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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.

2015 Chevy Tahoe, Suburban and GMC Yukon unveiled

General Motors has today unveiled its new family of fullsize SUVs, including the 2015 Chevy Tahoe, its longer Suburban sibling, and their GMC Yukon, Yukon XL and Yukon Denali cousins. More efficient powertrains, improved aerodynamics, increased connectivity and better overall refinement are what Chevy and GMC say will separate their new SUVs from the current generation.
Sporting a tried-and-true body-on-frame architecture, these full-size SUVs feature platforms that are stronger and offer a wider rear track for "a more planted stance," according to Chevy and GMC. Mounted at the front of each SUV is an EcoTec3 powertrain, which consists of a standard 355-horsepower, 5.3-liter V8 (or a 420-hp, 6.2-liter V8 for the GMC Yukon Denali alone) with direct injection, cylinder deactivation and continuously variable valve timing, that's paired with a Hydra-Matic 6L80 six-speed automatic transmission. The setup is said to be more efficient than before, though official EPA fuel economies for each vehicle are not yet available. To help the powertrain achieve the best possible fuel economy in these 5,000+ pound SUVs, the new styling was developed with aerodynamics in mind. For the same reason, electric power steering also makes its debut in the Tahoe/Suburban/Yukon family.
The front fascias of the Chevy Suburban/Tahoe and GMC Yukon are distinct, but from the base of the A-pillars back, they share most of the same styling cues. This now includes inlaid doors that tuck into the door sills, instead of over them, which improves aerodynamics and fuel economy, and lessens interior noise. The hoods and liftgate panels now are made of aluminum in an effort to reduce vehicle weight. Chevy and GMC also tout that the Tahoe/Suburban and Yukon don't share a single piece of sheetmetal or lighting element with the brands' full-size pick-up trucks.

GMC considers adding more vehicles to broaden product line

GMC is considering expanding its product portfolio in the next 10 years to allow it to reach more potential buyers and grow sales, a top executive said Monday. The small and midsize sport-utility-vehicle segments are two possibilities, said Duncan Aldred, GMC sales and marketing vice president. He also said GMC won't make a car, preferring to reinforce its reputation as a maker of trucks and SUVs. "There's plenty of opportunities even if we define ourselves as a we do as a truck and crossover brand," he said. He wouldn't comment on the possibility of adding a Jeep Wrangler-fighter, though rumors have swirled for months that GMC is considering a product to compete with the iconic off-roader. "I can't confirm that ... everything's on the table," he said. He also said that it's possible GMC could get a unique set of underpinnings – all of its vehicles share platforms that are also used by Chevrolet – but it's not needed to differentiate his brand. "I'm very happy sharing underpinnings and everything else," he said. "All of the good-performing automakers do that." Speaking to journalists at a roundtable at General Motors headquarters in Detroit, Aldred said GMC received an investment from GM that is double what the brand has historically spent to fund its growth plans. Advertising spending alone will increase 50 percent this year compared with 2014. The brand rolled out a new ad campaign on Monday, called "Precision," that will underscore attention-to-detail and the premium features of GMC vehicles. Two of the commercials have a sporting theme, and the third focuses on modern menswear. GMC called it a "contemporary interpretation" of the brand's traditional positioning, and it will also continue to use its long-running "Professional Grade" tagline. The premium positioning of the ads come as buyers are increasingly outfitting their trucks as near-luxury vehicles. The percentage of buyers opting for the top-end Denali trim has increased from 17 percent in the middle of 2014 to 21 percent now. The goal is to get Denali to make up 25 percent of GMC sales by the end of 2017, Aldred said. Spurred by the higher Denali take-rate, the brand's transaction prices leapt by $3,000 last year. "It's [Denali] really kind of this jewel in the crown," Aldred said. GMC sales increased 11.3 percent in 2014 to 501,853 units, making it GM's-second-best-selling brand behind Chevrolet.