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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.

At meeting with automakers, Trump launches new attack on NAFTA

WASHINGTON — Ten American and foreign automakers went to the White House on Friday to push for a weakening of U.S. fuel efficiency standards through 2025, while President Donald Trump used the occasion to launch a fresh attack on the North American Free Trade Agreement that has benefited the companies. A draft proposal circulated by the U.S. Transportation Department would freeze fuel efficiency requirements at 2020 levels through 2026, rather than allowing them to increase as previously planned. Trump's administration is expected to formally unveil the proposal later this month or in June. "We're working on CAFE standards, environmental controls," Trump told reporters at the top of the meeting, referring to the Corporate Average Fuel Economy standards for cars and light trucks in the United States. Trump said he wants automakers to build more vehicles in the United States and export more vehicles. But much of the hour-long meeting focused on NAFTA. Trump blasted the pact involving the United States, Canada and Mexico as "terrible" and noted that negotiations to make changes sought by his administration were ongoing. "NAFTA has been a horrible, horrible disaster for this country and we'll see if we can make it reasonable," Trump said. Automakers have called NAFTA a success, allowing them to integrate production throughout North America and make production competitive with Asia and Europe, and have noted the increase in auto production over the past two decades with the deal in place. They have warned that changing NAFTA too much could prompt some companies to move production out of the United States. The chief executives of General Motors Co, Ford Motor Co, Fiat Chrysler, along with senior U.S. executives from Toyota Motor Corp, Volkswagen AG, Hyundai Motor Co, Nissan Motor Co, Honda Motor Co , BMW AG and Daimler AG met with Trump, as did the chief executives of two auto trade groups. Major automakers reiterated this week they do not support freezing fuel efficiency requirements but said they want new flexibility and rule changes to address lower gasoline prices and the shift in U.S. consumer preferences to bigger, less fuel-efficient vehicles.

Ford defends plan to shareholders: ‘We're simply reinventing the American car’

Ford's top executives took heat from shareholders over their plan to do away with sedans as we know them in Ford's North American lineup, as the company held its annual meeting Thursday. Critics said the plan to shelve the Fiesta, Focus and Taurus, reduce the Focus to one crossover model, and concentrate on high-margin trucks and SUVs was a shortsighted abandonment of entire market segments of affordable vehicles. "This doesn't mean we intend to lose those customers," Ford CEO Jim Hackett said. "We want to give them what they're telling us they really want. We're simply reinventing the American car." Ford has said SUVs/crossovers and pickups will constitute 90 percent of its North American lineup by 2020. And though only the Mustang and new Focus Active will remain, it plans to add new vehicles going forward that offer better fuel economy and utility, including EVs and hybrids. Hackett characterized the shift not as an abandonment of traditional cars but as a transformation of them. "We don't want anyone to think we're leaving anything," Hackett said. "We're just moving to a modern version. This is an exciting new generation of vehicles coming from Ford." It was Hackett's first annual meeting as CEO, and for the second year it was conducted online rather than in person. The change to Ford's lineup is part of Hackett's overall plan to cut $25.2 billion in costs by the year 2022. Executive Chairman Bill Ford Jr. blamed the negative reaction to the lineup plan on media coverage. "I wish the coverage had been a little different," he said. "If you got beyond the headline, you'll see we're adding to our product lineup and by 2020 we'll have the freshest showroom in the industry. The headlines look like Ford's retreating. In fact, nothing could be further from the truth." While Ford was clear about its plans for the Blue Oval, it has been less clear about the Lincoln brand. Hackett on Thursday said only that the Lincoln Continental, re-introduced just two years ago, would continue "through its life cycle" — but it has been such a slow seller that rumor has Ford killing the Continental again after that, and Hackett made no mention of a new generation. Presumably the MKZ sedan will go away when its twin the Ford Fusion does, but although Ford has outlined end dates for other models, the Fusion's departure is open-ended. The stock price has been a frustration for investors for years and has fallen 12 percent since the first of the year.

