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

It is funny how people will try to say the f150 is the best selling truck when it is not. Do you guys forget there are the other trucks that ford makes? All together is what makes them the best selling truck, not just one model. Anyways Chevy out does Ford in sales with all their trucks.

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.


Posted by: Scott | Nov 2, 2015 2:59:14 PM

F150 3.5 ecoboost with maxed up payload and towing is in 3/4 ton range. So yes, people will cross shop f150 ecoboost with Titan.

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.


Posted by: Scott | Nov 2, 2015 2:59:14 PM

F150 3.5 ecoboost with maxed up payload and towing is in 3/4 ton range. So yes, people will cross shop f150 ecoboost with Titan.

well with all that profit that GM made off of ignorant consumers with their crappy trucks maybe they should begin to pay back some of that 11 billion to the taxpayers after we bailed them out

This just in from Beebe the Village idiot, despite PUTC post that GM had $3.1 billion in 3rd Q profits Beebe the Village idiot posts:

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.

Beebe the Village Idiot has no idea that $3.1 Billion is more that $1.4 billion, he drives a ford if that tells you how smart he is.

@TJ you beat me to it!!!

Beebe's post reveals a lack of business acumen that you can only find on the farm. Perhaps that is why farming is even MORE subsidized than public education.

Being able to drive a tractor or milk a cow doesn't mean you can make sense of a financial report or a balance sheet.

Not knocking farmers here, but there's a reason that Wall Street is surrounded by parking garages and million dollar penthouses, and the average farm has PLENTY of parking available and the housing is cheap.

Trailer for sale or rent. Rooms to let fifty cents...

@ZERO common sense - If I can not get information from Nissan's web site then where are you getting your information from?
Post some links. you are starting to sound like Big Al.



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