Truckmakers See Strong Third-Quarter Profits

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All the big pickup truck manufacturers in North America are riding high on strong midsize and full-size pickup and SUV sales; in some cases they are enjoying double-digit profit margins. All three of the full-size pickup producers — Ford, GM and Ram — are doing well and could be gearing up for more changes and modified strategies as a result.

Ford Motor Co.

The third quarter of 2015 will likely be one of the best in Ford's history, assuming it doesn't continue to grow at the same (or higher) pace. Net income this quarter for the maker of the F-Series pickup is more than double what it was last year at this time (Automotive News subscription required), with Ford executives jumping for joy at finally seeing some of their investments paying off. But if you think Ford is going to sit back and celebrate, that doesn't look to be the case.

According to Automotive News, Ford is planning one of its biggest sales events since the recession, hoping to take advantage of current momentum. Expect aggressive incentives and discounts on the F-150 and outgoing 2016 Super Duty F-250 and F-350. After a slow start to the first half of 2015, Ford wants as much F-Series market share as it get.

General Motors

GM also had a strong third quarter, with $3.1 billion in pretax profits — the best ever since its 2009 bankruptcy. And like many of the Chevrolet and GMC pickup competitors, most, if not all, of those profits are a direct result of the success of GM's North American pickup models. In fact, in one of the most underreported stories in the auto industry, the huge investment (and risk) GM made as the first truckmaker to offer three differently sized pickups now seems to be paying off in big profits as well as increased market share.

Fiat Chrysler Automobile

FCA is reporting North American adjusted profits are up more than 6 percent so far this year. Unfortunately, since FCA is a global company and is struggling in markets around the world, it is recording a third-quarter loss of $331 million due in large part to recalls.

Additionally, during a recent conference call, FCA CEO Sergio Marchionne discussed the possibility of entering the full-size SUV segment to better compete with Ford and GM, who essentially have that highly profitable segment to themselves. Although no specifics about timing were given, such an introduction would likely coincide with the next redesign of the Ram 1500, which is still a few years off.

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Comments

in case your wondering why they didn't post Fords acual profits ($1.9B) its becuase its less GM's... and since this is a Ford site and all...

http://www.fool.com/investing/general/2015/11/01/ford-earnings-new-products-drive-record-3rd-quarte.aspx

Yeah where is GM's picture. They put Ford in the ringer!

"Ford is planning one of its biggest sales events since the recession"

Yeah Ford is doing down the crapper!

“This is not your normal, ‘Let’s take $500 off a car,’” said Jim Seavitt, owner of Village Ford in Dearborn, Mich. “Last time we did something like this was … when things were pretty bad.”
http://www.autonews.com/article/20151028/RETAIL01/151029808/ford-to-launch-one-of-its-biggest-sales-since-recession

Later Ford, I'll be laughing my balls off when you ask for bail out money and all the fordtards eat it LMAO!!!!!!!

Nov 2015 - Jan 2016 free for all sale on the barely brand new one year old Ford trucks LMMFAO!!!!! Look like AL is a fail.

GM hardly has the debt ford has remember they filed bankruptcy and then bailed out.
MUST BE NICE

Oh one last thing before I go...

"The idea of offering more choice resonates pretty deeply with truck buyers -- more sizes and trim packages and options and accessories," says Mark Williams, editor of enthusiast website PickupTrucks.com. "GM seems to have the right truck with the right message."


• The Canyon's average transaction price of about $34,100 is tops in the midsize-pickup segment, data from Edmunds.com show. The Colorado's is $31,800, higher than the segment-leading Toyota Tacoma's $30,015, though that should rise after the Tacoma's recent redesign.

• The percentage of buyers from other brands -- the conquest rate -- is 56 percent for Canyon and nearly 50 percent for the Colorado, GM says. The Colorado's top conquests are Tacoma and Ford F-150 buyers.