Ford's cars being held up in Chinese ports in trade tensions with U.S.

BEIJING — Ford Motor Co's imported vehicles are being held up at Chinese ports, three people with knowledge of the matter told Reuters, underscoring how U.S. goods are facing increased customs scrutiny in China amid a tense trade standoff. The three people said Ford and Lincoln vehicles were facing unusual delays at customs, with officials asking for extra technical checks. Two of the people said U.S.-made models of some German carmakers, mainly SUVs, being brought into China, were also affected. Ford was being asked to do extra checks on emission components, said a China-based Ford executive familiar with the matter, asking not be named because of the sensitivity of the issue. China's customs agency did not immediately respond to requests for comment. The holdups add to a growing list of American products facing issues at China's borders, as officials try to avert a full-blown trade war. Some trade experts said they believe Beijing is sending a defiant warning to Washington in response to sweeping U.S. trade demands made on China last week. Reuters reported Tuesday that China had ramped up inspections of pork shipped from the United States, after the country's customs agency said it would step up quarantine checks on American apples and logs. The second person, a China-based industry official with knowledge of the matter, said the delays for Ford — as well as some U.S.-made cars from BMW and Mercedes-Benz — had been going on for the last two weeks. "Customs pretends there are technical non-conformities of some nature that won't allow them to clear these U.S.-made cars through customs, but the U.S.-China trade frictions must be the background to this," he said. "Although no one will officially admit it." Responding to a request for comment from Reuters, a BMW spokesman said that "U.S.-made BMW cars have not been delayed at the ports as of last week and before." A Daimler spokeswoman said it was "monitoring the situation closely" regarding ongoing trade talks between China and the United States, but that she could not speculate further on other matters. The third person said the Ford issue, which had been noted by the United States government, and other holdups facing American goods, were clearly related to the trade dispute. A Ford spokeswoman in Shanghai when asked about the matter said: "We are closely monitoring our situation at the port." She declined to comment further.

Major automakers urge Trump not to freeze fuel economy targets

WASHINGTON — Major automakers are telling the Trump administration they want to reach an agreement with California to avoid a legal battle over fuel efficiency standards, and they support continued increases in mileage standards through 2025. "We support standards that increase year over year that also are consistent with marketplace realities," Mitch Bainwol, chief executive of the Alliance of Automobile Manufacturers, a trade group representing major automakers, will tell a U.S. House of Representatives panel on Tuesday, according to written testimony released on Monday. The Trump administration is weighing how to revise fuel economy standards through at least the 2025 model year, and one option is to propose freezing the standards through 2026, effectively allowing automakers to delay investments in technology to cut greenhouse gas emissions from burning petroleum. The National Highway Traffic Safety Administration has not formally submitted its joint proposal with the Environmental Protection Agency to the White House Office of Management and Budget for review. Even so, last week, California and 16 other states sued to challenge the Trump administration's decision to revise U.S. vehicle rules. Auto industry executives have held meetings with the Trump administration for months and have urged the administration to try to reach a deal with California even as they support slowing the pace of reduction in carbon dioxide emissions that the Obama administration rules outlined. One automaker official said part of the message to President Donald Trump at a meeting on Friday will be to consider California like a foreign trade deal that needs to be renegotiated. Automakers want to urge him to get automakers a "better deal" — as opposed to potentially years of litigation between major states and federal regulators. On Friday, Trump is set to meet with the chief executives of General Motors, Ford, Fiat Chrysler and the top U.S. executives of at least five other major automakers, including Toyota, Volkswagen AG and Daimler AG, to talk about revisions to the vehicle rules. Senior EPA and Transportation Department officials will also attend. Environmental groups are eager to keep the rules in place, saying they will save consumers billions in fuel costs. A coalition of groups plans to stage a protest outside Ford's headquarters in Michigan.

