General Motors’ and Ford’s North American profits and market share should grow in the next couple years, thanks to new large pickups.
Find out what new truck sales could mean for automakers.
GM’s new trucks are rolling out in the next few months, and Ford is expected to replace the F-150 next year.
The two domestic automakers are forecast to outperform the industry, and pickups will account for the majority of volume gains until 2015, Itay Michaeli of Citi Research told investors Wednesday.
Citi expects large pickups to grow from 11.3% of the U.S. market in 2012 to 12.8% in 2015. The total market is expected to reach 16 million sales, and pickup sales will account for 2.4 million of them.
Ford gets about $4,000 more per truck sold and Ram pickups average $2,000 more per sale than Chevrolet Silverado and GMC Sierra, Michaeli said.
If GM can get an extra $2,000 in new truck sales, on almost 1 million, it represents a $2-billion opportunity, Michaeli said. The figures are realistic, given that the new Ram sold for about $1,600 more than the model it replaced.