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Truckmakers squabbling over who can sell Jimmy Fallon a pickup

Snagging a celebrity endorsement is a big deal for automakers, as evidenced by the recent efforts of the Detroit Three to try and woo The Tonight Show's newest host, Jimmy Fallon, into one of their trucks.
After announcing during Wednesday night's show that he was in the market for a pickup truck, Fallon set off a firestorm of efforts on Twitter, with both Ford and Chevrolet petitioning the funnyman to test out a truck. According to Ad Age, Ford recommended the King Ranch edition of its next-generation F-150 while the show was still airing. Chevy, meanwhile, waited until the next morning to pitch a Silverado to Fallon.
The winner of this social media feeding frenzy, though, was Ram. Promoting a variation of its "Guts, Glory, Ram" tagline, the Auburn Hills-based manufacturer created the hashtag #GUTSGLORYFallon. It even went so far as to park a Ram 1500 outside 30 Rockefeller Center in New York, where The Tonight Show is filmed. On the back of the Ram sat a sign, reading "Big enough, Jimmy? Test it out," referencing a joke from the Wednesday show.

Buy Ford and GM stock and make 5%

Want to make a five-percent return when 10-year treasuries are paying around two percent? Ford (F) and General Motors (GM) have solid balance sheets, strong cash flow, solid earnings, and growing markets. By all accounts, they are smart investments. But the market is down on these stocks. Why? Some of the stupid excuses include: They are cyclical companies The Detroit 3 have lost 3.5 million in sales since 2000 The world economy is shaky GM recently filed for bankruptcy Their markets have peaked They haven't changed their ways Let's take these criticisms one by one: They Are Cyclical Companies Yes, they are cyclical. Every company is cyclical. Every industry is cyclical. Some more than others, but not every company is immune from swings in the market. Banks used to be 'non-cyclical' leader, not anymore. Airline stocks are just as cyclical as auto stocks, yet they are trading at multiples greater than the auto industry. Why? And what accounts for the irrational stock price for Tesla (TSLA)? At least Ford (F) and General Motors (GM) make money and have positive cash flows. In fact, both companies have a net positive cash position. They have more cash on hand than liabilities. Auto sales in the United States hit a record 17.5 million vehicles in 2015. During the Great Recession, Ford (F) and General Motors (GM) cut their break even points to 10 million vehicles per year. Anything above an annual U.S. volume of 10 million vehicles is profit. And what a profit they make. Sales of Ford's F-150 continues to be the best-selling vehicle in the United States for over 30 years. Detroit 3 Have Lost 3.5 million in Sales Since 2000 Automotive News reports General Motors (GM), Ford (F) and Chrysler (FCA) have lost a combined 3.5 million vehicles sales since 2000. So how can they be making more money? Two big reasons – Fleet Sales and the UAW. Fleet Sales The Detroit 3 used to own car rental companies to keep their factories running. Ford owned Hertz (HTZ), General Motors owned all of National Car Rental and 29 percent of Avis, and Chrysler, the forerunner to Fiat Chrysler (FCA), used to own Thrifty Car Rental and Dollar Rent-A-Car. The Detroit 3 owned these rental companies to have a place to sell their bad product and keep their factories running. These were low margin sales, and in many cases, were money losers for the Detroit 3. They no longer own auto rental companies.

Ford F-150 production hampered by frame shortage

If anyone has questions about how Ford's new aluminum-bodied F-150 will hold up, it's not buyers. Orders are so strong for the fullsize pickup that competitors General Motors and Ram are discounting their offerings to hold onto market share. It's a shame for the Blue Oval then, that it can't build all the trucks it needs because frame supplier Metalsa isn't delivering enough frames. Neither Ford nor Metalsa has said what the problem is, but Ford employees are at Metalsa's Kentucky plant trying to get it sorted out, Automotive News reports. Overtime shifts at the Dearborn Truck Plant and the Kansas City Assembly Plant have been canceled due to the shortage that's been a problem for at least two months now. The issue is exacerbated by this being the changeover period in production from the old model to the new, which comes with its own issues. That would help explain why even though Dearborn production finished ramping up in January, output in April was down 9.2 percent compared to last year, according to AN. Transaction prices are up for the new truck, but overall F-150 production in Q1 was down 40 percent, and missing product means missing profits. Combined with the production drop for the new Ford Edge, the company's Q1 bottom line was robbed of $1 billion. It isn't clear when the frame issue will be solved, but workers at the plants are ready to run "all-out" when it is. Related Video: News Source: Automotive News - sub. req.Image Credit: Copyright 2015 Drew Phillips / AOL Plants/Manufacturing Ford Truck kansas city assembly plant