2011 Ram 1500 Slt on 2040-cars

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Trucks, SUVs — and Camry — shine in mixed U.S. January vehicle sales

DETROIT — Automakers posted mixed U.S. new vehicle sales data for January, with American consumers continuing to abandon passenger cars for the larger pickup trucks, SUVs and crossover models that manufacturers also love because they are far more profitable. Total industry auto sales for the month rose 1 percent versus January 2016. According to Autodata Corp, which tracks industry sales, the seasonally adjusted annualized rate (SAAR) of U.S. car and light truck sales in January fell to 17.12 million units from 17.44 million a year earlier. Analysts polled by Reuters had expected a January SAAR of 17.2 million units. U.S. auto industry sales fell 2 percent in 2017 to 17.23 million vehicles after hitting a record high in 2016 and are expected to drop further in 2018 despite a solid economy. Interest rates are rising and around 4 million late-model used cars will return to dealer lots this year to compete with more expensive new ones. Automakers have used consumer discounts to boost sales, a growing concern for observers who say this undermines resale values and profits. Discounts declined in January, but remained above 10 percent of manufacturers' recommended prices. ""I think the industry has accepted that (sales) volumes will fall somewhat in 2018 ... and I don't think the industry is going to go over the cliff with insane incentives," Mike Jackson, chief executive officer of AutoNation Inc, told Reuters after his company, the largest U.S. auto retail chain, posted a higher quarterly net profit. Mark Wakefield, head of the North American automotive practice for consultancy AlixPartners, had a gloomier perspective. The industry's less-than-stellar sales performance for January showed "we are now past the peak," he said. "Automakers are now selling the deal instead of the vehicle," he said. "That's a tough spot to be in because that treadmill is hard to get off once you're on it." General Motors January sales rose 1.3 percent, driven by a 16 percent rise in fleet sales. Sales to consumers fell 2.4 percent. GM posted strong gains for models such as the Silverado pickup truck and Equinox crossover model, while its passenger cars continued to struggle. Ford The Blue Oval posted a 6.6 percent sales decline for January, with retail sales down 4.3 percent. Sales of Ford's F-Series pickup trucks - America's best-selling vehicle brand for decades — rose 1.6 percent. Passenger cars were down more than 23 percent.

Pickup prices rising at 2x industry average

We've said it before, but bears repeating: Pickup trucks are the financial engines of America's automakers. Good thing, then, that the segment is in rude health - in fact, Automotive News is suggesting that pickup truck sales are arguably healthier than they were pre-recession, even though the segment's volume is still significantly down from where it was before the bottom fell out of the US economy. That's because per-unit profits on full-size trucks are skyrocketing, outpacing the industry's average price increases by more than double since 2005. According to data from Edmunds, the average transaction price of a full-size pickup is now $39,915 - a heady increase over the $31,059 average price in 2005 - a gain of over 8 percent after inflation is factored in.
Just how important are trucks to automakers' bottom lines? Automotive News quotes a Morgan Stanley analyst as saying the Ford F-Series is responsible for 90 percent of the company's 2012 profits, and General Motors isn't far behind, with the Chevrolet Silverado and GMC Sierra twins chipping in about two-thirds of the automaker's earnings.
Automotive News points out that Detroit's automakers now have the money to invest in modernizing their full-size truck offerings, in part because they don't have the same overhead and legacy costs that pushed General Motors and Chrysler into bankruptcy. Certainly, the pickup segment has seen a lot of innovations as of late, including turbocharged V6s, coil-spring rear suspensions and active aero. Those improvements in important areas like fuel economy and ride comfort have given existing pickup buyers new reasons to upgrade. In addition, automakers are piling on the tech and luxury goodies, creating more and more high-content, high-profit models like the Ford F-150 King Ranch, Ram 1500 Laramie Longhorn and Chevrolet Silverado High Country (shown).

FCA announces the winners of its Design Sketch Battle contest

Fiat-Chrysler Automobiles (FCA) designers Ralph Gilles and Mark Trostle announced the winner of the first Design Sketch Battle on their respective Instagram accounts. The 24-hour contest invited designers and enthusiasts from all over the world to submit their "wickedest and most outrageous designs for a Ram truck." Participants flooded the company's various social media accounts with creative submissions that did not disappoint. Ralph Gilles, FCA's head of design, selected submissions sent by Paul Piliste, Rezo Lomaia, Michael Stanfel, Morten Rabiee, and Joshua Reese. The sketches he selected all put a decidedly futuristic spin on Ram's design language, and one is a tribute to the original Power Wagon introduced in 1946. They embrace the company's rugged side with oversized wheels and ground clearance measured in feet, not inches. Don't look for street-oriented, low-to-the-ground performance -— like Gilles' own Tomahawk GTR sketch from 1995 — here. We've embedded his winners below. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Mark Trostle, the head of design for Ram and Mopar, published his top picks an hour after Gilles. He selected work by Bryan Johnson, Robin Mathew, Ricky Ryan Goimarac, Jon Sibal, and Sean Smith. His attention gravitated towards futuristic designs, too, but he channeled his inner hot-rodder by choosing what looks like a slammed quad-cab Ram with a front fascia and fender flares from a wide-body Challenger. His fifth pick is one we'd love to see in showrooms: it blends retro-inspired and modern styling cues in a street-oriented high-performance package. His winners are embedded below. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. In the world of Lego, designers can compete for the chance to add their one-off creation to the company's catalog of current and classic cars. We don't know if FCA will give the Design Sketch Battle winners the same distinction. In the meantime, Gilles and Trostle both said they'd post more stand-out designs on Instagram over the weekend. Spoiler alert: Someone Photoshopped a Ram 1500 Rebel grille onto a Tesla Cybertruck. You've been warned. Related Video: