Pickup Prices and Profits Push Industry Production
Average transaction prices for full-size pickups are climbing at a significant rate, surpassing the average of the automotive industry as a whole.
According to Automotive News (subscription required), pickup truck sales were up 10 percent for April, with each truckmaker searching for ways to squeeze more trucks out of production lines, especially since they are investing in more well-equipped models and luxury trim packages for the light-duty and heavy-duty segments.
Average pickup truck transaction prices have been climbing steadily averaging 4.5 percent per year during the last five years, with the average sold pickup price rising more than 20 percent from 2011 to 2015.
But what about incentive spending by the big pickup manufacturers?
Not surprisingly, according to Cars.com data, incentive spending is climbing as well, with average money-on-the hood discounts for the major full-size truckmakers (Chevrolet, Ford, GMC and Ram) averaging a little more than $4,500 per truck. Of course, that's nowhere near incentives that reached $10,000 during the height of the recession. Truckmakers will have to be careful not to let those seductive incentives artificially inflate the popularity of their products and cut into profits.
So far this year, Ford seems to be doing the best job keeping spending down when compared to its Detroit competitors. Using Cars.com data, here's the average full-size pickup (light- and heavy-duty) truck incentive spending per manufacturer for the first four months of 2016.
Ram Truck: $5,612
Chevrolet Silverado: $5,086
GMC Sierra: $4,215
Ford F-Series: $3,180
Nissan Titan: $1,238
Toyota Tundra: $1,005
Cars.com photos by Evan Sears, Angela Conners
Comments
RAM takes care of the customers the best .
"So far this year, Ford seems to be doing the best job keeping spending down when compared to its Detroit competitors."
@PUTC
Ford is paying 3x the incentives that Toyota offers but in the upside-down universe of PUTC editors and contributors, this is considered a feat!
It did say Detroit competitors. Maybe read guy. Toyota is always lower on incentives.
Military grade sells itself, no need to slash profits
This doesn't really tell us anything. In order to really know whats going on you need to know the percentage of incentives spending vs cost of production.
I'm curious about profit margins. I want to know if margins are higher on pickups - now. Versus what the profit margins on SUV's were back in the early 2000s.
Fords EXTREMELY popular Explorer was returning 54% back in 2001. So what is the profit margin on the 2016 F150?
Ty is right its all about the margin. Selling (ill be polite here) "stuff" was never GM nor Cerebis's problem right up to when they went bankrupt, and GM went socialist and Cerebris went Fiat sponsored by taxpayer money.
It doesn't matter how much of what you sell if its not profitable. And you don't make up unit loss in bulk.
Only a total idiot would look at this and think that big incentives are out of generosity of the manufacturer. Big incentives are largely detrimental to the manufacturer usually a painful measure of emergency for some reason or another and typically unsustainable. Usually to compensate for "issues". Old design, unattractive model, bad crash standards, image issues, lacking key features, struggling to maintain or grab short term marketshare, economic desperation, supply and demand out of sync, are a few pretty typical examples...
4.5% increase per year over 5 years is significant. I know I am priced out of a new full size truck but that's cool with so many used options.
Toy with its reputation for reliability is famous for not having incentives. And yet they typically make more money than the big 3 minus 1 combined...
This web site is nuts.!!! Ford is in the middle of the pack yet they get praised. How about praising the best. ?? This is crap.
This is nuts...
Ford is well below the industry average AND they did preface their comment with "amongst the big 3". Titan sales of the older model are almost non existent and the new model is only starting to sell so very small numbers of sales for them and hence the almost non existent incentives.
Toyota is not big on incentives and really is the king of avoiding them. The Tundra also is not a big seller in this market.
The comment about Ford in this game and context is accurate.
Lots of room to discount on price for a King Ranch. Not much room to discount price on a plain Jane fleet truck. We all know Ford is a fleet truck company. These fleet truck retail prices are low compared to say a King Ranch. If the bulk of your sales are fleet then you will discount less. FORD knows how to smudge #'s like they do with tow and cargo ratings. Remove the bumper and suddenly 50 lbs greater cargo capacity. LMAO. Ford has no credibility with me.
This is true. Chevy incentives are 60% more than Ford. Ram has 77% more than Ford.
