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Coronavirus shakes up America's truck market: GM outselling Ford and Ram

FCA, Ford and General Motors joined the rest of the U.S. auto industry in taking heavy volume hits due to coronavirus-related shortages of both cars and customers. The saying goes that a rising tide lifts all boats; it stands to reason, then, that a falling one would have the opposite effect.  However, as we learned Thursday, the automotive market can behave in unpredictable ways. While the F-Series remained the best-selling nameplate in Q1, GM's full-size trucks are now outselling Ford's again for the first time in years, and with this upward thrust from the General, FCA's Ram was unceremoniously booted out of a hard-earned second place.  While late-March sales declines hit just about every major automaker in one way or another, the model-by-model results weren't nearly so uniform. And because the market tends to be a zero-sum game, for every winner, there generally has to be a loser.  In this case, that winner was GM, and its rise had to come at the expense of another automaker, in this case, Ford. F-Series sales dropped 13.1 percent in the first quarter of 2020, while sales of GM's full-sized Silverado and Sierra surged nearly 28% in the same period. FCA's Ram lineup managed a steady-as-she-goes 7% increase. All-in, GM finished the quarter with 197,743 full-size trucks sold to Ford's 186,562. Here's the full breakdown: Ford F-Series: 186,562  Chevrolet Silverado*: 144,734 Ram P/U: 128,805 GMC Sierra: 53,009 *includes 1,036 Medium Duty sales Things are a but murkier in the midsize segment, where the Chevy Colorado slipped 36% to just 21,430 units sold — just a few hundred better than the slow-selling Ford Ranger's Q1 numbers. The GMC Canyon experienced an almost identical slide, finishing the quarter with just 4,483 units sold. For perspective, Jeep sold more than 15,000 Gladiators and Toyota's midsize Tacoma slipped less than 8%, finishing the quarter with nearly 54,000 sales.  We suspect this discrepancy in full- and mid-size truck sales comes from shifting incentives. Ford, GM and FCA would like to keep selling bigger trucks because there's far more profit margin built into their list prices. Even with tens of thousands of dollars in manufacturer money on the hood, big trucks still make money.  Since these automakers report quarterly, we won't get another good look at these numbers until July, but if you thought that 2019 represented the new normal for U.S. auto sales, well, think again.

Union to launch Toyota organization drive in Canada

Toyota may be heading toward some labor issues in the Great White North, as employees at a pair of Canadian Toyota factories may be set for a certification vote. The Unifor union, which was the result of a merger last year between the Canadian Auto Workers and the Communications, Energy and Paperworkers union, will be holding the vote.
Over 40 percent of the employees at the Woodstock and Cambridge, Ontario factories have signed union cards, cresting the minimum percentage required to instigate a legal certification vote, according to Reuters. The Woodstock factory is responsible for RAV4 production, while Cambridge builds the Lexus RX350 and RX450h, as well as the Toyota Corolla. The two factories employ nearly 7,000 people.
It's unclear when the union will hold a certification vote at the two factories, but what is rather clear are the worker complaints. Employees are concerned about workers being hired on temporary contracts which lack the benefits of full employment, John Aman, head of organizing for Unifor, told Reuters.

Toyota promises a next-generation Land Cruiser is on its way

On sale since the 2008 model year and facelifted twice in the interim, the Toyota Land Cruiser has lately begun rolling out the special editions. Last year we got the 2019 Lexus LX Inspiration, this year we got the 2020 Land Cruiser Heritage Edition. This likely means a changing of the model guard is close, the 300-Series Land Cruiser on the horizon to replace the current 200-Series. When Motor Authority asked Toyota SVP Bill Fay about the U.S. getting the next generation, Fay replied, "We are fully committed to the Land Cruiser for the foreseeable future." The reason for the question could have been Land Cruiser sales figures for the past 14 years, when the model never cleared 5,000 units. The swankier Lexus LX sibling sells in greater numbers, but even lumping the two trucks, they've crested 10,000 sales just twice since 2005. On top of that, two of the largest regional markets for the Land Cruiser are Australia and the Middle East, which have different regulatory regimes, and the 2019 Highlander has a three-row option. Why carry on with the Land Cruiser here? Fay told MA the body-on-frame bruiser is a "heritage vehicle," a staple in the U.S. lineup since 1958. But the Cruiser that comes next is expected to LS-ify its powertrain formula, which means getting rid of V8s for V6s. The 5.7-liter V8 with 381 horsepower, 401 pound-feet of torque, and an EPA rating of 15 miles per gallon combined should go away. The 3.5-liter twin-turbo V6 in the Lexus LS 500 gets the nod to take its place, as the Land Cruiser make concessions to fuel economy and emissions standards. A poster on a forum said it's possible that a Dynamic Force version of that engine might appear. As is, that engine makes 416 hp and 442 lb-ft in the luxury sedan and is mated to a 10-speed automatic, the same transmission said to replace the current eight-speed in the Land Cruiser. Automotive mediums predict a hybrid Cruiser, too, potentially with the same 3.5-liter naturally aspirated V6 and 10-speed auto in the LS hybrid, putting out 354 combined horsepower in the sedan. Because there are so many Land Cruiser versions around the world, it's impossible to say whether V8 options will die globally. Land Cruiser fans, either through desperation or good intel, say that isn't the case.