Jeep Wrangler and Mitsu PHEV driven, and Ford is up to something | Autoblog Podcast #539

On this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Green Editor John Beltz Snyder and Associate Editor Joel Stocksdale. We talk about driving the 2018 Jeep Wrangler and Mitsubishi Outlander PHEV we had at our office. We speculate about the Ford Maverick and Michigan Central Station, talk Porsche Cayenne E-Hybrid news, and help spend a listener's money on a pair of vehicles. Autoblog Podcast #539 Your browser does not support the audio element. Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Cars in the office: Jeep Wrangler and Mitsubishi Outlander PHEV Ford trademarks Maverick and Timberline Ford to buy Michigan Central Station? Porsche Cayenne E-Hybrid details Spend my money Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Green Podcasts Rumormill Ford Jeep Mitsubishi Porsche Car Buying Used Car Buying Crossover SUV Electric Hybrid Luxury Off-Road Vehicles michigan central station

Truck Week, Jeep Grand Commander, and RIP Ford sedans | Autoblog Podcast #538

On this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Green Editor John Beltz Snyder and Associate Editor Joel Stocksdale. We talk about driving the 2018 Ford F-150 and 2019 Ram 1500 Tradesman we have at the office this week. We discuss Ford discontinuing most of its cars, salute the Jeep Grand Commander, and reminisce about our favorite car toys. As usual, we'll also spend a listener's money on a car. Autoblog Podcast #538 Your browser does not support the audio element. Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Ford kills off all cars but Mustang and Focus Active Jeep debuts three-row Grand Commander at Beijing Motor Show Trucks in the office: Ford F-150 and Ram 1500 Tradesman Our favorite car toys Spend my money Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Podcasts Toys/Games Beijing Motor Show Ford Jeep RAM Car Buying Truck SUV Sedan ram 1500 tradesman

Ford to ramp up Lincoln rollout in China in bid to catch rivals

DETROIT/BEIJING — Ford Motor Co's premium Lincoln brand plans to build as many as five new vehicles in China by 2022, according to two U.S. sources, in a move to expand sales in the world's largest vehicle market that would also blunt the impact of trade U.S.-China trade spats. Ford has said it plans to build an all-new sport utility vehicle in China by the end of 2019, however the company has not detailed future production plans for the Lincoln brand in China beyond that. "Our localization plans to support the China market are on track and will serve to further drive Lincoln's growth in China," Lincoln spokeswoman Angie Kozleski said. "Beyond that, it would be premature to discuss our future product and production plans or timing." Sources familiar with Ford's production plans told Reuters the automaker now expects to begin building the new Lincoln Aviator in China in late 2019 or early 2020, along with replacements for the MKC compact crossover and the MKZ midsize sedan, followed in 2021 by the all-new Nautilus, which replaces the Lincoln MKX crossover. A fifth model, a small coupe-like crossover, is tentatively slated for production in China in 2022, the sources said. Ford has much to lose if the war of words over trade between China and U.S. President Donald Trump escalates into a full-blown tariff war. Last year, it shipped about 80,000 vehicles to China from North America, more than half of them Lincolns to support the brand's growth. All Lincoln vehicles that Ford now sells in China are brought in from North America. Even if China does reduce its 25 percent tariff on imported vehicles - as Chinese President Xi Jinping promised on Tuesday - it is not clear that would mean a big, long-term increase in Fords and Lincolns made in U.S. factories heading to Chinese showrooms. Ford is pursuing long-range plans to build more vehicles in China to serve a market that is now roughly 60 percent larger than the U.S. market, and projected to keep growing. But it is playing catch up to hometown rival General Motors Co and German luxury brands including Audi, BMW and Mercedes-Benz, which have invested heavily in Chinese production in recent years as a form of insurance against trade, political and currency gyrations and to lower price points for their premium cars.

