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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.

Mark LaNeve named head of Ford US sales and marketing

Ford continues to rework the positions of its top marketing executives as Jim Farley moves to take over the Blue Oval in Europe and Stephen Odell becomes head of global sales. The latest shift brings Mark LaNeve in as the new vice president of US marketing, sales, service and dealer relations, effective February 1. LaNeve replaces John Felice, who is retiring. Felice was with the automaker for the last 30 years and held his most recent job since November of 2013. In addition to coordinating marketing and sales, LaNeve's other duty is to build "innovative new digital communications and transforming the retail experience for customers," according to the automaker's press release announcing the change. He reports to both Odell and Joe Hinrichs, Ford's boss of the Americas. LaNeve has a long history in the auto industry. He spent a portion of his early career with Cadillac but eventually was hired as the CEO of Volvo Cars North America. He also headed up US marketing at General Motors for several years in the 2000s. Since 2012, LaNeve has been the chief operating officer at Global Ford Team, which is responsible for the company's worldwide advertising. There's an interesting challenge ahead of LaNeve in leading the Blue Oval's US marketing and sales in 2015. Ford was the bestselling auto brand here in 2014 but overall sales fell about 1.1 percent. According to Automotive News, the company's market share dropped to 14.9 percent, a one-percent reduction and the lowest level since 2008. Read below for the automaker's official announcement of LaNeve's new job. JOHN FELICE RETIRING AFTER 30 YEARS; FORD NAMES MARK LANEVE TO LEAD U.S. MARKETING, SALES AND SERVICE TEAM John Felice is retiring as vice president, U.S. Marketing, Sales and Service, after 30 years of service Mark LaNeve, named vice president, U.S. Marketing, Sales and Service and elected a Ford Motor Company officer; former chief operating officer at Global Team Ford brings nearly three decades of automotive marketing and sales experience to Ford Ford Motor Company [NYSE: F] announced today changes in its senior leadership team as it continues to deliver and accelerate the company's One Ford plan while driving for product excellence and innovation. John Felice, vice president, U.S. Marketing, Sales and Service, has elected to retire after 30 years at Ford, effective Feb. 1, 2015.

New UAW boss Williams talks tough, vows 'no more concessions'

Dennis Williams, the newly elected president of the UAW, had some tough words for American automakers in his inauguration speech at the 2014 UAW Convention, striking down the possibility of any additional concessions from the 400,000-strong union.
"No more concessions. We are tired of it. Enough is enough," Williams said during his speech. UAW employees have not received a raise in nearly 10 years, according to Reuters.
Considering the recent strong results for Ford, Chrysler and General Motors, the union's demands are likely to carry a bit more weight in next year's negotiations. And considering Williams' tough stance, we could be in for some fireworks once negotiations commence.