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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).

Baby Ford Ranger and electrified Dodge Challenger? | Autoblog Podcast #569

In this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Green Editor John Beltz Snyder. They address a couple interesting news topics, including an upcoming Ford pickup that's smaller than the Ranger, as well as a future electrified Dodge Challenger. They also opine about the new Honda Urban EV prototype that's scheduled to debut at the Geneva Motor Show. Then they talk about the cars they've been driving, including the new Subaru Crosstrek Hybrid, Volvo V60 and Audi A6. Finally, they take a question from Autoblog's recent Reddit AMA to help spend a Redditor's money. Autoblog Podcast #569 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 Focus-based pickup Electrified Dodge Challenger Honda Urban EV Cars we've been driving 2019 Subaru Crosstrek Hybrid 2019 Volvo V60 2019 Audi A6 Spend My Money Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video: Green Podcasts Audi Dodge Ford Honda Subaru Volvo Truck Coupe Crossover Hatchback Wagon Electric Hybrid Performance

Hot-selling Ford Expedition, Lincoln Navigator get production boost

Ford is investing an additional $25 million in its Kentucky Truck Plant in Louisville to increase by 25 percent production of the hot-selling and all-new Lincoln Navigator and Ford Expedition SUVs. The investment adds to $900 million in previously announced spending at the plant, which also builds F-Series Super-Duty pickups and employs 8,400 workers. Assembly-line workers are putting in overtime and working voluntary weekend shifts to keep up with demand. The new investment will cover upgrades to the assembly line but does not involve further hiring, Ford spokeswoman Kelli Felker says. The popularity of the Ford Expedition and Lincoln Navigator is a bright spot as Ford stock has been battered by Wall Street amid concerns concerns about the automaker's future vision and slowness to detect trends. Ford says the investment is an example of its bid to improve "operational fitness," one of CEO Jim Hackett's common refrains. Ford says Navigator retail sales more than doubled in January, and Navigators are spending an average of just seven days on Lincoln dealership lots as customers trade in vehicles including Land Rovers and Mercedes-Benz. Nearly 85 percent of buyers are opting for high-end Black Label and Reserve trim packages, contributing to an average transaction price increase of more than $21,000 in January compared to a year ago. The 2018 Navigator won the North American Truck of the Year award and also topped a Detroit News poll of public favorites at last month's Detroit Auto Show. Sales of the Expedition, meanwhile, were up almost 57 percent last month as the full-size SUVs also spent an average of just a week on dealer lots. Platinum trim models represented 29 percent of sales, pushing transaction price increases up $7,800. Ford gave the 2018 Expedition an all-aluminum body to save mass in its first significant redesign since 2007. The plant last year got nearly 400 new robots, mainly in the body shop, to help increase line speed, and Ford added a robot lab where employees can test software tweaks or troubleshoot issues away from the factory floor. The Louisville plant also benefits from extensive new data analytics, with seven big-screen monitors providing minute-by-minute updates showing progress against hourly targets or alerting workers to pending parts shortages. A huge spare-parts "vending machine" lets workers more quickly locate needed parts and keep inventory at necessary levels.