Is the auto industry setting itself up for another big truck bust?

[redriderbob]

Is the auto industry setting itself up for another big truck bust?
Randy Essex, Detroit Free PressPublished 6:00 a.m. ET Jan. 27, 2018 | Updated 11:00 a.m. ET April 26, 2018



This column, originally published in January, has been updated to reflect Ford Motor Co.'s announcement that it will stop making almost all cars.

Are we really immune now to economic cycles – including in the oil and auto industries?

Today's dominance of trucks in the auto industry echoes 2006. Then and now, the automakers’ mantra is that consumers want big SUVs and big trucks.

Ford's announcement Wednesday that it would stop making all but two of its passenger cars, killing the Taurus, Fusion, Fiesta and C-Max, underscores domestic automakers' shift away from sedans.

Today, pickups and SUVs are bigger and more expensive than ever — it’s easy to spend north of $50,000 on a pickup and not unusual for prices to hit $90,000. The 2019 Dodge Ram 1500 rolled out at the Detroit auto show in January is longer, wider and higher than its already-darn-big predecessor.

General Motors had a fleet of new Silverados at the show, across the aisle from a battalion of Ford F-150s and the new mid-size Ranger.

Read the whole article here...
https://www.freep.com/story/money/cars/2018/01/27/big-truck-tiny-home/1063217001/

 

[Jared B]

This is something that I'm concerned about. Here in B.C, gas is touching on $1.60 a litre while as automakers are moving away from passenger cars into CUVs and SUVs.

I understand that is where the profitability is for them but can't help but wonder if it's a little shortsighted.

 

[redriderbob]

This is something that I'm concerned about. Here in B.C, gas is touching on $1.60 a litre while as automakers are moving away from passenger cars into CUVs and SUVs.

I understand that is where the profitability is for them but can't help but wonder if it's a little shortsighted.

Problem is Canadian sales are only a fraction of US sales... since why the trends go more towards the US economy way.

 

[devildodge]

I have to admit, the market for trucks makes me angry. The price on used trucks is ridiculous. If I was to purchase a new vehicle and could only buy one...it would have to be a truck.
Where I live and the things I do require it.
I would love to have a charger like @redriderbob, or if buying new would love a challenger gt...that would take care of winter driving, but I live in rural Central Pennsylvania were sometimes the plow truck doesn't make it. And I live in the woods (we do have an in town house for convenience during school year.) Right now my driveway looks like something from a tough truck competition. So no matter what gas prices or the economy do, I have to have a truck... (why we have 3)

So secretly I am hoping something gives...but quite frankly, people drive whay they want, very rarely what they need. Well, I want and need a truck, so the more they make the more selection I have...just wish the prices would come down...but I have come to understand the truck that used to be 10 grand on the used market...well it is now 25 grand. Oh well, it is only money.

 

[mopar22]

I don't think we're gonna see the trucks bust. I actually think full size trucks are moving upmarket and midsize are gonna take the role of the traditional truck since they're pretty much the size of a full size one. If any of them are gonna must it's gonna be the 2500+. There's so many people trying to sell heavily used and modified 1-2 year old trucks for teh same price of when they got it, that's not sustainable.

 

[Jared B]

Problem is Canadian sales are only a fraction of US sales... since why the trends go more towards the US economy way.

Absolutely, the Canadian market is very small compared to the US market. Trucks and utility vehicles are hot right now so it makes sense. Apparently Ford is losing money on every passenger car they sell.

I don't think we're gonna see the trucks bust. I actually think full size trucks are moving upmarket and midsize are gonna take the role of the traditional truck since they're pretty much the size of a full size one. If any of them are gonna must it's gonna be the 2500+. There's so many people trying to sell heavily used and modified 1-2 year old trucks for teh same price of when they got it, that's not sustainable.

I don't think trucks will go bust either, it's a very hot market, I also feel that there is a ton of growth to be had in the midsize market. With the introduction of more mid sized trucks and smaller fuel efficient diesels that a lot of markets outside NAFTA have had for a long time that market will find itself a lot of buyers.

I just worry that if gas shoots up again the domestic automakers might get caught with their pants down. In B.C gas prices are the highest they've ever been and are predicted to still go up by a longshot. Enough so that it forced me to purchase a fuel efficient vehicle for a daily which is generally a market that I'm not too interested in.

I do know that B.C is kind of a special case for fuel prices though, especially with the other stuff going on between us and Alberta right now.