Looks like they are priced to high in the first place, if they knock 5 grand off the sticker price. Our dealers in my area have been advertising on TV 10-13 grand off 2015's they still have on the lots, that is Ford/GM and Ram..
@Jerame
Just for the record, Ford is Mexico, Ram is Italy and GM is also a global brand.
Toyota is Texas, and Nissan is Tennessee and Texas.
There is no "Detroit" anymore.
Lies, damned lies, and statistics.
The others here who mentioned profit margins are correct, there should be no point in mentioning rising prices without explaining why and comparing companies to themselves during the years mentioned. Did the cost of materials increase? How about the cost of labor? Other overhead or direct/indirect costs? Did increased regulations or higher taxes or fees happen between 2011 and now? What effect did inflation have on the prices? What mandatory safety or emissions regulations went into effect that required trucks (and all vehicles for that matter) to adopt new and costlier equipment?
@Clint
You know enough about business to be dangerous.
Apart from obvious concerns about profit/loss--which you enunciated--global companies such as the Big 3 also are concerned with attracting friendly investors, attracting and retaining the best personnel, keeping a strong network of car dealerships and distributors.
And while doing all of the above, you need to keep your strongest competitors off balance as much as you can. This includes pricing strategies that play off of a particular auto-maker's weaknesses.
Ford has been a top performer in this regard but their product development is weak across the board. This is why their acquisition of Volvo was so important.
RAM is also very poor on product development, dating back to the sale (by Daimler).
GM has been more aggressive on product dev. but their product lineup had struggled so badly from 1995 to 2005 that it was high time they got stronger there. Can you say Pontiac Aztek?
Why is all of this important? Because business strategy, market share and product development are so key to their futures. Simply looking at the costs versus the "net" is for losers (and their accountants).
My local GMC dealer is advertising $9,000 off on top of the line models. No doubt that he is contributing some in addition to the rebates listed above.
To some extent you can produce your way to profit. With all of the fixed cost in selling a truck(design, testing, building factories, distribution systems, advertising, etc.) the actual build cost is probably less than half of the selling price. That is why they keep pushing volume.
What is more important than rebates is transaction price after discounts. I wish that number was published. It is routine to overprice a product then crow about having a big sale. The Japanese don't do that as much as the Americans, hence the lower rebates for them. You have to admit though that it must work on the American consumer since the Japanese sales numbers are pretty dismal.
Ford has historically been the most fiscally responsible truck manufacturer--IMO.
RAM IS THE BEST VALUE!
@gmsrgreat, you mean like GM still does with fudging numbers by doing the same thing? In reality they are both just like Ram as far as payload and towing go, but Ram is the only one thats honest
A story on pickuptruck.com isn't complete unless you fluff fords name.
I agree with what some said incentives are only part of the story on a companies profitability selling a vehicle. Ford has claimed higher profitability on new F150 despite more expensive materials.
I almost forgot to mention the alliteration. It really should be titled: Future Factory Financial Forthcomings From Ford Fellatio Fanclub.
Papa Jim...
And yet Ford is the only one to have not been a "loser".
At the end of the day its all profit or loss. You can embellish in fantasy all you like about the details down the road. Your lack of a grasp of the fundamentals of business is the kind of deluded thinking that ultimately leads to bankruptcy and failure while fooling onself along the way.
Without sound fundamentals everything else is pointless.
FORD knows how to smudge #'s like they do with tow and cargo ratings. Remove the bumper and suddenly 50 lbs greater cargo capacity. LMAO. Ford has no credibility with me.
Posted by: GMSRGREAT | May 16, 2016 9:53:23 AM
And what you do is write completely inaccurate statements. Ford is J2807 certified for its weight capacity aND towing. They are following those standards. Is GM?
As long as RAM makes enough money to survive and improve their product, I am all for their most incentives, they have. I don't need to pay shareholder a new yacht every couple of years, like ford customer does, because excuse me, but ford didn't bring any new technology for last 6 years yet. No multilink rear suspension, no air ride.... Aluminium is not what customers asked for, but they are dreaming about 8 speed or 10 speed and small diesel still.
Keep dreaming losers, who lose most money for outdated technology, making ford shareholders happy.
