Strong Sales Predicted for February

Ram Deliveries II

Even as winter continues to slam parts of the country without pause, some of the biggest auto sales prognosticators are still pretty optimistic about sales predictions for February specifically and 2014 in general.

According to Automotive News, many experts are predicting continued sales growth in most segments, ranging anywhere from 3 to 5 percent; that translates to of a year-end sales total of anywhere between 15.7 million to 16.5 million auto sales.

GM is benefiting from much higher transactions prices on its 2014 Chevrolet Silverado 1500 and GMC Sierra 1500 year over year, but increased incentive use for all the truckmakers seems to be creeping back up as concerns over market share continue. Ford made quite an impression at the 2014 North American International Auto Show in Detroit with the debut of the 2015 F-150, and Ram's EcoDiesel is setting all sorts of ordering records as half-ton trucks are shipped to dealerships this week.

Ram has even produced a slick, short video about how much attention its new light-duty diesel is getting from dealers and truck customers. We'll have the exact sales numbers for February to see how they compare with last year on Monday.

 

Comments

There will be more incentives as the inventory builds up. The economy is not that strong. Also people have been replacing their trucks at a rapid pace and there is only so much demand. There were a lot of buyers that held back from buying new trucks up until recently and many have since replaced their older trucks.

@PUTC

Great headline. Thanks for the reference to "market share." Some recent back/forth among the commentors debated the perception that incentives affect profitability.

My point on this continues to be that a market where the Big 3 are the heavy weights fighting for share and are willing to spread the cost of incentives across whole divisions of their global companies in order to rule the roost.

Yup just went to test drive a GMC 2500 Duramax, and I am truly impressed.

2015 that is...

March is gonna suck for GM. Less sales, people are dieing in vehicles that the ignitions shuts off while going down the road.

Point is, they need to fix these recalled HHRs and Cobalts and stuff, so people don't die. GM...

March is gonna suck for Ram. They Got every thing but are still smelling farts way back in 3URD place LOL!

Why all this hate on every brand, you buy what you want and what you can afford.

Ram is a good truck but sales are not are way back, Toyota is a average truck with an average powertrain for the average person. Ford is Ford but GM's trucks is awesome, they really got me.

@TRX-4 what's your point, everyone is selling trucks. Does Ram really give a dam about you, obviously not they are not paying your bills. So go ahead and buy what you want and can afford just don't bash on an American Company.

I've been hearing allot that Ram is going to catch up to Silverado, I might be guilty of being a Ram Fan Boy buy the fact is that Ram is not even close to Silverado let alone combined numbers by the twins.

I really think that GM can jump Ford, they have done so in the past with combined sales from the twins.

I will purchased a 2015 GMC 2500HD Sierra Z71 or a 2500HD Denali.

Curious to see the March sale numbers concerning the EcoDiesel.

The GM twins did outsell Ford 8 out of 10 years from 2000-2010.

I've read about 100 month financiang and "subprime" lending practices driving sales. Manufactureres are also using rebates.
Those factors are "driving" sales.

Even in Canada I've read about the shrinking middle class. Those who want new personal use pickups cannot afford them without discounts and increased debt loads.

It's pretty sad how GM/Chevy fanboys (Ex-Hemi noob) have to resort to acting like false ex-Dodge owners and pretend they test drove a new Chevy/GM truck and post their experiences (their dreams) on a comment section, hoping that people would believe them. I guess it makes sense now that it's pretty much confirmed that their new Silverado launch and pricing incentives are a joke...

http://www.autoblog.com/2014/02/27/barclays-says-gm-truck-launch-least-successful-in-15-years/

There is not such a thing as shrinking middle class in Canada, like Australians doesn't have a triple buying power.

http://business.financialpost.com/2014/02/25/canada-middle-class-statscan-net-worth/

Because Lou is broke, doesn't mean everybody in here is.

@Lou_BC
I've read the subprime car loans are becoming riskier as the surplus of cash is trying to find a way into investments.