• Around 40 percent of Colorados are rolling off dealership lots accessorized with bike racks and other gear, boosting dealer and GM profits, the company says.

Perhaps the most important measure of success doesn't show up in the Colorado's numbers at all: Sales of the big brother Silverado are red hot, too, erasing concerns that the Colorado would simply siphon sales away from GM's biggest money maker.

http://www.autonews.com/article/20151102/OEM/311029965/gms-told-ya-so-small-pickups

Later Ford folk remember to buy a Chevy Colorado, time to trade in them pointless beer cans LMAO!

Ford's net income for third quarter was 1.9 billion. Gm's net income was 1.4 billion and GM is a much larger company. I know some of you don't have the slightest clue about how a business works but net income is what matters at the end of the day. Amazing that ford is reporting RECORD profits and people are still calling their recently redesigned and most profitable vehicle a fail? The new f150 isn't just a success, it will probably be the single most profitable vehicle ever made when considering the total net profit. Amazing how clueless some of you are.

I "had" planned on buying a Canyon, but found out they put the same engine and tranny as a 2009 Chevy Traverse. 7-8 year old technology, and I do not want no stinking diesel. Then GM wonders why people buy other brands over them. They need to keep up...

Ford is making big profit with less models than GM. Fiat, meh. Whatever.

@Beebe,

+1

I "had" planned on buying a Canyon, but found out they put the same engine and tranny as a 2009 Chevy Traverse. 7-8 year old technology, and I do not want no stinking diesel. Then GM wonders why people buy other brands over them. They need to keep up...


Posted by: Dave | Nov 2, 2015 10:09:53 AM

The engine is likely the same or similar to platform but the traverse is a front drive transmission. Actually the same as in most Ford platforms since it was a joint venture transmission. The canyon is a rear drive transmission. I assume it is similar to the current 6 speed rear drive transmissions.

I was planning to buy a ford truck, but because they made most profit of any trucks, I am not going to pay some Ford Engineer an extra vacation at Bahamas or hhooker for ceo.

I've been ready to buy a new truck for awhile, and planned to get another GMC, or maybe a Ram. The Ram is off my list now due to the poor payloads. I didn't even consider a Ford, especially with all the aluminum hype. But I see them everywhere now. 3 guys in my department just got new F150's in the past couple months, and they love them. I have to admit, after test driving one, I am leaning towards a new F150 now. I can see why they are becoming such a success. I didn't think they would catch on this fast.

Fiat, dragging Chrysler down the crapper with it. Thanks sergio

@Dave
The 2012 traverse uses a llt 3.6 v6 the col/can use the lfx 3.6 v6 a updated version of the llt the Trans could not be any different as the col/can are a rwd trans and the traverse is a fwd trans. The 6l50 trans in the col/can is very sim to the full size 6l80 trans and the 6l45 that bmw uses. The 2008 traverse uses an even older motor the ly7...so much for old tech

Good job gm and ford! FCA meh

Good job FCA. Keep your pricing low. Ford, GM meeh,charge your sheep extra.

If one looks at global ratings GM has finally passed Ford. As others have pointed out, GM is considerably larger than Ford and walked away from 100 billion in debt. This is the first year since 2008 that GM has rated higher than Ford in profitability despite selling much more vehicles.
If one looks just at companies with pickup in their lineups this is how they stack:
#8 - VW (diesel scandal will kill this ranking)
#9 - Toyota
#21 - GM
#27 - Ford
#44 - Honda
#60 - Nissan

FCA isn't even in the Top 500.

To put that in perspective since there are always those that compare trucks to fast food - MacDonalds rates #434.

Here is one for Big Oxi from Oz - Alcoa ranks #496.

Lou_BC You can't say stuff like that, Chuck Taylor will cry now and show old incorrect links for 3 months balling the whole time.

@Lou
Ranks of what ? Profitability ?
I have my own business, my paper profitability is not great, but I am doing better than any middle class in NA.
I would never buy any product from most profitable company, because that profit comes from customers, if you don't know.


