Analysts and industry observers expect scorching competition between the big Detroit three when it comes to sharing the earnings rich full-size pickup truck segment.
General Motors, through its Chevrolet and GMC brands, together with Chrysler’s Ram are expected to intensify their incentive spending in a move to further snatch market share from industry leader Ford. The two automakers have an auspicious time frame, as the pickup leader has decreased production of the 2014 F-150 as it prepares the introduction of the all-new aluminum intensive 2015 model year – the thirteenth generation for the model that has led pickup sales for more than four decades.
Bill Rinna, LMC Automotive senior manager of North American forecasts says the two companies will further eat away their earnings margins as they speed up the incentive offerings on full size pickups to lure away Ford clients. That means buyers who don’t want to wait the new F-150 will get very good deals during this fall, a period known for pickup sales growth.
Ford stopped production at its Dearborn truck plant for several weeks to rebuild it for the different assembly process of the new 2015 F-150 and it also wants to do the same at the Kansas City facility in 2015. The automaker predicts a sales loss of up to 90,000 F-150 pickups during the period.