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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.

FCA recalls 1.1 million vehicles worldwide due to confusing shifter

Fiat Chrysler is recalling 1.1 million vehicles worldwide to address the problematic shifter used on cars with eight-speed automatic transmissions. The issue is that the console-mounted shifter acts like a rocker switch and always returns to the middle position after moved. This has been deemed confusing to drivers – confusing enough to cause some to exit their vehicles without first selecting Park and leading to the car rolling away. FCA says 41 injuries are related to the shifter problem, and no evidence of equipment failure has been found. The company will enhance warning chimes and alter the shift strategy, meaning alert messages will be displayed in case the driver door is opened while the engine is running. With the door open, the transmission will prevent the car from moving even if Park is not selected. The affected vehicles are certain model-year 2012–2014 Dodge Charger and Chrysler 300 sedans, as well as model-year 2014–2015 Jeep Grand Cherokee SUVs, an estimated 811,586 US vehicles in total. The recall also affects 52,144 vehicles in Canada, 16,805 in Mexico, and 248,667 vehicles elsewhere. The shifter is used with ZF-designed and ZF-built eight-speed automatic; Audi uses a similar shifter setup in some of its vehicles, including the current-generation, which predated Chrysler's use of it. Chrysler uses a different, a rotating-dial-type shifter on eight-speed-equipped Rams. The company moved away from the problem shifter design in 2015 for the Charger and 300, and the Grand Cherokee's shift lever was modified for 2016. Owners of affected vehicles will be notified of the recall when service is available. Fiat Chrysler urges customers to follow the instructions in the vehicle's owner's manual in the meantime. Related Video: News Source: FCAImage Credit: AOL Recalls Chrysler Dodge Jeep RAM Ownership Safety SUV Sedan

Ram wants its midsize truck situation 'fixed soon'

The rumors of a midsize Ram pickup are like a metronome — sometimes in motion, sometimes dead. This week the rumor is alive, so reports Automotive News. Fiat Chrysler CEO Mike Manley admitted during an earnings call that the lack of a mid-sizer is "a clear hole in our portfolio," and that the Ram product development team is "focused on it." Puzzling that out means finding "a cost-effective platform in a region where we can build it with low cost and it still being applicable in the market." But he wants a solution found soon. During the product roadmap presentation FCA made in June last year, late CEO Sergio Marchionne said the middling pickup would be built in Mexico. That tidbit came after years of Marchionne saying the brand would get in the segment, only to have the idea shot down by Ram bosses. At the 2012 Detroit Auto Show, a year after the midsize Dodge Dakota went off the market, Marchionne said the brand would reinstate a new-generation Dakota, with a better-than-50% chance it would be unibody. In 2013, then-Ram president Reid Bigland said the chances were tiny because the numbers didn't add up. The two men got on the same page, in favor of, in 2014. In March 2016, Marchionne said, "I like that space a lot," and "It's a good space to be in." Exactly one month later, then-Ram CEO Bog Hegbloom said the idea was dead because he couldn't make a business case for it. Come early 2018, even Marchionne had joined the naysayers. He told Automobile, "We did not think it was necessary to re-enter that market after our last experience." The snag was, and remains, that a smaller truck has "a cost structure very similar to our Ram 1500. We have not found an economic way to get this done." Four months later, there's a midsize pickup on the product roadmap. Then, at this year's New York Auto Show, Ram Trucks boss Jim Morrison told us Ram had no plans yet for a smaller pickup, although the division continues to look at its options. Last September an Automotive News report forecast the truck to be built in Toledo alongside the Jeep Wrangler and Gladiator pickup. When Car and Driver asked for clarification about Toledo or Mexico, FCA pointed to Marchionne's comments referring to Mexico. It appears that's the angle Manley and his team are still trying to make work. The Saltillo, Mexico, assembly plant now builds Ram's heavy-duty trucks, but observers expect HD production to move to the U.S. to make room for the smaller pickup.