Fiat Chrysler Automobiles needs to make quality and reliability a priority.

From what I'm reading Ford wants to increase it's share of the vehicle market in the US.......at almost any cost.

Ford's footprint in the US market has dropped from around 17% to 14% of vehcles sold. This is a whopping 15%.

15% is a big hit for a vehicle manufacturer. This is when other manufacturers have posted increases as large or larger than Ford's drop.

The Ford induced "price war" will start on the 3rd of November and some analysts predict it will continue on into 2016. This will be good for the consumer.

So, how far can Ford go is the big question? The way I see it GM will outperform Ford in this "sale". GM will be able to match and better Ford's offers.

The biggest loser will be FCA as they have much less fat to burn in offerings.

I wonder where the October monthly figures are?

The sale will also have an impact on the new Nissan Titan.

I'm wondering if Ford also sees this new Titan as a bit of a challenge when it considered it's sale.

I would like to see what offers Ford will have on it's lighter SuperDuties, as GM and FCA with their HDs to counter the new XD Titan.

Ford is worried about aluminium.

Manufactures will release there sales figures tomorrow.

I have just had a thought.

I will be quite interested in seeing how Ford's biggest profit maker, the SuperDutys can lower their prices when the Titan comes out.

I suppose Ford's theory is one more SuperDuty sold is one less Titan.

Also the Titan xd isn't delivering the mpg's to justify the huge additional cost of the cummins/aisin combo. It's not delivering good enough cost savings in mpg's over other 3/4 ton offerings. Titan only delivers 17 mpg's
http://www.autoblog.com/2015/10/30/2016-nissan-titan-xd-mpg/

common sense - people were talking about corporate rankings. I posted from the Fortune 500 list and they are talking about profits.
A company has to provide a decent product because if they do not profits will only be short term. GM is a prime example of that. They were Top 3 globally in sales but had record losses and went bankrupt.
FCA product durability is all over the map with most of their ratings being poor to fair. In Europe they are struggling even worse than Ford or GM.

I'll buy based on durability data, options/features I want and price out the door. I don't care where a company sits on the Fortune 500 BUT I'd rather buy from a high ranked company since that means they will be around over the lifespan of my ownership.

There is a reason why Marchionne is trying to find a company for FCA to merge with. They do not have the profitability to R&D new products and ensure long term survival.

@BAFO - tripping over your Ford hatred boner once again. Where do you get 15% drop from??

You say they went from 17% to 14%.............. ummmm 17 minus 14 equals 3.

Are you really an engineer?

More like an Australian trvll. Is that some sort of marsupial?

Maybe you need to come out of the pouch more often!

Scott,
Thanks for the Titan link, it's quite interesting.

I do believe the FE is significantly better than the "other" HDs if the author stated that the Titan sits smack bang in the middle between the HDs and the VM diesel Ram.

The Ram has a much smaller diesel and weighs significantly less.

Don't forget the 555ftlb of torque. I do believe many who buy one of those light HDs will seriously look at the Titan. The percentage of people towing with a light HD will be higher than midsizers and 1/2 ton buyers as well.

So, the ISV Titan will have an impact. I'd bet my balls that Nissan will use HDs as a comparison when marketing. It would be silly to use a 1/2 ton as a comparison.

Lou,
I wouldn't just buy because of consumer reports.

I would also research the vehicle myself, to see if it can handle my expectations. Like I mentioned regarding the Tundra and Rebel.

I would not buy a Rebel to off road considering how it looks underneath.

The Tundra will need some work to make it better off road.

So, what better pickups are there for off roading?

So far it seems the best would be a 70 odd series Landcruiser with a trayback. Live axles all round, designed to off road and has a V8 diesel. All approach, departure and ramp over is superior, come with locking difs front and rear, etc.

It would shame these two pickups off road and even a Raptor.

