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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.

Jeep and Ram could be spun off from FCA, says Marchionne

Jeep is surely the biggest single feather left in the cap of the Fiat Chrysler Automobiles portfolio. Under Sergio Marchionne's leadership, Jeep went from fewer than 500,000 annual sales in 2008 to 1.4 million in 2016, and is on track for 2 million by 2018. Add in the brand's legacy, status as one of the most recognizable nameplates in the world, and rabid fan base, and Jeep has extraordinary monetary value to its parent company. Investors and analysts have certainly noticed Jeep's inherent value. According to The Detroit Free Press, Morgan Stanley's Adam Jonas asked FCA chief Sergio Marchionne if he would ever consider spinning Jeep and Ram, FCA's dedicated truck brand, into a separate corporate entity, and he responded with a simple "Yes." Jonas estimated Jeep's worth in January of this year at $22 billion. Ram was valued at $11.2 billion. Marchionne has a history of spinning off brands while keeping them part of FCA's corporate umbrella. The most noteworthy example of this value maximization was with Ferrari, which now trades on the New York Stock Exchange and rakes in $3.4 billion in annual revenue and close to $435 million in net income, reports the Free Press. Marchionne still serves as chairman and CEO of Ferrari, and Fiat heir John Elkann owns 22 percent of the Italian marque's shares. Even if the offloading of Jeep and Ram into a separate entity would amount to little more than a profit-driven ownership change on paper, it would be huge news to the brands' loyal fanbases. In any case, such a move would likely take years to actually happen and probably wouldn't mean much at all to the products that Jeep and Ram produce. In other words, Jeep fans can keep the pitchforks in the shed ... for now. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Jeep Super Bowl commercial nets criticism from fish conservationists [Update]

Update. FCA got back to us with the following statement: "The Jeep brand and FCA cooperate with federal/state/local governments and organizations, including Tread Lightly and Access Fund, around the world to help ensure that its vehicles are being utilized in a legal and responsible manner, and follow those guidelines when demonstrating their off-road capabilities. Ecological assessments are made and considered when the Jeep brand conducts demonstrations of a vehicle's off-roading capabilities. The vehicle shown in this video is driving on a designated county road that experiences seasonal runoff and its performance capabilities are authentically portrayed consistent with the Jeep brand philosophy. Other examples of how Jeep demonstrates vehicle capabilities take place at the brand's Camp Jeep activities at auto shows and experiential events." The Super Bowl is always packed to the brim with various car commercials. FCA in particular had a big showing this year with ads from both Ram and Jeep. It's the latter that seems to have drawn the ire of some organizations, particularly one where a new Jeep Cherokee drove up a stream in a commercial called "The Road." Trout Unlimited, a freshwater conservation organization, has criticized FCA for encouraging driving that might endanger fish habitats. Trout Unlimited President and CEO Chris Wood sent a letter to FCA chief Sergio Marchionne, calling the commercial "wrongheaded" and that Jeep got some "bad marketing advice on this one." Wood says many of Trout Unlimited's members are Jeep owners and that he previously owned a Jeep CJ7 that he took all over Vermont. He says that he took it off-roading, though he never drove right up the middle of a stream. We're waiting on a comment from Jeep, but MSN reports that the automaker is defending the ads — though there aren't plans to run them again. Trout Unlimited says driving up and damaging streams can destroy the gravel where fish lay eggs. Either way, off-roaders should always be mindful of their surroundings so they don't destroy the land or sink their vehicles after, say, breaking through the ice on a frozen lake. Related Video: