New Truck Sales: Big is Back

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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