As long as RAM makes enough money to survive and improve their product, I am all for their most incentives, they have. I don't need to pay shareholder a new yacht every couple of years, like ford customer does, because excuse me, but ford didn't bring any new technology for last 6 years yet. No multilink rear suspension, no air ride.... Aluminium is not what customers asked for, but they are dreaming about 8 speed or 10 speed and small diesel still.
Keep dreaming losers, who lose most money for outdated technology, making ford shareholders happy.
Posted by: RAM | May 16, 2016 3:14:11 PM
Of course, why would they need just a little more than just enough to survive on? When hard times come around again or fuel prices jump where people are not buying guide the gas guzzling fiat vehicles fiat will dump ram and chryler to save the fiat name. You thinknow Americans will stand for chrysler to get another bail out? Fiat has brought ram no technology except the economy fiat diesel. Everything else is riding on the coat tais of Daimler or what else they can buy to install on their vehicles. Both. Ford and GM actually bring technology to the table.
@LMAO
Maybe you missed that, but RAM has most efficient Full size truck's , so they are prepared for gasoline price to jump up again.
Well, also Canada taxpayers paid for Chrysler and GM. You forgot to mention 8 speed and 9 speed Eh?
I am waiting for that technology what Ford and GM brought to the table for last 6 years. Please don't say , that 27 cameras or back up assist, because I will LMAO.
Just for the record, Ford is Mexico, Ram is Italy and GM is also a global brand.
Toyota is Texas, and Nissan is Tennessee and Texas.
There is no "Detroit" anymore.
Posted by: papa jim | May 16, 2016 10:19:13 AM
Just for the record & correction papa jim's false claims;
http://www.msn.com/en-us/autos/research-guides/made-in-mexico/ss-BBsE5rh?ocid=iehp%20-%20image=1#image=2
Ford is the only true US truck brand built locally...
@LMAO
Maybe you missed that, but RAM has most efficient Full size truck's , so they are prepared for gasoline price to jump up again.
Well, also Canada taxpayers paid for Chrysler and GM. You forgot to mention 8 speed and 9 speed Eh?
I am waiting for that technology what Ford and GM brought to the table for last 6 years. Please don't say , that 27 cameras or back up assist, because I will LMAO.
Posted by: RAM | May 16, 2016 4:23:03 PM
Actually no. When prices go up truck sales go down. The ecofiat diesel is hardly any answer considering there are only a very small percentage of those trucks available. So no, fiat will dump the ram, Chrysler, dodge brand and once again you guys will be on your own. The 9 speed is ZF. It is also riddled with issues. I know a local service writer for jeep and the 9 speed issues are their main intake. No resolution yet. We have all seen the Ford/GM 10 speed. So unless you are willing to go on record saying it will never come out be prepared to defend your ignorance in a few months. Like I said, fiat has brought nothing to the ram brand. ram is riding on the coat tails of Daimler.
And what you do is write completely inaccurate statements. Ford is J2807 certified for its weight capacity aND towing. They are following those standards. Is GM?
Posted by: LMAO | May 16, 2016 2:08:32
I'm sure GM meets and exceeds. I'm not sure how many times i'll have to post this link before yous fords guys gets it.
http://news.pickuptrucks.com/2016/01/whats-the-best-light-duty-truck-for-towing-2016-texas-truck-showdown.html
I'm sure GM meets and exceeds. I'm not sure how many times i'll have to post this link before yous fords guys gets it.
http://news.pickuptrucks.com/2016/01/whats-the-best-light-duty-truck-for-towing-2016-texas-truck-showdown.html
Posted by: GMSRGREAT | May 16, 2016 5:00:35 PM
Are you sure GM meets and exceeds. Where is your certifications? You just proved nothing. But again not unexpected from you. You know since you joined this site to try and disprove everything I say yet it has not worked out for you yet. I am still waiting....................
Actually no. When prices go up truck sales go down. The ecofiat diesel is hardly any answer considering there are only a very small percentage of those trucks available. So no, fiat will dump the ram, Chrysler, dodge brand and once again you guys will be on your own. The 9 speed is ZF. It is also riddled with issues. I know a local service writer for jeep and the 9 speed issues are their main intake. No resolution yet. We have all seen the Ford/GM 10 speed. So unless you are willing to go on record saying it will never come out be prepared to defend your ignorance in a few months. Like I said, fiat has brought nothing to the ram brand. ram is riding on the coat tails of Daimler.
