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Detroit Three's lucrative pickup war intensifies as Ram makes big gains

DETROIT — The battle for profits from sales of large pickup trucks is intensifying among the Detroit Three automakers as sales of small cars in the United States shrivel. For decades Ford has had the single best-selling truck brand in its F-Series trucks. General Motors' Chevrolet brand was a solid No. 2, and Fiat Chrysler Automobiles' Ram was a distant third. Now, that hierarchy may be in flux. Sales figures for December and the fourth quarter released on Thursday show Ram tied with GM's Chevy for the No. 2 spot, as sales of the redesigned Ram pickup surged, fueled in part by demand for an optional 12-inch (30.48 cm) dashboard screen. Chevy not long ago held second place to Ford by a wide margin. GM executives said on Thursday they are bullish on their new GMC and Chevy trucks for 2019.Related: How the Detroit Three's pickups compare on paper 2019 Ram 1500 Laramie review 2019 Chevy Silverado 2.7L four-cylinder review 2019 Ford F-150 2.7L EcoBoost review "There's no doubt this segment (pickup trucks) is one of the epicenters of the auto wars," said Sandor Piszar, director of marketing for Chevrolet at GM. "It's been that way forever, and we wouldn't have it any other way." On Wall Street, investors give electric car leader Tesla a higher valuation than any of the Detroit automakers. But in the nation's heartland, big pickups remain far more popular and profitable than any electric car — and most other consumer vehicles of any kind. Large pickups generate at least $17,000 a vehicle in pretax profit for GM, the company has indicated in disclosures to investors. By contrast, many Detroit Three sedans are so unprofitable, their manufacturers have decided not to build them anymore. 'Hotly contested' Sustaining sales and pricing in the large-pickup segment will be critical in a year when most forecasters expect overall U.S. car and light truck sales to fall. Ford's U.S. sales chief, Mark LaNeve, on Thursday called the F Series "the backbone of our franchise" during a conference call, and added the "segment will continue to be strong, but hotly contested" in 2019. Automakers are banking on pickup truck sales to stay strong even if U.S. interest rates continue to rise. Rising interest rates translate into higher monthly car payments and are expected to deter some buyers in 2019. GM has said 27 percent of Chevrolet and GMC trucks — which can haul trailers by day and substitute for a luxury sedan by night — sell for more than $55,000.

Truck Trend names GMC Sierra Denali 2016 PTOTY

Citing its best-in-class power, its amenities, and technology, Truck Trend magazine has named the GMC Sierra Denali its 2016 Pickup Truck of the Year. Seven "all-new or significantly revised pickup trucks" were invited to compete, and out of the seven tested categories the Sierra won interior, functionality, and "Empirical," and scored second in highway testing and exterior looks. It beat the Chevrolet Silverado 1500 High Country and Colorado Z71 diesel, GMC Canyon SLT diesel, Nissan Titan XD Pro4X, Ram 1500 Rebel, and Toyota Tacoma TRD Off-Road. In the mag's 43rd annual Four-Wheeler of the Year award, the Range Rover SVR claimed the crown. The Sierra got refreshed this year with new front-end styling with HID headlamps and LED accents, tech features like Apple CarPlay, Android Auto, and wireless phone charging, and optional convenience features like a remote locking tailgate and power articulated assist steps. The big powertrain upgrade was availability of the 5.3- and 6.2-liter V8s with an eight-speed automatic transmission. This is the second time Truck Trend has conferred a PTOTY award, the Ford F-150 walking away with the silverware last year. The nod to the Sierra comes after sister publication Motor Trend named the 2016 Chevy Colorado with the Duramax diesel engine its Truck of the Year. The press release below has the details on how the accolade was won. GMC Sierra 1500 Denali Wins TRUCK TREND'S 2016 Pickup Truck of the Year AwardFirst-Class Amenities, 21st Century Technology, and Best-in-Class Power Lead GMC Sierra 1500 Denali to Best Field of SevenLOS ANGELES December 22, 2015—TRUCK TREND, the nation's premier light-truck authority, has selected the GMC Sierra 1500 Denali as the winner of its second annual Pickup Truck of the Year Award.TRUCK TREND's Pickup Truck of the Year award program is an invitation-only shootout that is only open to all-new or significantly revised pickup trucks for the upcoming model year. For 2016, the field of vehicles included seven entries from five companies and consisted of one variant from each company's eligible product line. This year's contenders included:- Chevrolet Silverado 1500 High Country- Chevrolet Colorado Z71- GMC Canyon SLT- GMC Sierra 1500 Denali- Nissan Titan XD Pro4X- Ram 1500 Rebel- Toyota Tacoma TRD Off-RoadTRUCK TREND's experts were immediately impressed with the Sierra Denali, which is focused on comfort, safety, and innovation.

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.