If you don't have heaps of cash, then buy a base model and modify it yourself. Many of the reputable aftermarket 4x4 companies do offer and protection with your warranty.

Ford will continue to reap the rewards in October sales of there new aluminum f150. They should move there plans up as much as possible to produce the new aluminum superduty to take advantage of its class leading material use age before the other players in the truck market come with aluminum bodies.
http://247wallst.com/autos/2015/10/27/ford-sales-expected-to-surge-in-october/
Kelley Blue Book expects the overall industry to post a gain of 11.9% to 1,430,000 cars and light trucks. Ford Motor Co. (NYSE: F) sales are forecast to rise 16.6% to 219,000, which will lead the industry. Ford’s flagship F-150 will finally be a major contributor to sales growth. It is the largest selling vehicle in the United States and represents about a fifth of Ford’s total sales.

Big Al from Oz - that is exactly what hardcore off-roaders do. Hardcore off-roading is an expensive sport.

In reality anyone who actually works in off-road environments do not buy Jeeps or compact trucks or even 1/2 ton trucks.

HD pickups are used for work and even there commercial light - MDT's are used for consistent heavy use.
- The local forest fire "Rapid Attack" crews all run HD 1 tons with specialized utility bodies and winches with HD bumpers. Tires are just an upgrade from stock but not bigger.
- Power company trucks are HD's and 4x4 and 6x6 MDT's to HDT's. They also have "snow cats" and low ground pressure tractors.
- Municipal Fire/Rescue are all HD pickup based or MDT or HDT.

BTW - you obviously missed the part where I said," I'll buy based on durability data, options/features I want and price out the door."

To quote you, "comprehension is the key."

@Lou
Feel free to buy what ever you want.
I will never buy a Ford.

Scott - I've said all along that the Titan is going to target Ram since Fred Diaz was their former boss.

Your post raises some interesting points.

"EcoDiesel Crew Cab scored 18.3 city, 27.2 highway, and 21.6 combined"

Titan diesel XD

"The result was 15.8 city, 20.8 highway, 17.7 combined miles per gallon."

The Cummins 5.0 Titan which can haul 2,000lb and tow north of 12k has combined mpg ratings 18% less than the anemic Ram 1500 balcony equipped sedan.

The Cummins Titan is going to hurt Ram. I know a lot of guys who like Cummins and have had bad experiences with Ram. CR and JD Power back that up.

Poor FCA.

Magna International had tried to buy them before they got handed to Fiat.
I wonder if they would look at them again?

common sense - I will consider a Ram if they happen to build one that is consistently reliable and offers the capacity I want.

Until then......... GM, Toyota, and Ford are my choices....... the Titan XD has to be proven before I add it to my shopping list.

Ford is loosing market share. That's the fact . Titan Cummins is going to eat from F150 ecoboost even more.
That's why new F150 fire sale. Who ever switched from Ford, will never come back. Ford is panicking.

Lou
I also think Nissan is targeting the ram 1500 diesel owners and 2500 cummins purchasers. I'm curious as the option cost of the cummins/aisin combo in the Nissan. It around $11k option in a ram hd. My guess is it will be at least an $8k option in the Nissan. That also makes me wonder if there will be much room to price them right to pull customers from other brands. Once this thing hits the market pricing will show you can buy a true 3/4 ton diesel for cheaper and in the 1/2 ton segment you will be able to get a well equipped 6.2 gm or a 3.5 ecoboost. Cummins owners are faithful and may get a few of them as well as the tried and true Nissan fan base. I know if I was a cummins faithful and shopping I would prolly pay more for a 6.7 cummins inline over a 5.0 v8 cummins.

@Scott
Nissan is targeting everybody. Specially F150 3.5 ecoboost.

People don't really cross shop gas and diesel in half ton segment. This is targeted at the ram 1500 diesel and more of a target is 3/4 ton buyers.

