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Chevy, GMC and Ram dealers are worried they'll run out of new pickups

One of the unexpected side effects of the ongoing coronavirus pandemic is a shortage of pickups at Chevrolet, GMC and Ram dealers. Supplies are running out, and the factories that build these trucks remain closed. Stores across the nation began increasing incentives in March, when the first stay-at-home orders were issued, in a bid to continue luring buyers into showrooms. They also launched online sales channels, or expanded their existing digital business. Sales nonetheless plummeted in April 2020, but in-demand vehicles, like the Ram 1500 and the Chevrolet Silverado, are still selling relatively well thanks in part to the aforementioned incentives. Pickups outsold sedans for the first time in April 2020, according to The Detroit News, by 17,000 units. The problem is that General Motors, Fiat Chrysler Automobiles (FCA), and Ford temporarily closed their factories in March. "The pipeline is very dry," said Mike Maroone, the CEO of a large dealership group named Maroone USA, in an interview with Automotive News. He told the publication his Chevrolet stores are sitting on a 30-day supply of the Silverado, which is one of America's best-selling vehicles. "That is a problem for us," he concluded. Coronavirus-related lockdowns and factory closures compound problems already faced by dealerships who represent General Motors-owned brands. They entered 2020 with a thinner inventory than a year earlier due to the 40-day United Auto Workers (UAW) strike that paralyzed the company late in 2019, and the 0%, 84-month offers announced in March have sapped supply. Ram wasn't affected by a strike, but it has relied heavily on generous incentives to move trucks off lots. Ford, on the other hand, limited incentives to 2019 models. Inventory levels differ greatly from region to region. The national average for the Silverado stood at an 82-day supply in March 2020, down from 120 in March 2019. Ram stores had a 114-day supply of the 1500 (compared to 134 a year earlier), while Ford bucked that trend with a 111-day supply versus 84 in 2019. Don't panic if you're in the market for a truck; we're not facing a complete drought. Automotive News added that America's light-duty pickup inventory could fall to 400,000 units by the end of May, and drop further to 260,000 units in June. For context, there were about 700,000 light-duty trucks in stock in May and June of 2019. That's unquestionably a sharp drop, but there will still be over a quarter of a million trucks to choose from.

Dodge, Jeep and Ram could soon be owned by Chinese automakers

For the past several years, Fiat Chrysler CEO Sergio Marchionne has made it widely known that the automaker he helms is up for grabs. First, he sent an email to GM CEO Mary Barra, who immediately refused to even discuss a merger. Later, Marchionne set his sights on Volkswagen. That too was swiftly rebuffed. It seemed like no global automaker was remotely interested in a partnership. Now, Automotive News reports that several Chinese automakers have come calling, only FCA isn't ready to answer. At least not yet. The news broke this morning that a major Chinese automaker had made an offer to purchase FCA for slightly above market value. FCA refused, saying the offer wasn't quite generous enough. It's unclear which automaker made the offer, but Automotive News says there's more than one interested party. FCA representatives have recently traveled to China to meet with Great Wall Motors, while Chinese representatives were seen at FCA corporate headquarters in Auburn Hills, Mich. The Chinese government has a lot of money invested in local automakers. It's putting pressure on these automakers to expand globally, including to the United States. As it stands, it's a matter of when a Chinese automaker will start selling cars here, not if. Purchasing an established automaker with a wide range of products and a huge dealer network would do wonders in giving the Chinese a foothold here. Sure, Geely owns Volvo, but a luxury automaker doesn't have nearly as much reach as a more mainstream company like FCA. This seems like the best case scenario for both a Chinese automaker looking to move into the U.S. and for FCA, at least from a business standpoint. The latter doesn't seem to have any other interested parties. It will be interesting to see how FCA would sell a deal like this to the public. We're not sure everyone will be happy with Dodge, Jeep and Ram falling under Chinese ownership. FCA didn't turn down the Chinese because they didn't like the idea. It turned down the offer because there wasn't enough money on the table. Related Video: News Source: Automotive News Earnings/Financials Alfa Romeo Chrysler Dodge Fiat Jeep RAM

Ram 1500 EcoDiesel is coming soon, but a midsize Ram, not right now

NEW YORK — At this year's New York Auto Show, we had the opportunity to talk with the head of Ram Trucks, Jim Morrison, and he had a few interesting tidbits about what's coming and what isn't for the brand. The first big news is that the 3.0-liter turbocharged V6 diesel is finally coming to the all-new Ram 1500 later this year. Up until now, the engine was only available in the previous-generation Ram 1500 and current Ram 1500 Classic. The new Ram 1500 EcoDiesel won't have the same engine, though. It will be a redesigned 3.0-liter turbodiesel that will also appear in the Jeep Gladiator in 2020. That means it should also make 260 horsepower and 442 pound-feet of torque, unless the Ram gets unique tuning that changes the output. Morrison wouldn't elaborate on any other details, though, including whether it would utilize the eTorque mild-hybrid assist of its gas powered cousins. The other news concerns things we probably won't see from Ram anytime soon — and one of them is a midsize pickup truck. Morrison said there are no plans for one yet, though the company is always considering options. In the meantime, the current strategy is to offer the Ram 1500 Classic as an option to potential midsize buyers. The thinking, of course, is that the Ram 1500 Classic is cheaper than the redesigned Ram 1500, and it's a bigger truck than midsizers. We can't help but wonder if the Gladiator might also make a midsize Ram a tougher sell at the moment. Finally, Morrison still had nothing to say about a regular cab offering for the redesigned Ram 1500. The only full-size Ram 1500 offering with a regular cab is the Classic model, leaving four-door models only on the normal 1500. We know that regular cabs don't sell well, so it's understandable that there isn't an offering yet, but it seems the company will have to offer one eventually when the Classic runs its course. Odds are that a future Ram 1500 regular cab will look something like the Ram 2500 and 3500 regular cab models, but with a more subdued grille.