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Sierra Silverado
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Pickups sales have been high because they are reliable when it comes to engine power and performance. In fact, Detroit automakers are considering this type as sales and profit boosters as compared with SUVs.
In today's modern time, the pick ups evolved into more sophisticated vehicles. They now have expensive features found on cars that include leather seats, booming stereos and large passenger compartments. Moreover, pickups have also adopted the same image as SUVs and are now parked in industrialized areas - gone are the days for "construction site only parking".
Unfortunately in terms of popularity and sales, SUVs surpassed pickups. And even for companies with the newest models, truck sales have dropped while rebates and other incentives are climbing.
Two months ago, Bucky Hacker exchanged his 2002 Dodge Ram Quad Cab pickup with a subcompact car - the Mazda 3 with top of the line Mazda throttle position sensor. A student from Oak Ridge, Tennessee, Mr. Hacker bought his Dodge vehicle to drag a boat and also to attract girls with its very masculine appearance.
But he was ridiculed. His Dodge gas consumption reached 13 miles per gallon just for towing the boat while his new Mazda averages twice that or 26 miles per gallon in city and highway driving.
According to him the reasons behind the decline in the truck sales are the customers' growing sense of environmental concern, the steeping gas prices, and the uncertain housing market which triggers number of contractors to delay buying new trucks. All these caused the sales drop to 5 percent so far from last year's weak market. Such percentage is more than 50 percent of the overall decline in industry sales which is so far 2 percent down this year.
As a result, car manufacturers began expecting pickup sales to drop since late 1990s up to this year.
According to the Power Information Network, the average discount on a Dodge Ram is $6,000 - a $500 increase since January. On every Silverado pickup, Chevrolet is paying an average of $2,343 in incentives. When the truck was new at the beginning of the year, the brand doubled its discounts.
The same data showed that even Toyota discounted its Tundra during its introduction in February by an average of $2,000.
A data from CNW Marketing Research, which follows industry trends, showed that 6 years ago, 28 percent of consumers all over US who bought pickups did so because of the vehicles' appearance. But this year, only 16 percent of customers purchased big trucks with the primary reason of their looks.
Art Spinella, the president of CNW, said that the buyers who have defected will not go back. They would rather find other stylish vehicles. He added that contractors, farmers or ranchers who need pickups for their businesses will continue to buy them, but not so often like the previous decades.
Ford, which strongly depends on trucks, has 24 percent sales on pickups and 41 percent on the company's gross North American profits during the past five years. This was according to Mr. Johnson's computations in a research report.
Same as Ford, GM, too, heavily relies on pick ups. GM's 32 percent of gross profits is composed of 20 percent pickups sales and others; while Chrysler pickups contributed 25 percent of its profits and 18 percent were pickups vehicle sales during the past five years.
Ford's loss of $12.6 billion was attributed to the decline in pickup truck sales in 2006. However, such figure is also attributed to the company's restructuring plan.
However, despite economic dread, some dealers say their pickup truck business has remained as it is.
Meanwhile, auto makers that were badly affected by such trend on trucks are optimistic that they will soon find a way to regain their losses.
To make pickup trucks marketable again like decades ago, car companies must address the issue on the vehicles' fuel economy and make some more innovations. After all, everybody now is affected by the continuously increasing gas prices while considering vehicle design and styling.
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Kraig Johanssen is a native of Connecticut and holds a degree in Software Engineering. He now works at a software development firm in Alabama. His love for writing and great interest on cars makes him a proficient contributing author to various automotive magazines.
Remade Silverado Sums Up Pickup Power
General Motors knows exactly that a mild error could mean a detrimental fall. Moreover, all its entries are meticulously conceptualized and tested to boost the automaker’s fragile standing. The current version of the Chevrolet Silverado, to boot, is now bolder, bigger and also better.
