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Deep discounts — $12K, $13K, $16K — are fueling a pickup price war

Heavy discounts of up to $16,000 per vehicle are fueling a "truck war" among full-size pickups sold in the United States by the Detroit Three, a Reuters analysis shows. Strong U.S. sales this year of the highly profitable big trucks have helped offset lagging passenger car sales. But it is not clear how much of the truck demand is linked directly to ample factory incentives and dealer discounts, or how far sales might decline without those subsidies. A Reuters survey of Ford, General Motors Co's Chevrolet and Fiat Chrysler Automobiles's Ram truck dealers across the United States indicates stores are offering deep discounts the country's bestselling full-size pickup trucks. "The walls are not crashing down on full-size trucks," said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions in Chester Springs, Pennsylvania. Detroit-based automakers want to keep cranking out their high-margin trucks, he added, and "giving up a little of the profit is the cheapest way to do it." Stores are offering discounts of up to $12,000 on the 2018 Ford F-150, which remains the best-selling vehicle in the country, recording more than 80,000 sales in May. Discounts run up to $13,000 on the 2018 Chevrolet Silverado and as high as $16,000 on the Ram 1500. Average transaction prices for full-size pick-ups range from around $42,000 to $45,000, industry analysts and automakers say. All three companies are spending furiously - GM and Fiat Chrysler to help sell off carryover 2018 trucks to prepare for redesigned 2019 models, and Ford to sustain its long-held sales crown. A supplier fire that temporarily shut down production of the F-150 last month "changed the game," said Jeff Schuster, senior vice president of forecasting at LMC Automotive in Troy, Michigan said. The supply halt nudged Ford's crosstown rivals "to ratchet up incentives on the current models to go after weakness at Ford," he said. Deals advertised on the companies' official websites range from rebates and low-interest loans to ultra-cheap lease rates, but they are not telling the whole story. Ford, for instance, advertises a $2,000 rebate and a $500 financing credit on sales of certain F-150 models. But James Collins Ford in Louisville, Kentucky, is offering discounts of up to $12,215 on the 2018 F-150 XLT SuperCrew 4x4. The price cuts are even steeper at a number of GM and Fiat Chrysler dealers. Quirk Chevrolet is selling the 2018 Silverado 1500 Double Cab at $13,000 off sticker.

Pushing Back: GM expanding Chevrolet into Korea, Daewoo out

Chevrolet Camaro goes to South Korea - Click above for high-res image
General Motors decided several years ago to begin heavily promoting Chevrolet as its global mainstream brand even in markets where its existing brands like Opel and Daewoo were a dominant force. Today, at the Busan Motor Show in South Korea, GM Daewoo president Mike Arcamone announced that the Camaro would lead the way in GM's efforts to market Chevrolet in South Korea.
For now at least Chevrolet and Daewoo-branded vehicles will coexist in the Korean market. However, while we were in China last week GM officials told us that the Daewoo brand, which has been somewhat tainted by past quality issues, would eventually be phased out in favor of Chevrolet. When the new Aveo launches next year it will likely be badged as a Chevrolet even though GM Daewoo is in charge of engineering the car.

GM to squeeze out more production capacity for midsize trucks

General Motors was predicting a strong showing for the Chevrolet Colorado and GMC Canyon before they debuted, and demand among dealers for the midsize trucks even exceeded company's expectations. The positive situation has left GM with a problem, though: finding ways to increase capacity for the pickups at the Wentzville Assembly plant in Missiouri. With a third shift already running, GM has continued to look for ways to build just a few more of the trucks at the plant. The company has plans to hire as many as 1,000 more workers for the Saturday and Sunday shifts to construct an additional 2,000 pickups a month, according to unnamed insiders at the factory speaking to Automotive News. The little adjustments even extend to getting rid of an unpaid break to add 18 minute of assembly time over the course of a day, which equals about 3,500 more vehicles a year. All of this effort comes because the trucks are in such high demand. According to GM's figures, the company has delivered a combined 35,720 units of the Colorado and Canyon from January through April 2015, and the Chevy was the fastest-selling truck in the US for the previous three months. In May, it spent an average of just 12 days in showrooms before being snapped up. And even better for the company, 43 percent of these buyers came from other brands. According to Automotive News, the most popular trade-ins have included the Ford F-150, Toyota Tacoma, and Dodge Dakota. Related Video: