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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.

Pickup prices rising at 2x industry average

We've said it before, but bears repeating: Pickup trucks are the financial engines of America's automakers. Good thing, then, that the segment is in rude health - in fact, Automotive News is suggesting that pickup truck sales are arguably healthier than they were pre-recession, even though the segment's volume is still significantly down from where it was before the bottom fell out of the US economy. That's because per-unit profits on full-size trucks are skyrocketing, outpacing the industry's average price increases by more than double since 2005. According to data from Edmunds, the average transaction price of a full-size pickup is now $39,915 - a heady increase over the $31,059 average price in 2005 - a gain of over 8 percent after inflation is factored in.
Just how important are trucks to automakers' bottom lines? Automotive News quotes a Morgan Stanley analyst as saying the Ford F-Series is responsible for 90 percent of the company's 2012 profits, and General Motors isn't far behind, with the Chevrolet Silverado and GMC Sierra twins chipping in about two-thirds of the automaker's earnings.
Automotive News points out that Detroit's automakers now have the money to invest in modernizing their full-size truck offerings, in part because they don't have the same overhead and legacy costs that pushed General Motors and Chrysler into bankruptcy. Certainly, the pickup segment has seen a lot of innovations as of late, including turbocharged V6s, coil-spring rear suspensions and active aero. Those improvements in important areas like fuel economy and ride comfort have given existing pickup buyers new reasons to upgrade. In addition, automakers are piling on the tech and luxury goodies, creating more and more high-content, high-profit models like the Ford F-150 King Ranch, Ram 1500 Laramie Longhorn and Chevrolet Silverado High Country (shown).

Junkyard Gem: 1973 Mercury Marquis Brougham 4-Door Pillared Hardtop

Ford's Mercury Division debuted the Marquis in the 1967 model year, as a sporty coupe based on a stretched Ford LTD chassis. When the LTD got an update for 1969, so did the Marquis, and production of that generation of the top-of-the-line Mercury continued through 1978 (the Grand Marquis hit streets the following year). The 1969-1978 Marquis was a big, imposing land yacht, and the Brougham version came absolutely loaded with affordable luxury. Today's Junkyard Gem is a Marquis Brougham from the first year of the Malaise Era, found in a Phoenix self-service car graveyard recently. This car appears to have spent decades sitting outdoors in one of the harshest climates in the country, and so it's in rough shape. The vinyl top received the full thermonuclear treatment and is mostly obliterated by now. The interior got thoroughly cooked as well. Still, its original opulence shines through if you use some imagination. What hurts is that this car was packed with most of the good options, including the mighty 460-cubic-inch (7.5-liter) V8 engine with four-barrel carburetor. The price for the 460 was just $76 in this car, or around $548 in today's money. The base engine was a 429 (7.0-liter). Power numbers were way down for 1973 when compared to a couple of years earlier, partly as the result of tightening emissions standards but mostly due to the switch from gross to net power ratings that began midway during 1971 and was completed by the end of 1972. This engine was rated at 202 horsepower and 330 pound-feet. The only transmission available was a three-speed automatic. We can assume that the original buyer of this car and its single-digit fuel economy had a rough time when the OPEC oil embargo hit in the fall of 1973. Believe it or not, air conditioning was not standard equipment on the '73 Marquis Brougham (you had to move up to a Lincoln for that). This one even has the automatic temperature control feature, adding a total of $508 to the cost of this car (about $3,661 in 2023 dollars). That AM/FM/8-track radio—or, in fact, any radio—was an extra-cost option as well, with a price tag of $363 ($2,616 after inflation). The MSRP for the 1973 Marquis Brougham sedan (known as a "pillared hardtop" thanks to the frameless window glass) was $5,072, which comes to $36,555 in today's dollars. Obviously, its out-the-door cost would have been much higher with all the options.