Are Sluggish Van Sales a Harbinger for Pickups?

IMG_8308

Ford will shut down its Kansas City Assembly Plant for two weeks to decrease the flow of full-size Transit vans to dealerships. The plant, which on separate lines produces both the Transit and F-150 pickup truck, will shut down the van line in order to better restrict the backup of vehicles. Neither of the two F-150 assembly plants (Dearborn and Kansas City) will be shut down for any length of time, although other Ford assembly plants will be affected.

According to Automotive News, the number of Transits in the pipeline has been steadily creeping upward, so Ford is trying to more appropriately match production with actual demand. Whether or not this full-size van slump is a harbinger for the full-size pickup market remains to be seen. Sales for the top-selling van have been sluggish for three consecutive months.

The Transit competes with the similarly shaped Ram ProMaster and Mercedes-Benz Sprinter, as well as the more classically boxy Chevrolet Express, GMC Savana and Nissan NV vans.

Manufacturer image

 

2015 Transit 1 II

 

Comments

This condition illustrates why GM was smart to reduce its "van footprint" at the Wentzville MO plant and devote that shop-floor capacity to the midsize pickups, Colorado and Canyon.

Ford's friends in the media may attempt to blame the oversupply of its vans on a "down economy, but with the stock market at record highs, interest rates near all time lows and unemployment in the Goldilocks zone, it's very hard to make a reasonable case for their viewpoint.

Maybe it's trash and nobody wants to buy it, ever consider that? Some people like vans but not in the numbers you globalists hope and dream about where everyone is forced to use a rinky-dink eurovan that is torture to drive and embarrassing to be seen in.

@papa, so sorry GM who supposedly makes a van, cant compete with Ford, yes you are right, when you lose you go away.

I hope pickup truck sales do slow that way I an get a good deal on a new one.

... so sorry GM who supposedly makes a van, cant compete with Ford, yes you are right, when you lose you go away. Posted by: Nitro | Sep 22, 2017

@Nitro

Ever hear of night school? Jeez, buddy.

Consider an English Composition class. After reading your comment three times I still could not figure out what you're trying to say. I was being generous, but just could not follow the thread from GM and vans, to "when you lose you go away."

Night school Try it!

I've seen mini-motor homes ten times sexier that these poops.
Good gosh, what are they thinking when they design these embarrassments. BD is right...globalists at work.
Here's an idea: why doesn't some maker come out with a real panel truck again. Tough, tough looking, hard working and a real-world vehicle. And you don't have to hide your eyes when it drives by.

Actually GM's 'boring' vans are selling well:

http://gmauthority.com/blog/2017/09/chevrolet-express-sales-numbers-figures-results-august-2017/

Vans are mainly business and nothing else, pickups are 75% daily drivers, that tow little and carry less.

I do see pickup segment slightly different.

I would look at HD numbers, not 1/2 ton numbers falling first.

Sales numbers usually don't follow smart patterns.

There are more dumb people buying pickups and vans than smart people buying pickups and vans

So the best selling trucks and vans are the dumbest ones to buy.


I know, it hurts to try to understand. Go drink your beer.

@papa, coming from the guy who uses WIKIPEDIA as a source. Please, try ANY school.

You guys are Dotards

Actually just the other day I saw one of these vans used by our metropolitan transit system bus rail. It was brand new they use for transportation for handicapped person or anybody elderly ect.
It came to pick up one of my neighbors that is blind so they are replacing some of the older regular box type vans that they have used.

I was correct in my post as I found the story on what I was saying about new vans. They are new Ford Vans and are replacements for some of the aging older type vans. They said more than 200 new vans. I live in Washington, DC so WMATA is bus rail subway and metro access vans for serving DC, MD & VA suburbs. So Ford will have a buyer for new vans WMATA because there are a lot of older ones that have seen there days. The story is on their site.

HAHAHAHA! Ford once again shutting down their turd box on wheels plant.

coming from the guy who uses WIKIPEDIA as a source. Please, try ANY school.
Posted by: Nitro | Sep 22, 2017 11:52:51 AM

Wikipedia is a fine source as long as you verify the sources they cite at the bottom of articles. Keep trying, you'll get that GED some day.

Fine comment from someone that didn't finish school. Did you even attempt to get a GED?

HAHAHAHA! Ford once again shutting down their turd box on wheels plant.

Posted by: johnny doe | Sep 22, 2017 4:37:26 PM

HAHAHAHA!!..the turd box you are referring to is far more modern, more popular & outsells the combined sales of shaky GOVT motors ancient square twins Expreso/Savan...LOL!!

papajim,

I think you are correct. GM was smart to simplify their line up.

papajim,

I think you are correct. GM was smart to simplify their line up.

