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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).

Trump takes potshots at Ford in Flint

Doubling down on his general dislike of everything south of the Rio Grande, Republican presidential hopeful Donald Trump took aim at local favorite Ford during his first campaign visit to Michigan yesterday. "Ford is building a $2.5 billion plant in Mexico," Trump told a standing-room-only crowd in Birch Run, MI, yesterday evening. "I'll actually give them a good idea. Why don't we just let the illegals drive the cars and trucks right into our country?" This is not the first time real estate mogul turned reality TV star has whined about Ford's Mexican factory plans. Previously, he promised that if he were elected, he'd levy a 35-percent tax against Mexican-built Fords. Then, as he has here, Trump failed to address other automakers selling Mexican-built vehicles in the US, including Detroit-based General Motors as well as foreign brands like Volkswagen, Nissan, and Toyota. "I would say, the deal is not going to be approved, I won't allow it. I want that plant in the United States, preferably here," Trump said, with Bloomberg reporting his comments were meant with chants of "USA." Ford announced the $2.5-billion Mexican investment in April, saying it'd build two factories to produce transmissions and engines. In response to Trump's criticism of the deal, the Dearborn-based automaker was quick to point out that it hasn't exactly been stingy about building its business here in the US. "We are committed to leveraging our global manufacturing footprint and will continue to invest where it makes the best sense for our business," Ford spokesman Karl Henkel told Bloomberg. "We are proud that we have invested $6.2 billion in our US plants since 2011 and hired nearly 25,000 US employees." Related Video:

China's auto sales continue to drop

The days of unending growth of carmakers in China look to be over, and some analysts are even forecasting a net drop in volume this year, The Detroit News reports. After falling numbers in June and July, the China Association of Automobile Manufacturers tallied total sales, including trucks and buses, in August to 1.7 million, down 3 percent from 2014. There were some tiny specs of good news in China, but there's no turnaround in sight. Total vehicle sales from January to August are actually still up but only 2.6 percent. Like the rest of the world, SUVs are booming with numbers up 45.6 percent from the previous year. Honda managed a very impressive 50.7 percent gain on the strength of the CR-V and Vezel (the HR-V here), according to The Detroit News. Also, the country's domestic automakers, which generally offer less expensive products, posted a 2.5 percent growth in sales. The news continues to look bad for Detroit's automakers, though. Volume from General Motors dropped 4.8 percent in August, and Ford fell 3 percent in August. Both of them have invested significant amounts there in the past years. The vehicle industry in China grew last year, but there was burgeoning evidence of weakness. At the end of 2014, dealers there pushed back against huge inventories pushed by automakers. Even before the big drops began in June, GM saw the writing on the wall and started cutting prices. BMW responded to the slump by cutting back production to deal with the changing demand. News Source: The Detroit NewsImage Credit: Mark Schiefelbein / AP Photo BMW Ford GM Honda Car Buying