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Deep discounts — $12K, $13K, $16K — are fueling a pickup price war

Heavy discounts of up to $16,000 per vehicle are fueling a "truck war" among full-size pickups sold in the United States by the Detroit Three, a Reuters analysis shows. Strong U.S. sales this year of the highly profitable big trucks have helped offset lagging passenger car sales. But it is not clear how much of the truck demand is linked directly to ample factory incentives and dealer discounts, or how far sales might decline without those subsidies. A Reuters survey of Ford, General Motors Co's Chevrolet and Fiat Chrysler Automobiles's Ram truck dealers across the United States indicates stores are offering deep discounts the country's bestselling full-size pickup trucks. "The walls are not crashing down on full-size trucks," said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions in Chester Springs, Pennsylvania. Detroit-based automakers want to keep cranking out their high-margin trucks, he added, and "giving up a little of the profit is the cheapest way to do it." Stores are offering discounts of up to $12,000 on the 2018 Ford F-150, which remains the best-selling vehicle in the country, recording more than 80,000 sales in May. Discounts run up to $13,000 on the 2018 Chevrolet Silverado and as high as $16,000 on the Ram 1500. Average transaction prices for full-size pick-ups range from around $42,000 to $45,000, industry analysts and automakers say. All three companies are spending furiously - GM and Fiat Chrysler to help sell off carryover 2018 trucks to prepare for redesigned 2019 models, and Ford to sustain its long-held sales crown. A supplier fire that temporarily shut down production of the F-150 last month "changed the game," said Jeff Schuster, senior vice president of forecasting at LMC Automotive in Troy, Michigan said. The supply halt nudged Ford's crosstown rivals "to ratchet up incentives on the current models to go after weakness at Ford," he said. Deals advertised on the companies' official websites range from rebates and low-interest loans to ultra-cheap lease rates, but they are not telling the whole story. Ford, for instance, advertises a $2,000 rebate and a $500 financing credit on sales of certain F-150 models. But James Collins Ford in Louisville, Kentucky, is offering discounts of up to $12,215 on the 2018 F-150 XLT SuperCrew 4x4. The price cuts are even steeper at a number of GM and Fiat Chrysler dealers. Quirk Chevrolet is selling the 2018 Silverado 1500 Double Cab at $13,000 off sticker.

GMC Terrain headlight recall fix is a sticker

This GMC Terrain recall over a headlight issue has gone from fascinating to absurd. It started when GMC discovered the headlights on the 2010-2017 Terrain were out of compliance with Federal Motor Vehicle Safety Standards (FMVSS). A pinpoint of low-beam light was being reflected off the high-beam reflector. This bounced a tiny sliver of bright light up into the trees and the sky beside the road, not into oncoming traffic. GMC did the right thing, reporting the noncompliance to the National Highway Traffic Safety Administration. Because the sliver of light was coming from the low beams and was four times brighter than the maximum allowable low beam brightness, the NHTSA told GMC to recall 740,581 units of the SUV. GMC asked for an exemption, admitting the bright spot could cause glare while noting the errant beam didn't affect other road users. The automaker hadn't received any complaints, only a comment from one owner saying the lights put a bright spot in the trees on the other side of the road. The NHTSA denied the request. GMC began notifying owners in April that they'd need to come in for a fix once a fix had been developed. That's the fascinating part. The absurd part, which Tire Meets Road uncovered, is that the fix is a "Headlamp Applique Kit." Which is a piece of frosted tape applied to the outside of the headlight that lets low-beam light through and tamps down any potential glare from the caroming beam. Notice that the parallelogram of frosted tape matches the L-shaped frosted area along the inside of the headlight housing. That portion was already a feature of the lamp, as can be seen in our 2016 Terrain Denali Quick Spin. The repair needs a trip to the dealer for a tech to place a positioning template over the headlight and put the applique kit in the proper spot. GM's instruction kit says the whole thing should take 0.2 of an hour, or 12 minutes—about the time it it would take to get checked into and out of the dealership service department. Owners aren't impressed, some calling the fix unnecessary and ridiculous, and the tape should make it clear that GMC feels the same way. Some owners have said they're going to skip the recall. Those drivers will find that just as GMC couldn't escape the legal ramifications, neither can they. Local motor vehicle bureaus keep track of recall compliance.

GM extends vehicle production cuts into mid-March due to global chip shortage

DETROIT — General Motors said on Tuesday it was extending production cuts at three North American plants until at least mid-March due to the global semiconductor chip shortage, while vehicles at two other factories would only be partially built. GM, whose shares dipped 1% after the announcement, did not disclose the impact volumes or say which supplier and vehicle parts were affected by the chip shortage. But it said it would focus on keeping production running at plants building its highest-profit vehicles, full-size pickup trucks and SUVs. GM said it intended to make up as much lost production as possible once the shortage chip eased. "Semiconductor supply remains an issue that is facing the entire industry. GM's plan is to leverage every available semiconductor to build and ship our most popular and in-demand products," GM spokesman David Barnas said. GM said it was extending downtime at its U.S. plant in Fairfax, Kansas, its Canadian factory in Ingersoll, Ontario, and its Mexican facility in San Luis Petosi until mid-March when it would reassess the situation, he said. In addition, GM would build but leave incomplete for final assembly vehicles at Wentzville, Missouri, and its Mexican plant at Ramos Arizpe. GM vehicles affected by the idled plants include the Chevrolet Malibu sedan, Cadillac XT4 SUV, Chevy Equinox, and GMC Terrain SUVs. Vehicles to be left incomplete for now included the Chevy Colorado, GMC Canyon pickups and Chevy Blazer SUV. This week, GM had said it was idling the three factories where it has now extended downtime and said it would halve production at a plant in South Korea. The chip shortage has affected many automakers, including Toyota, Volkswagen, Stellantis, Ford, Renault, Subaru, Nissan, Honda and Mazda. Asian chipmakers are rushing to boost production but say the supply gap will take many months to plug. German chipmaker Infineon said the shortage would get worse in the near term. The chip shortage is expected to cut global output in the first quarter by more than 670,000 vehicles and last into the third quarter, IHS Markit said. AutoForecast Solutions estimated total lost production this year could reach 1 million vehicles. Honda and Nissan said on Tuesday they would sell 250,000 fewer cars in total this financial year due.