New Truck Sales: Big is Back

trucksHeavyDuty

Detroit Free Press - March 21, 2013

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.

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