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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).

GM already raising prices on 2014 Silverado and Sierra pickups

General Motors must be pretty pleased with sales of its two newest pickups, the GMC Sierra and Chevrolet Silverado, as it's announced price hikes for both models, as part of a planned price tweak.
Prices will be bumped by as much as $1,500, although weirdly, they'll be offset by as much as $1,500 in cash-back offers through the end of October. Fox Business reports that GM spokesman Jim Cain said of the price hike, "With the sell down of the '13 models nearly complete, this price adjustment was planned and is a normal part of business."
The move, as Fox is quick to point out, is an interesting one, as sales of the twin pickups struggled last month relative to the Ford F-Series, while both of GM's crosstown competitors have been aggressively undercutting Silverado and Sierra prices. The F-150 starts at $24,070 and the Ram 1500 comes in at $23,600, not counting any cash on the hood. A base Silverado, meanwhile, retails at $25,575.

After Years Of Delays, Rear Visibility Requirements Move Closer To Reality

Regulations that would require automakers to improve rear-view visibility on all new cars and light trucks are nearing completion after six years of delays. The U.S. Department of Transportation sent its proposed rear-visibility rules to the Obama administration for review on Christmas Day. The White House Office of Management and Budget now must finalize the regulations. The rule are intended to minimize the risk of pedestrian deaths from vehicles in reverse, a type of accident that disproportionately affects children. Already in 2014, two children have died from cars backing over them, driven in each case by the children's father. Specifics of the Transportation Department's proposal are not available during the review, but the rules are expected to compel automakers to install rear-view cameras as mandatory equipment on all new vehicles. That's what safety advocates have wanted all along. Thought they were pleased the proposed ruling had finally been issued, there was some worry Friday the final rules would omit the rear-view camera mandate. "We're encouraged, but we're also a little concerned about speculation the rear-view camera may not be in there," said Janette Fennell, the president and founder of Kids and Cars, a nonprofit organization dedicated to protecting children in and around vehicles. "I'm wondering where that might be coming from." On Thursday, The Automotive News had reported the possibility the new standards could offer an alternative to rear-view cameras, such as redesigned mirrors, that improved visibility. The Office of Management and Budget typically completes its reviews of new rules in 90 days, although that can be extended. OMB officials said Friday they do not comment on pending rules. The intent of the rules is to enhance rear visibility for drivers and prevent pedestrian deaths. Approximately 200 pedestrians are backed over in the United States each year, according to estimates from the National Highway Traffic Safety Administration. Accidents Mostly Affect Children Roughly half the victims are children younger than age five. A government analysis concluded approximately half the victims -– 95 to 112 -– could be saved with new regulations. Yet the rules have arrived at a glacial pace. President George W. Bush signed legislation that had been passed with bipartisan Congressional support in 2008. But automakers have fought the idea of adding rear-view cameras, saying it is too expensive.