Maybe it's trash and nobody wants to buy it, ever consider that? Some people like vans but not in the numbers you globalists hope and dream about where everyone is forced to use a rinky-dink eurovan that is torture to drive and embarrassing to be seen in.


Posted by: BD | Sep 22, 2017 10:11:16 AM

You said it, I just bought a new cargo van. Needed an American style van. Bought the NV Nissan and i like it so far.

@Big Al--It use to be that full size vans were more popular with families during the 70's and 80's during the custom van craze. Much different today in that families have more choices with mini vans, crew cab pickups, crossovers, and suvs. You are correct in that full size vans are more commercial. Not an expert on vans but I would think that initial cost, cost and frequency of maintenance, and fuel efficiency would be the considerations that most businesses would consider when buying vans for commercial use.

initial cost, cost and frequency of maintenance, and fuel efficiency would be the considerations...

@Jeff S

Most companies today concern themselves with two kinds of cost:

1. capital cost or "capex"
2. operating cost aka "opex"

most companies are moving to a leasing model where every cost is treated like an operating expense because those costs are retired at the end of each accounting period (i.e. annually).

Capital costs are usually longer term (like real estate--longer than one accounting period) and make budgeting more complex, although some companies persist in the outdated idea that they can better respect their capital sources (shareholders) if they account for capital on a item by item basis.

Leasing of equipment and even employee expense has become the norm because it simplifies accounting and offers tax advantages.

Papa Jim loves insulting people's education. But isn't he the one who has an eighth grade education. I know college isn't for everyone, but here's a tip. Stop the night school/college insults if you are only 8th grade educated. That is all for now. I have to run to the mall.

Papa Jim loves insulting people's education. Posted by: Jeff | Sep 24, 2017

@Jeff

I do NOT love insulting illiterates like you! It's dirty and disgusting work, but somebody has to do it.

As for leasing vehicles and other business assets I have been involved with that as well. I have done financial statements, cost accounting, and taxes all while working in the oil and gas and the banking industry. I wasn't born yesterday.

@papa jim--Not my comment but if you want to call me illiterate and tell me I need to go to night school go ahead. I have several college degrees and I do not need to prove anything to anyone especially to someone who claims they have an eighth grade education. You really should not insult someone's education it makes you look stupid which I am not going to lower myself to call you.

@Jeff S

Please note. The comment was addressed to "Jeff" not you.

People mess with my name on this site all the time and I ignore it. Recommend that approach for you, in case you care to try it.

I have done financial statements, cost accounting, and taxes all while working in the oil and gas and the banking industry. I wasn't born yesterday. Posted by: Jeff S | Sep 24, 2017

@Jeff S

You're a little touchy today. You mentioned a number of considerations that typically do not get reviewed in detail. That's why companies increasingly are budgeting for Opex as much as possible. If you have an Opex surplus at the end of the accounting period those funds, along with other surplus dollars, get swept into a common pool that can be used to offset losses in other areas, or rolled into the next season. What I just described differs from what you said.

You said "...Not an expert on vans but I would think that initial cost, cost and frequency of maintenance, and fuel efficiency would be the considerations that most businesses would consider when buying vans for commercial use."

I believe that purchasing departments do not conduct that sort of granular expensing today because it is too labor intensive in larger firms.

They instead use the accounting I just described and they let the chips fall where they may.

Not an expert on vans but I would think that initial cost, cost and frequency of maintenance, and fuel efficiency would be the considerations that most businesses would consider when buying vans for commercial use."

@Jeff S

I was wrong on one point (above). Your remarks would be appropriate to a company like UPS or the postal service that has giant fleets of vehicles. Little things add up in that setting, but trust me when I say that most firms are not getting that granular on expensing because it just doesn't make enough difference and it demands vast numbers of accounting personnel who can be better used elsewhere (like taxes).

@papa jim-I don't care who you are replying to. I am only going to tell you this one more time. Rules before posting comments:

Try to be civil to your fellow blog readers.
Stay on topic. We want to hear your opinions and thoughts, but please only comment about the specified topic in the blog post.

Stop putting people down right now or I'm going to report you.

I think you are correct. GM was smart to simplify their line up.

Stop putting people down right now or I'm going to report you.

@Big Al

You were up early yesterday. How's springtime in Oz coming along?



Post a Comment

Please remember a few rules before posting comments:

  • Try to be civil to your fellow blog readers.
  • Stay on topic. We want to hear your opinions and thoughts, but please only comment about the specified topic in the blog post.
  • Your email will not be shown.

If you have a TypeKey or TypePad account, please Sign In

Home | Buy or Sell a Truck | News | Special Reports

Powered by Cars.com. By using this site, you agree to our terms of service | © 2017 Cars.com | Privacy Statement | Contact Us