The remade Chevrolet Silverado, a full sized truck that replaced the GMC Sierra, is given significant upgrades and modifications to boost its already outstanding performance and appearance. The meaner look of the truck contributed to its high-performing trace. In fact, it is also equipped with parts truck fuel pump aftermarket to enhance the purpose.
The all-new Chevy Silverado, the second best-selling pickup truck behind the Ford F-Series, was launched by the automaker to entice more truckers. GM's vice chairman of global product development, Bob Lutz said, "We can't keep making vehicles to be as good as the competition. We have to aim three notches higher so by the time we hit the market, we're in the lead - we can't just be good enough anymore."
Chevy is the biggest brand of General Motors and the Silverado is Chevy’s cream of the crop model with a remarkable 636,000 units sold in the previous year. Despite tough truck competition from the Ford F-Series, Toyota Tundra and the Dodge Ram, the automaker expects to sell more units this year. According to industry critics, with the remade Silverado, GM can put up an even tougher fight.
With the new $850-million Tundra facility in San Antonio, Texas to produce 200,000 trucks a year, Toyota is said to be a serious threat to both Ford and GM. The Toyota Tundra, with a length of 228.7 inches and a wheelbase of 145.7, is virtually spot-on with the Chevrolet Silverado. With regards power source, the Toyota Tundra is powered by a 5.7-liter V-8 and a six-speed automatic, which is capable of producing about 400 horses and more than 400 pound feet of torque. When towing capacity is to be made an issue, Toyota said the Toyota Tundra is engineered to tow more than 10,000 pounds. These facts alone should make GM more cautious.
However, the greatest threat to Chevrolet is the prolonged dominance of the F-Series trucks from Ford. Said series has been sold for more than 5 decades now. Its most popular variant is the Ford F-150. So far, it has established a record for 23 years as the best selling truck in America. It is also the best selling truck around the globe for 39 years now. The sales of the Ford F-Series are so strong that it makes up half of the automaker’s profit in the previous years.
The serious threats surrounding GM is pretty tough. To circumvent this, the automaker is continuously launching striking and groundbreaking vehicles to boost its edge in the auto market. Furthermore, it has rebuilt the Chevrolet Silverado not just to improve the overall appeal and performance of the vehicle but to enhance GM’s performance as well.
About the Author
Joe Thompson is the owner of a successful auto body shop in Ferndale, California. This 38 year old is also a prolific writer, contributing automotive related articles to various publications.
Half 1/2 ton truck comprison F-150,Silverado,Sierra, Ram, Tundra, and Titan?
Of course, it must be a matter of personal experience and/or preference, but SERIOUSLY, I would like to ask all of half ton truck lovers about what truck is the best in the market.
Personally, I have leased 07 Tundra D-cab for 3.5 months (only 3K miles on it), but I have had too many problems including engine that totally died out recently. I am working with Toyota now to get my money back and walk away from the lease contract. If it does not work out, I will go through Texas Lemon Law. If it works, of course, I need to buy one. Toyota does not give me reliablity any more, so I am looking to Ford F-150. Before I go ahead, however, I would like to ask truck lovers their opinions on those trucks. Feel free to include your personal experience/preference, but I would like you to be as fair as possible. Thanks for your opinions in advance!!!
In my experience the Ram and the Titan are very good trucks. I personally own a Titan and love it. Great power and a lot of features that comparably priced trucks just dont have. A friend of mine owns several Dodge Rams and they are also very reliable and seem to be well built. Not as fast as my truck, but pretty ok! I have driven many Chevys and they are piles of shit. At least the newer ones are. Constant problems with fuel pumps and obscure sensors. And the Fords I would not ever consider buying unless it was a diesel model.
GM turns first-quarter profit of $865 million
It's 'a significant turnaround,' says one analyst, and compares with a loss of $6 billion in the same period in 2009. The automaker plans a host of new-car introductions in the second half of the year. After a string of 10 consecutive money-losing quarters, General Motors Co. said Monday it had earned a profit of $865 million in the first quarter of this year, aided by an improving U.S. economy ...
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