Scott - This is most definitely going to target 3/4 ton buyers. A HD 1/2 ton overlaps with 3/4 trucks.

@"lack of" common sense - how do you figure a 6-8k option is going to target Ford's volume selling engine?

Price sensitive buyers have the choice of a "max cargo" F150 with 5.0 or EB 3.5 or a "max cargo/max tow" EB3.5 or Max tow EB3.5.
If one goes to GM max tow is bundled with max cargo and can be had with either 5.3 or 6.2.

Cummins buyers tired of Ram durability will now have the option of a Cummins in a Nissan.

Most civilian use diesel HD's I see are towing 9-10k trailers. I see some 1/2 ton trucks towing those trailers but not many.

I ordered a optioned up F150 XLT. 2016's will have the android play head unit that works like a smartphone and the underperforming ac issue from previous years, (2010-2014) has been fixed. For me, this truck will be the perfect real estate office vehicle and personal use vehicle with the 110v plugs and all the back seat space, leg room, flat load floor, ease of ingress and egress for passengers / clients, very classy looking and still can get a 6.5 ft bed in a super crew ! that checks all the must have boxes for me. The 3.5L twin turbo should get better gas mileage than my 2010 Tundra which was a fantastic truck but i was not impressed with the 2014 refresh by toyota, i think the 2014 is less functional than my 2010. Hope the F150 is as problem free as my 2010 Tundra which still has the original battery in it !!!

Forgot to mention, drove the chevy and was not impressed with fit or finish and or the functionality i am looking for in a truck.
The Nissan on the exterior i would be embarrassed to be seen in. by far the worst design on the exterior in my opinion. Dodge has too many quality issues for me to consider, i had two of their trucks in from 2003-2009 and had a huge issue with the half ton dodge that they screwed me on warranty wise, after i raised hell with the dealer, they refunded my almost $300 in previous visits, cost me a $1100 the issue and dumped that truck asap to a dealer on a diesel in 2007. that truck was fine but decided i didnt need a diesel, but the power seat went out after one year and i never touched the settings ! IMHO, for how i use a truck, the F150 will function and fit me best by far of any of the other trucks. I plan to get the loading ramps that come from Factory, that many sales guys dont know anything about, be great for loading dirbikes and or the quad.
The only thing i would add to the F150 is a 110v plug in the bed for camping. Guess i will run a cord out the back window.

Diesels are effed imo. The EPA has removed all the lubricity out of diesel and causing a lot of premature failure of fuel pumps. plus all the emissions and def fluid on top of that, removes any savings and actually costs more than gas. Though gas with all the ethanol and methanol additives reduces its efficiency, that is why it is so hard for many vehicles to get the mileage posted on window sticker. the EPA needs to be dissolved, all they do is make things more complex and ruins almost every good long lasting product, COSTS us Consumers a TON OF $$$$. how much longer are we going to put up with all this non-sense they shove down out throats ???

@Lou
Did you check F150 pricing with same payload and towing like Titan has lately?
I don't think so.


Cmno, we'll put up with it until the libtards are driven out of dc.

common sense - the Titan Cummins does not show up yet on Nissan Canada's web site.

common sense ( or lack thereof) - I just looked at the Nissan USA site too.

No 2016 Titan XD listed either.

Where are you getting your magical price and option numbers from?

>Citation required<

I have my own business, my paper profitability is not great, but I am doing better than any middle class in NA.
I would never buy any product from most profitable company, because that profit comes from customers, if you don't know.

Posted by: common sense | Nov 2, 2015 12:10:53 PM

A rather ironic statement coming from someone making bank.

@roadram - unless the Republicans can mount a challenge to "the comb-over in chief" you will see Hillary at the helm.

common sense - the Titan Cummins does not show up yet on Nissan Canada's web site.


Posted by: Lou_BC | Nov 2, 2015 5:12:36 PM


Exactly. You know nothing.



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