So, maybe the US should look at stopping it's quantitative easing policy and just bite the bullet.

Much of the US printed money has found it's way into European banks and has been invested into risky developing nations.

As you know the European banks don't have much collateral supporting their debts. This US isn't as bad, but it's not good either.

I wonder what the outcome of all this will be?

All of this printed money is supporting asset values. But the current values are false if they require borrowed or printed money to maintain them.

A big bubble surrounds us.

Credence Clearwater Revival wrote a song---'I see a bad moon arising'.

Hell, gm doesn't even combine sales of they're trucks because of 2 different name plates. This has been discussed before on here and the only ones wanting to combine them are the fanboys. That would have been like combining the sales of Camaro's and firebirds back in the day. You just can't do it.

@LouBC; @Big Al

Ending QE during an election year is a non starter, so instead, central bankers will jawbone it instead

Wall Streets current hi-flying stocks are actually the scariest equities out there. They have little cash and lousy earnings. Some smart guy recently compared it to musical chairs. It doesn't matter if you buy lousy stocks as long as you aren't holding them when the music stops.

Re: Autos Detroit may still have another good six to 12 mos. Trucks should be a good place to be for the Big 3.

Just not long term.

@zviera - thank you for showing the value of corroborating evidence.
It does depend on the part of Canada you live in. Central Canada is struggling.
There are some things that makes these statistics look better than they are. Being an Albertan, you should be aware of the upward pressures created by the oil patch. I have a friend who went to work in the oil patch as a HD mechanic. He is pulling in 300,000/year. That skews the results. He is "middle-class" but is pulling down wages that most do not consider "middle-class".
Some definitions state it is between two-thirds and twice the median income.
By those definitions I am not middle class but upper class. So is my friend.
others define middle class not by the money they make but based on the money they spend.

I'd suggest staying away from phychosocial debates. That is definatelt not your area of expertise.......... but then again, picking a truck that has a cargo capacity for your needs isn't your area of expertise either.

@zevereass
Triple the buying power? You are a real flake.

A year ago or so you stated that you were not going to post on PUTC anymore.

Why?

Because people were disrespectful of your commentary.

Judging by your latest efforts in these blogs you make yourself out to be a real fool.

You don't apply logic to your comments and they are purely trolling.

As I've stated it's odd that once DiM has more or less left the site you appear.

This occurred when you dissappeared last year and DiM took the helm for the most assine blogs on this site.

So, do we expect your worthless commentary to be around for the next 12 months or so?

@papa jim - we are facing a federal election in Canada. The political parties are already working on propoganda. I suspect that politicians are stating the Canadian middle class is declining to justify giving FCA 700 million to keep a Chrysler minivan plant in Ontario Canada. Ontario has been Canada's manufacturing heartland and has been hit hard by offshored jobs. Mexico is going to supplant Japan and Canada as the leading automotive importer of vehicles into the USA.
The resource sector in Canada has become our economic engine. Even the East coast provinces which traditionally have been our poorest are doing better due to oil.
We may be facing our own financial crisis if we keep borrowing money. Our central bank has tried to cool things down a little and some mortgage rules have been changed but most are still going deeper into debt.

Don't forget ford and ram give big rebate,,,??

@papa jim and Lou
Here are a couple of interesting stories as well. That highlight that all are not being offshoring.

There's also a transition occurring within developed nations.


http://www.abc.net.au/radionational/programs/futuretense/5285816

http://blogs.reuters.com/great-debate/2014/02/27/why-we-should-worry-about-the-future-of-men/

The median net worth of Canadian family units was $243,800 in 2012, up 44.5% from 2005.

http://business.financialpost.com/2014/02/25/canada-middle-class-statscan-net-worth/

@zviera

Do you understand finance and/or economics? Median net worth is a useless stat because it includes wealth that has been handed down over many generations. There are families in Canada whose wealth is the direct result of their connection to hundreds of years of British nobility.

