by Chevrolet, GMC, and Cadillac are the subject of a National Highway Traffic Safety Administration (NHTSA) investigation due to non-deploying driver-side airbags. While the investigation is ongoing, the agency believes the issue is likely due to rust particles that form on the inflator's connection terminal interface. The list of nameplates included in the investigation includes Chevrolet's Silverado, Tahoe, and Suburban, GMC's Sierra, Yukon, and Yukon XL, plus Cadillac's Escalade, Escalade ESV, CT4, CT5, and XT4. All of the potentially affected vehicles are 2020 or 2021 models, according to a bulletin published on the NHTSA's website. Investigators launched the probe in April 2021 after 15 consumers reported airbag-related issues, including nine who said an airbag malfunction light appeared in the instrument cluster. More alarmingly, the NHTSA is aware of six accidents that caused significant damage to the car's front end yet didn't trigger the driver's airbag. It adds that there are no fatalities linked to the issue, but there are six crashes and eight injuries reportedly blamed on it. No evidence suggests this problem is related to the millions of potentially deadly Takata inflators recalled over the past few years. General Motors is aware of the defect. It sent a technical service bulletin (TSB) to its dealers in March 2021 to address the aforementioned warning light. The note explains the issue is due to "rust particles in the connection terminal interface of the driver's airbag inflator." The company hasn't issued a safety recall yet, however. Whether it will partially depends on the NHTSA's findings. It's currently looking into the scope and the severity of the problem, and it wants to understand its implications on driver safety. Investigators will decide whether General Motors needs to recall the 749,312 cars that are part of the probe when they close their investigation. General Motors has already spent a significant amount of money replacing defective airbag-related parts in its cars. In November 2020, it was ordered by the American government to recall nearly 6 million pickup trucks and SUVs equipped with potentially dangerous Takata airbag inflators. It repeatedly argued that testing proved the inflators were safe, and it petitioned the agency four times starting in 2016 to avoid a recall, which cost an estimated $1.2 billion (about a third of its net income in 2020).

2023 GMC Sierra prices up, start at $38,995 for Sierra Pro Regular Cab

It was only 90 days ago that GM Authority, typically a reliable source in these matters, reported on pricing for the 2023 GMC Sierra lineup before official numbers were released. Those early figures were apparently just placeholders. Now that GMC's uploaded the full 2023 configurator for the 2023 Sierra, not only are MSRPs higher except on the base trim, the destination charge has risen from $1,795 to $1,895. The sticker prices including destination and their changes from those late August sums are: Sierra Pro Regular Cab Standard Box 2WD Turbo 2.7L I4 L3B $38,995 ($1,025 less) SLE Double Cab Std Box 2WD Turbo 2.7L I4 L3B $52,095 ($1,100) Elevation Double Cab 2WD Turbo 2.7L I4 L3B $53,795 ($1,200) SLT Crew Cab Short Box 2WD 5.3L V8 L84 $57,795 ($1,300) AT4 Crew Cab Short Box 4WD Turbo-diesel 3.0L I6 LZ0 $68,595 ($1,495) AT4X Crew Cab Short Box 4WD 6.2L V8 L87 $83,595 ($3,395) Denali Crew Cab Short Box 2WD 5.3L V8 L84 $67,595 ($1,095) Denali Ultimate Crew Cab Short Box 4WD Turbo-diesel 3.0L I6 LZ0 $82,940 ($745) The Sierra's price bumps ranging from $745 to $3,395 come in tandem with the prices of the 2023 Chevrolet Silverado going up anywhere from $800 to $1,800. The $3,395 MSRP boost on the Sierra AT4X skews the price curve because of extra equipment. GMA reported in July that the standard AT4X would inherit parts from the Sierra ATVX AEV created in collaboration with American Expedition Vehicles. That's what's happened. A revised grille with gloss black and dark nickel trim, AEV front and rear bumpers with increased approach and departure angles, a hot-stamped hardened steel front skid plate inflate the cost and give the ATX4 a little more capability off-road. The equipment list also narrows the gap from the regular AT4X to the AT4X AEV, the latter going just a bit further with four more skid plates, AEV's Salta wheels, and a smattering of black trim around the body. We're still waiting for official pricing on the AT4X AEV. The image above shows shows how similar both trucks will look when the AEV arrives, with the standard AT4X on the left, the AT4X AEV on the right. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.