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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.

GMC considers adding more vehicles to broaden product line

GMC is considering expanding its product portfolio in the next 10 years to allow it to reach more potential buyers and grow sales, a top executive said Monday. The small and midsize sport-utility-vehicle segments are two possibilities, said Duncan Aldred, GMC sales and marketing vice president. He also said GMC won't make a car, preferring to reinforce its reputation as a maker of trucks and SUVs. "There's plenty of opportunities even if we define ourselves as a we do as a truck and crossover brand," he said. He wouldn't comment on the possibility of adding a Jeep Wrangler-fighter, though rumors have swirled for months that GMC is considering a product to compete with the iconic off-roader. "I can't confirm that ... everything's on the table," he said. He also said that it's possible GMC could get a unique set of underpinnings – all of its vehicles share platforms that are also used by Chevrolet – but it's not needed to differentiate his brand. "I'm very happy sharing underpinnings and everything else," he said. "All of the good-performing automakers do that." Speaking to journalists at a roundtable at General Motors headquarters in Detroit, Aldred said GMC received an investment from GM that is double what the brand has historically spent to fund its growth plans. Advertising spending alone will increase 50 percent this year compared with 2014. The brand rolled out a new ad campaign on Monday, called "Precision," that will underscore attention-to-detail and the premium features of GMC vehicles. Two of the commercials have a sporting theme, and the third focuses on modern menswear. GMC called it a "contemporary interpretation" of the brand's traditional positioning, and it will also continue to use its long-running "Professional Grade" tagline. The premium positioning of the ads come as buyers are increasingly outfitting their trucks as near-luxury vehicles. The percentage of buyers opting for the top-end Denali trim has increased from 17 percent in the middle of 2014 to 21 percent now. The goal is to get Denali to make up 25 percent of GMC sales by the end of 2017, Aldred said. Spurred by the higher Denali take-rate, the brand's transaction prices leapt by $3,000 last year. "It's [Denali] really kind of this jewel in the crown," Aldred said. GMC sales increased 11.3 percent in 2014 to 501,853 units, making it GM's-second-best-selling brand behind Chevrolet.

2021 GMC Yukon starts at $51,955, just $100 more than outgoing model

The 2021 GMC Yukon and Yukon XL have prices, and they're bargains considering the upgrades the new model delivers. The base Yukon SLE starts at $51,995 after the $1,295 destination charge, a $100 premium over the current model. The extended wheelbase Yukon XL in base SLE trim starts at $54,695, the same price as the outgoing model. The price for all-wheel drive stands pat for trims that make it an option, at $3,000. Prices for the two-wheel drive Yukon and Yukon XL trim steps are below, with price differences compared to the 2020 models. Keep mind that the new AT4 trim comes standard with AWD, so the AT4 is in a sense closer in price to the SLT and further from the Denali than it appears here: Yukon SLE: $51,995 (+ $100) Yukon SLT: $59,095 (- $810) Yukon AT4: $66,095  Yukon Denali: $69,695 (+ $800) Yukon XL SLE: $54,695 (No change) Yukon XL SLT: $61,795 (No change) Yukon XL AT4: $68,795 Yukon XL Denali: $72,395 (+ $600) The drop in price on the Yukon SLT is in comparison to the 2020 Yukon SLT Standard Edition trim, not the lower-spec SLT trim. The new Yukon comes in at $1,700 more than the 2021 Chevrolet Tahoe, the same price difference in effect between the Yukon XL and Suburban. The standard Yukon is powered by a 5.3-liter V8 with 355 horsepower and 383 pound-feet of torque, the same specs as found in both the Tahoe and Suburban. The Yukon Denali trims, as with the High Country trims on the Chevy twins, outdo the 5.3-liter with a 6.2-liter V8 making 420 hp and 460 lb-ft. Both engines shift through a 10-speed automatic. Stuffing a Yukon XL Denali with options can take the MSRP beyond $80,000, thanks to available features like the panoramic sunroof, rear seat entertainment, air suspension, and Magnetic Ride Control Suspension.   We're still awaiting pricing for the coming 3.0-liter Duramax inline-six with 460 pound-feet of torque, which we expect closer to the on-sale date for the new full-sized SUVs.  Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Bronco, Yukon, Hummer and a CES recap | Autoblog Podcast #610