Look instead at median income. LouBC discusses that a few posts back and it is much more relevant to this conversation about the market for pickups.

@Bafo
It's not my fault, you don't know what curb weight is.

Cheap loans and lots of discounting will sell lots of cars and trucks but this will not last. Eventually the default rate will increase and there will be a glut of late model cars and trucks on the market at discounted prices. Short term cheap loans and lots of money on the hood will move lots of metal. This is what can happen especially when you get into financing that is over 60 months. This is where the car companies can get into trouble they keep cranking out lots of vehicles and using high discounts and low interest long term loans attracting not just those who can afford a good deal but attracting many who are tempted into buying more vehicle than they can afford. The danger in overproduction is not so much less profit, the manufacturers can discount trucks 10k and they are still making money, but if many of these get repossessed they will flood the market and their value will plummet. Why buy new if you can get a deal on a late model used. Then the manufacturers will have to further discount their vehicles. Hopefully this will not happen but it has happened before.

@papa jim
You are quite correct in your assumption regarding the median income in Canada.

Even though it's not as bad a the US which has a contracting median income, the Canadians' median income has stagnated for some time now.

Here's a link supporting your argument. The slide show is interesting. If the Canadian's are near the top (3) and the US is in 6th position. The world isn't in great shape.

http://www.huffingtonpost.ca/2013/06/29/household-income-canada_n_3521688.html

@zervia
Median wealth is the value of assets. If you read my above comment you will see that assets are impacted by quantitative easing or the printing of money. The US's money printing is affecting the globe. The Japanese are doing the same now.

Even now in Japan I read an interesting article where the Japanese are going to buy AUDs. Because of the Yen's value and the AUD is considered a stable currency.

The CAD and AUD used to be considered what is termed a commodity currency. That is the currency value is reflected by commodity prices. Of late because our economies are more stable than the US, Euro, Pound Sterling and Yen the CAD and AUD are being bought to hedge against those poorer performing economies with a high degree of quantitative easing.

This has in effect created a hybrid currency of a reserve currency and commodity currency for our nations.

As I pointed out the median wealth value is highly variable. If and when the quantitative easing stops the median wealth in Australia and Canada might de-value.

In other words the value is only paper money.

Here is a link that shows what occurs with quantitative easing or the printing of money in a country.

http://www.smh.com.au/business/markets/currencies/a-will-be-big-in-japan-20140227-33js8.html

@Big Al--Good article. There are many men 55 and older that have lost their jobs and cannot find work. I feel fortunate to still have a job. This is one reason the economy has been slow. If you don't have a job then it doesn't matter how inexpensive something is you cannot afford it. If you buy something on credit that you cannot afford then if you lose your job you will not be able to make the payments.

@ Thank you papa
I did already. 6 posts back. Australian family doesn't have triple of median income like Lou was saying.

This is the first time I see a RAM picture and video in the headline not related just to this brand.
Even PUTC noticed RAM is doing everything right.
It will be strong numbers for RAM for sure.

Upper class with $300 000+ income doesn't even read PUTC.
What are you doing in here.
Did you just smoke that best stuff you were keeping for Bafo and All1 again?

@ zviera - deflection is a simplistic and obvious ploy used by those without a leg to stand on.

First you say I am too broke to buy a new truck and now you say I am too wealthy to be on this site.

I don't have a problem admitting I used a term incorrectly or was in error.

Give it a try some time..................

That would mean admitting to the fact that you purchased a pickup without fully understanding the cargo capacity of the vehicle you own.

Even using an equalizer hitch still isn't an excuse. They are equivalent to approximately a 35% reduction in tongue weight depending on the source one reads.

Your truck has 1,000 lb payload and a 5,000 lb trailer with 10% tongue weight equals 500 lb but a 35% reduction by the equalizer yields a 325 lb. tongue weight. Your 1000cc Versys weights 525 lb. That means 850 lb of your cargo capacity gets eaten up.