Posted by: LMAO | May 16, 2016 4:55:28 PM
RAM is ready for higher gasoline prices. They have 8 speed and 3.6 V6 and Turbodiesel. Ford, not so much. Ford will suffer more than RAM. Aluminium didn't cut it, ecoboost is paper scam and thirsty pig. New more powerfull ecoboost is going to be even more thirsty than the old one. Good ford thinking.
RAM 2500 has multilink rear coil suspension as well.
Ford doesn't sell 10 speed or 9 speed yet. I didn't see it and you didn't see it yeteither, but it's coming, like everything. I guess, you don't know anything ford brought to the table for the last 6 years , that's why you didn't mention anything at all.
That's also answer, which I expected.
RAM is ready for higher gasoline prices. They have 8 speed and 3.6 V6 and Turbodiesel. Ford, not so much. Ford will suffer more than RAM. Aluminium didn't cut it, ecoboost is paper scam and thirsty pig. New more powerfull ecoboost is going to be even more thirsty than the old one. Good ford thinking.
Posted by: RAM | May 16, 2016 7:09:06 PM
PSSSST turd rammer,,,,,,, the Ford Ecoboost series still does better at MPG, acceleration, braking, and towing than the fiat 5.7L gasser. Just so you know. LMAO. Oh almost forgot, that is with Fords 6 speed transmission and higher rear end gear ratio. Fiat has the purchased ZF 8 speed with 3.92 gears when compared to Fords 3.55 ratio. Thank you come again poser.
And if that is not the icing on the cake, and we all know you are fat and love cake, is not fiat is getting rid of the 5.7L for a boosted 6 cylinder? Seems like there was a link on your propaganda fiat website about it.
@LMAO
Ecoboost has good paper MPG to pleased obama. That's just about it. New more powerful model is gonna eat even grass beside the HWY.
I was talking about 3.6 V6 and Ecodiesel, but that's all right . I didn't expect you to address that and specially not to answer my question, what ford brought to the table for the last 6 years .
Keep dreaming about technology, RAM customers enjoy for years already.
Well for one turd rammer, Ford brought out the 3.5LGTDI, it worked out so well GM had to scramble to develop new engine designs to compete. Sure fiat has an 8 speed but in reality it did nothing for the fiat 1500. Your multilink rear suspension has worse handling and road holding than both Ford and GM trucks. So I don't think I would brag about that to much. Ford brought out 12vDC electric power steering. They brought out trailer sway control, integrated trailer brakes, oh higher consumer reports reliability scores. LMAO along with better crash test ratings.
Oh, how about highest trailer towing J2807 certified. Sure fiat went over the top with their 10lb higher rating with a short 3500 dually that is shorter than a max tow F150 and Ford is using a long wheel base 4 door 4x4 truck. Now that their is funny right there. Oh oh, fiat said all they had to do to raise the towing limit was add 2 ring gear bolts.
http://www.freep.com/story/money/cars/mark-phelan/2016/02/20/marchionne-reshapes-fiat-chrysler-merger-sale/80520970/
I guess fiat has this going for them. LMAO. Kinda have to wonder how the books are being fudged to make a merger "look" better
Your multilink rear suspension has worse handling and road holding than both Ford and GM trucks. So I don't think I would brag about that to much.
Posted by: LMAO | May 16, 2016 8:38:46 PM
You are mistaken. Every manufacturer on the world uses multilink for better handling. No one uses 150 years old cheap leafs for that. Not even Kia.
I didn't check the link you posted, but FCA works with google. Take that!
@Lionel
Ford already buys aluminium from India company, so you are ahed of the RAM in this case, driving India aluminium. LOL.
@Lionel
Why do you have to call me a names? I didn't do that. You was the one mentioning India first. You have to learn to receive punches as well. Enjoy your India Aluminium truck.
@Lionel
You didn't offended me. I just pointed out, what you do, when you have no arguments. RAM posters talks about trucks and attack other brands. Ford posters makes personal attacks all the time someone points out their brand weakness.You can see this pattern all the time. Ford customers are attached to the ford like girlfriend. That's why they will suck any PR department statements and ford commercials no questions asked.
Your truck will not rust, but will corrode.
You should really think twice before posting silly points & unfounded comments...