Sunday Drive: Big debuts from the Big Apple dominated the headlines

New York Auto Show week has come and gone, and, not surprisingly, the week's biggest bits of news came from the halls of the Jacob K. Javits Convention Center in NYC. Our favorite debut from New York was the Lincoln Aviator, a sharp-dresses crossover that looks lovely inside and out, and sits on underpinnings at least partly derived from the Ford Mustang. While the Aviator may have caught our attention, it wasn't the most popular vehicle debut from New York, at least when judging by the number of page views here on Autoblog. That distinction goes to the 2019 Toyota RAV4, and we're hardly surprised. The RAV4 is the most popular compact crossover in America (in fact it's the most popular vehicle that isn't a pickup truck), and the 2019 version looks like a radical departure from the model that came before. We can't wait to drive the thing. Midsize sedans may not be the darling of the family car set, that honor taken over by the aforementioned crossover, but they still sell in large enough numbers that a brand-new model catches our attention. Such is the case with the 2019 Nissan Altima. We broke down the specs of the Altima and compared Nissan's bread-and-butter sedan with its biggest rivals. And finally, we got some official figures for the 2019 Ford Mustang Bullitt. It'll cost a cool $12,000 over the cost of a Mustang GT, and will benefit from a 480-horsepower, 420-pound-foot version of Ford's excellent 5.0-liter V8 engine. As always, stay tuned this week for all the latest automotive news that's fit to print. 2018 New York Auto Show Mega Photo Gallery | Start spreading the news 2019 Toyota RAV4 actually looks pretty cool 2019 Nissan Altima vs Honda Accord vs Toyota Camry: How they compare 2019 Mustang Bullitt orders open as Ford reveals price and horsepower Image Credit: Drew Angerer/Getty New York Auto Show Ford Lincoln Nissan Toyota Coupe Crossover SUV Sedan 2018 new york auto show

Mustang parts under the new Lincoln Aviator mean good things for Ford

NEW YORK — As we mentioned last night, underneath the new Lincoln Aviator "concept" there appears to be an independent rear suspension lifted right from the Ford Mustang parts bin. And while it's pretty cool on its face that Mustang rear-drive platform bits are being reused in the broader Ford universe, what this means for the next Explorer could be really cool. A quick caveat: The Aviator here in New York is very close to the production version, but it's not technically a production car. It looks hand-built, with temporary exhaust and some show-car touches. The suspension underneath looks exactly like a Mustang's, but the actual production Aviator will almost certainly use beefier components with the same basic design and geometry, since the Aviator will be much heavier than the smaller Mustang. That being said, we're fairly confident that even at this early stage, the Mustang-derived suspension seen in New York is a preview of what'll be under the production Aviator. Furthermore, Ford won't say it, but based on what we're seeing on Aviator, it's a safe bet that Ford will utilize the Aviator platform for the next Explorer. That would enable the economies of scale necessary to produce a brand new rear-drive-based SUV platform in the first place. It also means that the Explorer should be available without AWD — and given the stable of powerful EcoBoost engines, and the competent 10-speed automatic in the parts bin, a rear-drive Explorer has a shot at being a decent driver. Aviator wouldn't go rear-drive-based if driving dynamics weren't important; Explorer should inherit these priorities. More evidence: The Explorer spy shots we saw back in February sure share the Aviator's general proportions. Even back then, before Aviator was revealed, we were hypothesizing that an EcoBoost 3.5-liter-powered version could boast as much as 400 horsepower, if the Expedition's tune were adopted. Suddenly, the Explorer seems very interesting. So, an EcoBoost, rear-drive Explorer sure sounds like something Ford Performance would be interested in, right? We knew an Explorer ST is coming, but with 365-400 horsepower potential and a chassis designed with dynamics in mind, it doesn't seem like as much of a stretch as the Edge ST. And a performance-oriented AWD system is a possibility, too. That's an area where Ford has been gathering experience at a rapid pace. What do we not expect from a new Explorer? A V8.