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There's an impending shortage of new trucks in America's heartland

URBANDALE, Iowa — Jerry Bill is worried the novel coronavirus could hurt business at the Des Moines auto dealership he runs, but not because of a shortage of buyers for the big Ram pickups on his lot. "Our biggest issue will be if we don't get more inventory," said Bill, general sales manager of Stew Hansen Chrysler Dodge Jeep Ram, which sells around 2,700 new vehicles a year in Urbandale, a suburb of Iowa's capital Des Moines. After a drop in sales in April when consumers stayed home, Bill expects pickup truck sales to end May similar to where they were a year earlier. And if demand remains strong, Bill said he will run out of popular models in June. Fiat Chrysler began slowly restarting Ram truck assembly lines on Monday after a two-month shutdown. The U.S. economy contracted in the first quarter at its sharpest pace since the Great Recession of 2007-2009 because of lockdown measures aimed at slowing the spread of the coronavirus. Economists warn the second quarter will be much worse. Still, far from the lockdowns of states like New York, Michigan or Ohio, dealerships like Stew Hansen have provided FCA and Detroit rivals General Motors and Ford a rare bright spot: strong sales of pickup trucks in America's heartland. Overall U.S. sales of cars and light trucks crashed to the weakest pace in 50 years last month. But sales of big Detroit brand pickups, particularly in southern and western states less affected by the outbreak, significantly outperformed the market, industry executives and analysts said. Pickup trucks are one of the most profitable automotive segments in the world. They account for a huge portion of the Detroit automakers' profits and formed a huge lure for Peugeot, which expects to merge with FCA by early 2021. The pressure is now on to boost pickup truck production and send vehicles to dealers in parts of the country with dwindling supplies. That is particularly true for GM, which is running short of certain truck models after losing 40 days of production to a strike last fall. "If you don't have what someone wants, they can choose to go to another brand," said Cox Automotive analyst Michelle Krebs. 'Easiest swap ever' Detroit automakers in March rolled out large discounts — such as interest-free loans for seven years — to keep vehicles rolling off dealer lots.

GM tinkering with Silverado, Sierra model mix amidst strong early sales

Variety, as they say, is the spice of life. That's a lesson that is currently being taught to General Motors, because despite a strong showing from its 2014 Chevrolet Silverado and GMC Sierra, the General's pickup sales still can't best those of cross-town rival Ford.
With 59,163 trucks moved, GM fell just over 1,000 units short of toppling Ford, and one of the main reasons for that, according to GM's chief sales analyst, was due to a lack of variety in the engines and body styles available on dealer lots. "We are still over-weighted toward crew-cab V8 trucks. Our light-duty mix will moderate over time as our launch progresses," said Kurt McNeil.
Loading dealers with the popular combination of the 5.3-liter V8 and the four-door, Crew Cab body style was intentional during the truck's launch, but as supplies of leftover 2013 models, which are being sold at heavy incentives, are beginning to wane, both budget-conscious and high-dollar buyers are looking elsewhere instead of at the volume model pickups.

EcoCar2 is on the hunt for a better, cleaner Chevy Malibu [w/video]

The students spent three years transforming an ordinary Chevy Malibu into a revolutionary vehicle. Not far from the building where General Motors once invented the Chevy Volt, a dozen or so college students are standing on the blacktop alongside a test track, watching a professional driver push the limits of a plug-in hybrid car they've built that's far more radical. These students, from Colorado State University, have spent the past three years transforming an ordinary Chevy Malibu into a revolutionary vehicle. At first glance, it still looks like a regular sedan. But under the hood, they've installed a hybrid powertrain that contains both hydrogen and electric power sources. Even by the standards of the Department of Energy competition they're participating in, it's an outlier. That's exactly what they had in mind. "We didn't want to come here and tell them how to build a better Volt," said Tom Bradley, faculty adviser for the Colorado State team. "They already know how to do that. We can tell them how to think about these possibilities in a whole new way." After three years of work, it all comes down to this. The Colorado State team was one of 15 that came to GM's Milford Proving Grounds last week for the final stretch of the EcoCar2 competition, which challenges regular college students who have no automotive experience to do nothing less than reinvent the American car. The teams have come from across North America, and include schools like Ohio State and Virginia Tech that have a long history of participating in similar competitions, and schools like the University of Washington and Embry-Riddle Aeronautical University that are here for the first time. After three years of work, it all comes down to this. The teams have operated 24 hours a day for almost two weeks here at the Proving Grounds, running a gamut of tests that include a 310-point safety inspection, emissions and energy-consumption tests and road tests, in which professional GM drivers ensure they're road worthy. The winning team will be announced tonight in Washington D.C. Revolutionary cars, ordinary package While other green-car competitions encourage extreme designs, this one comes with a somewhat constraining twist: Yes, students must improve fuel economy and reduce emissions, but in the end, they still have to have a car that would appeal to mainstream customers. In practical terms, that means they must keep conveniences like air conditioning and trunk space.