@Clint
Loser, Ford?
Last time I checked GM sells more pickups than Ford. And I happen to like some of Ford's products, such as the F150 that was built between 2011 and 2014. The new Mustang.
That said, the Taurus, the Flex, the Expedition, the Explorer are products that are horribly outdated.
Just compare a new Impala with a Taurus if you dare. Ride in a Ford Explorer, then take spin in any GMC Acadia or Chevy Traverse built during the last nine years--no comparison. The Expedition limps along on life support and it should be the class of the field.
The whole Lincoln lineup is a joke. A shame!
Ford has traded their decades of product and marketing muscle for a few years of strong balance sheets, which is why the Taurus is such a joke. They saved the Mustang thank God!
You are mistaken. Every manufacturer on the world uses multilink for better handling. No one uses 150 years old cheap leafs for that. Not even Kia.
I didn't check the link you posted, but FCA works with google. Take that!
Posted by: RAM | May 16, 2016 9:10:40 PM
You may want to check your facts. No body uses a solid rear axle in cars. Multilink does hardly nothing to improve road holding on a solid rear axle vehicle. Just look at what Ford was doing with the previous Gen mustang. Independent rear suspension is where you get your handling. That is why Ford finally went IRS. The only thing multilink does is helps give a softer ride. Which is why fiat trucks have a soft ride and no cargo capacity. To bad so sad turdrammer.
The fact is the fiat 1500 has less road holding performance when compared to The 150 and GM twins. That has been published in many automotive magazine. So if you believe multilink has better road holding the your favorite brand screwed it up. So what is it then.
didn't check the link you posted, but FCA works with google. Take that!
Posted by: RAM | May 16, 2016 9:10:40 PM
Yea if I were you I wouldn't check the link either. Maybe something will be written about it on your propaganda nopar website. Haha, we know better than that don't we.
Multilink does hardly nothing to improve road holding on a solid rear axle vehicle. Just look at what Ford was doing with the previous Gen mustang. Independent rear suspension is where you get your handling. That is why Ford finally went IRS. The only thing multilink does is helps give a softer ride. Which is why fiat trucks have a soft ride and no cargo capacity. To bad so sad turdrammer.
The fact is the fiat 1500 has less road holding performance when compared to The 150 and GM twins. That has been published in many automotive magazine. So if you believe multilink has better road holding the your favorite brand screwed it up. So what is it then.
Posted by: LMAO | May 17, 2016 5:08:41 AM
Hahahahahahahaha.
All of it is completely wrong.
Hahahahahahahaha.
All of it is completely wrong.
Posted by: RAM | May 17, 2016 7:59:08 AM
Of course it is. You are a turd rammer that claims to be an engineer. Yet you don't even read comparison articles because they always place your Fiat truck last. At least you are happy in your hole. That is what really counts.
Yet you don't even read comparison articles because they always place your Fiat truck last. At least you are happy in your hole. That is what really counts.
Posted by: LMAO | May 17, 2016 8:24:03 AM
Hahahahahahaha.
That's also completely wrong.
The Ram rear suspension with the panhard bar offers better sway control. The panhard bar controls rear side travel better than leaf springs , particularly when loaded. The problem with the RAM 1500 is, it is too heavy and thus road holding suffers.
The Ram rear suspension with the panhard bar offers better sway control. The panhard bar controls rear side travel better than leaf springs , particularly when loaded. The problem with the RAM 1500 is, it is too heavy and thus road holding suffers.
Posted by: GMSRGREAT | May 17, 2016 10:09:00 AM
The pan hard bar keeps the axle centered because of the multilink set up. If you did not it would be all over the place. Defiantly an issue with a much heavier vehicle. Leaf springs do allow for minimal movement but by nature they keep the axle centered. Sway control is more in the shocks, sway bar, and spring rates. If you can minimise the heavy lean to one side or the other when cornering this will provide a much more stable ride. You are not unloading the steer tires as bad thus helping with vehicle dynamics. But how good does any normal truck handle anyways. They are large heavy vehicles that drive so much beet now than they ever have. If you want real stability you have to go IRS. All the corner carvers have been IRS for a long time. Drag racing, solid rear seems to be the choice.
But as it stands
Fiat ram .71g road holding
Chevy .73g road holding
Ford 150 .75g road holding
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