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Coronavirus shakes up America's truck market: GM outselling Ford and Ram

FCA, Ford and General Motors joined the rest of the U.S. auto industry in taking heavy volume hits due to coronavirus-related shortages of both cars and customers. The saying goes that a rising tide lifts all boats; it stands to reason, then, that a falling one would have the opposite effect.  However, as we learned Thursday, the automotive market can behave in unpredictable ways. While the F-Series remained the best-selling nameplate in Q1, GM's full-size trucks are now outselling Ford's again for the first time in years, and with this upward thrust from the General, FCA's Ram was unceremoniously booted out of a hard-earned second place.  While late-March sales declines hit just about every major automaker in one way or another, the model-by-model results weren't nearly so uniform. And because the market tends to be a zero-sum game, for every winner, there generally has to be a loser.  In this case, that winner was GM, and its rise had to come at the expense of another automaker, in this case, Ford. F-Series sales dropped 13.1 percent in the first quarter of 2020, while sales of GM's full-sized Silverado and Sierra surged nearly 28% in the same period. FCA's Ram lineup managed a steady-as-she-goes 7% increase. All-in, GM finished the quarter with 197,743 full-size trucks sold to Ford's 186,562. Here's the full breakdown: Ford F-Series: 186,562  Chevrolet Silverado*: 144,734 Ram P/U: 128,805 GMC Sierra: 53,009 *includes 1,036 Medium Duty sales Things are a but murkier in the midsize segment, where the Chevy Colorado slipped 36% to just 21,430 units sold — just a few hundred better than the slow-selling Ford Ranger's Q1 numbers. The GMC Canyon experienced an almost identical slide, finishing the quarter with just 4,483 units sold. For perspective, Jeep sold more than 15,000 Gladiators and Toyota's midsize Tacoma slipped less than 8%, finishing the quarter with nearly 54,000 sales.  We suspect this discrepancy in full- and mid-size truck sales comes from shifting incentives. Ford, GM and FCA would like to keep selling bigger trucks because there's far more profit margin built into their list prices. Even with tens of thousands of dollars in manufacturer money on the hood, big trucks still make money.  Since these automakers report quarterly, we won't get another good look at these numbers until July, but if you thought that 2019 represented the new normal for U.S. auto sales, well, think again.

Weekly Recap: Lamborghini to build SUV

Finally, Lamborghini will build a sport utility vehicle. The Italian supercar maker confirmed this week that it will launch a luxury SUV in 2018. It will be built at Lamborghini's soon-to-expand factory in Sant'Agata Bolognese in Italy, and will double the company's current sales volume. Lamborghini did not announce a name for the vehicle or other details, but noted a concept version, the Urus, was displayed at the Beijing motor show in 2012. It will be sold around the world, but it's expected to be a critical offering in the United States, China, and the Middle East. The automaker projects the SUV will sell about 3,000 units per year, and it will be the third product in Lamborghini's portfolio. It currently sells the Huracan and Aventador supercars. "The introduction of a third model line endorses the stable and sustainable growth of the company and signifies for us the beginning of a new era," Lamborghini chief executive Stephan Winkelmann said in a statement. The project is also a boon for Italy, which will get 500 new jobs in the Emilia Romagna region as Lamborghini's factory will nearly double in size. Ian Fletcher, principal analyst for IHS Automotive, said the SUV will position Lamborghini for future growth. "It could well also bring new customers to the brand [who] may find the dramatic styling of Lamborghini products appealing, but find its typical sports cars restrictive," he said. "If it is a success, the SUV could be a catalyst to Lamborghini broadening its portfolio further." OTHER NEWS & NOTES GM invests in Chevy Camaro factory General Motors is investing $175 million to upgrade its factory in Lansing, MI, to build the 2016 Chevy Camaro. The investment will pay for new tooling and equipment. The improvements include three new paint systems and two new robotic framers. GM will add a second shift at the factory to build the Camaro, resulting in 500 jobs. The automaker had dropped the plant to one shift last year amid slow sales for its products, the Cadillac ATS and CTS. GM is spending $5.4 billion over the next three years to upgrade its US facilities. Last week, GM announced plans to spend $439 million to build a new paint shop for the Chevy Corvette. While the Camaro and Corvette plant improvements are intriguing to enthusiasts, GM also confirmed this week that it is investing $1.2 billion in its Fort Wayne (IN) factory that builds trucks.

The USPS needs 180,000 new delivery vehicles, automakers gearing up to bid

Winning the New York City Taxi of Tomorrow tender was a huge prize for Nissan, even though the company is still working through the process of claiming its prize. The United States Postal Service has begun the process to take bids for a new delivery vehicle to replace the all-too-familiar Grumman Long Life Vehicle, and that will be a much larger plum for the automaker who wins it, perhaps worth more than six billion dollars. The Grumman LLV is an aluminum body covering a Chevrolet S-10 pickup chassis and General Motors' Iron Duke four-cylinder engine. The USPS bought them from 1987 to 1994, and the 163,000 of them still in service are a monumental drain on postal resources: they get roughly ten miles to the gallon instead of the quoted 16 mpg, drink up more than $530 million in fuel each year, and their constant repair needs like the balky sliding door and leaky windshields have led the service to increase the annual maintenance budget from $100 million to $500 million. A seat belt is about as modern as it gets for safety technology, and the USPS says that assuming things stay the same, it can't afford to run them beyond 2017. Last year it put out two triage requests for proposals seeking 10,000 new chassis and drivetrains for the Grumman and 10,000 new vehicles. The LLV is also too small for the modern mail system in which package delivery is growing and letter delivery is declining. The service says it doesn't have a fixed idea of the ideal "next-generation delivery vehicles," but it listed a number of requirements in its initial request and is open to any proposal. Carriers have some suggestions, though, saying they want better cupholders, sun visors that they can stuff letters behind, a driver's compartment free of slits that can swallow mail, and a backup camera. The request for information sent to automakers pegs the tender at 180,000 vehicles that would cost between $25,000 and $35,000 apiece, and it will hold a conference on February 18 to answer questions about the contract. GM is the only domestic maker to avow an interest, while Ford and Fiat-Chrysler have remained cagey. Yet with a possible $6.3 billion up for grabs and some new vans for sale that would be advertised on every block in the country, we have a feeling everyone will be listening closely come February 18. We also have a feeling the LeMons series is going to be flooded with Grummans come 2017. News Source: Wall Street Journal, Automotive News - sub.