Do you leave your family at home when you travel?

My truck has no 1000lbs payload and trailer is not 5000lbs.
I just pulled my specs to be precise.
My aluminum trailer GVW is 2994lbs and truck payload is 1071lbs.


@zviera - then why do you need an equalizer hitch?

Oh, I forgot, you drive a car.

@Lou
That's what hitch dealer asked me, but I like to drive safely. I installed sway control friction brake as well.
I know, it's an overkill for most of you, but what a difference in the crosswind or curvy Northern California Redwood Coast traveling. I don't even know I pull anything behind me. That's what I like. That's what I do. Is anything wrong with that ?

Ram 1500 Eco Diesel review.

https://www.youtube.com/watch?v=RNnMlHfeZso

Awesome review . They will sell all they can make.
The primary constraint appears to be VM’s production limits; the Italian diesel engine company is expanding is capability, but it will take time to produce enough new engines for increasing American use. The V6 engines must be assembled with great precision, and VM appears unwilling to ramp up too quickly to maintain quality standards.

http://www.allpar.com/news/index.php/2014/02/ram-diesels-being-shipped

Call me what you will, I couldn't care.

But if you really think GM is "so far ahead" then I really don't think you have paid attention to GM truck sales trends, and the fact that their sales are dropping. While Ram is gaining sales.

Oh, and Ford and GM sell more to fleets, when comparing to all their sales, while Ram sells more of their trucks for personal use.

Papa Jim can say whatever, I see All Star Chevys advertised 7-8 K off.

Like I say, what's new and up and coming for this summer from GM trucks? They might actually release the 6.2 1500s, that will be less then 1% sales? A redesigned HD model with a 1500 face and slight interior change? Same old engines.

GMs full size trucks are tanking. Good thing they will have a midsize, atleast that should be good for some sales. Lets see if they designed it with uncomfortable seats, and an offset steering wheel?

So johnny doe and his friends will be crying in his PBR beer in maybe a few days, definetly in a month and a few days.

Of course, now the GM folks, when they see Ram pass up Chivy, will stand behind the "well add both trucks up" and after Ram beats that down the road, they will say "well, let's add in SUV sales"

Buy what you want. Whatever suits you. I had a new 2006 Chevy, and it was a fail, except for highway gas mileage.

I don't see that much change in their trucks. They went from a clunky 4 speed to a clunky dunky 6 speed. The 5.3 still needs revved up.

I know Ford will be doing well, after driving all of the big three, I just bought a F250 6.7l diesel CC 4x4 FX4!!! Took delivery last Monday.

The new GM's are nice(speaking of the 2500 diesels), but the ford was just an all around nicer truck, I couldn't get past GM's crappy tow mirrors, and the wierd view angle of the Nav

Big discounts by both Ford and GM through March. Ford is trying to keep up the market share grab even with the oldest truck of the group. They are offering up to $8,000 in incentives. GM, with the newest truck of the group, is now offering $9,000 OR MORE in incentives. That's a lot of savings!

If GM was smart, they would do what Ram did and make Chevy Cars and then GMC the truck division. That way they could claim all GM Truck sales under one nameplate.

After watching this video HEMI posted in here, I am sure many customers will see much higher MPG numbers than rated for.
That's the "small" diesel beauty in the half ton.
I think GM will jump at small diesel pretty soon. They don't have any other option to maintain market share.
Ford will try to fight with " busy bee" 2.7, but without any success.
RAM will need to build another assembly plant to keep up with demand.

Dodge still shooting for Chevy and still falling up short, so many excuses from the Dodge camp. It is a balancing act. Chevy was selling tons of trucks, they wanted to raise their transaction prices which in turn deflat sales some. In an article I read the other day it said GM's new trucks average transaction prices per truck was up almost $5k compared to last year. That is a ton. Tons of profit, less market share. If they reduce that a little and gain back market share the tables will turn on Dodge.

Also all the Dodge guys boasting about their improved sales compared to last year, how about compared to last month? Dodge sales fell from December to January 33405 to 25071, that is a 25% decline. Not so rosey now huh? Chevy fell 32%, more yes but it wasn't nearly anything like the Dodge guys keep trying to spin in comparing to last year when they were +22% and Chevy was showing down -18%, those numbers don't mean squat when GM was in the middle of a new truck roll out and trying to sell old models.

Numbers will always be skewed, currently for GM and the HD's trucks are in the middle of a roll out and sell off. Ford will later this year with their new truck, GM with the addition of the midsize which will adjust sales some for them and all. Dodge did the same thing with their rollout of their models, sales had to take a hit while adjustments are made.

Look at the whole pictures boys, not just the numbers you want everyone to see because they only benefit you.

@TRX-4 Tom Yeah I'll go buy you some PBR to drink while you cry cause Ram will still be in 3rd place, and making up exuses why Ram has poor payload/towing/braking/squatting rear coils/poor crash test ratings/a high reving v6 gasser with an 8speed that only gets 1MPG better then a 4.3 with a 6speed/poor towing MPG v8 and last a v6 8speed diesel that's slower then a snail on the down hill LOL!

@zviera - 2,994 lb. Is that a dry/empty weight? I suspect so. That would meen an 18 ft. trailer +/- a foot or two.

Even if one went with a 10% tongue weight that would be 299.4 lb. 35% of that with equalizer yields 195 lb.
195 plus 525 mens 720 lb on the truck. 1,071 capacity leaves 351 lb. for passengers.

Funny, a real long time ago you got in a debate with Big Al over little diesels and said that they were expensive and useless especially in colder climates.
Now that FCA has ben first to market wirth one you are saying it is the best thing ever.

I love your posts(sic), you undermine any semblance of credibility with every reply.

What's that old saying, " Tis better to stay quiet and have people think you are daft than speak and remove all doubt."

The GMC with the 4.3 looks like a decent package. I'd be more inclined to go that route than an Ecodiesel. The up front costs are considerably less and you can get one with a decent payload capacity.
Traditionally GMC has made a more reliable vehicle than Ram and GMC did correct all of the lame interior fit and finish problems of the GMT900.
The only criticism of the GMC trucks is that they were way too conservative with their evolutionary steps. That is fully understandable considering the design of the current truck started in 2007-2008 when they collapsed.

@Lou
Yes, it is 19' long trailer. I go places I couldn't get with longer one and I don't need more. It is luxury trailer with 500W solar panels, aluminum wheels, modern interior ... I modified axles to get chassis higher of the ground, otherwise I couldn't use forestry roads . I installed extra new gravity heater, so no noise , no electricity needed. Tested in -27C for a week. My custom made LED lights I installed everywhere.
I love it .
This VM diesel is best on the NA market in half ton truck now. I would buy it , if I am somewhere else. But it supposed to be -32C tomorrow and I use my truck for many short trips during a week, so 6.4 HEMI will better suite my needs in the future. Many short trips and engine starts kills diesels in cold weather. Idle running deposits sod in the turbo. This new diesel engines are so efficient, they will heat up when I reach my destination.

BAFO wouldn't get the places with his diesel, I go with my trailer.
He wouldn't pull it up hill slowly with his manual transmission because of very bumpy, rocky road. His clutch would burn after one trip.
I don't have problem to get back downhill on slippery icy or packed snow road , because trailer is light and truck heavy.
This would be little problem for new Aluminum ford. But it's not going to be much lighter from RAM, like you all thing anyway, because it's 300lbs heavier now.
I have the best combo for my needs. For you works something different.
I respect that, so don't try to tell me what's best for me.
You should be quiet about your $300 000+ income, because we all know it's a lie, if you buy 2010 Ford 150 with 5.4L anemic , thirsty, no soul engine in it.




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