A Greater Share Of A Shrinking Pie?

One segment of the automotive market getting particularly hammered right now are large pickup trucks, manly beasts that don’t exactly sip fuel. GMC/Chevrolet, Ford, Dodge, Nissan, and Toyota field their own models and each manufacturer is seeing double-digit sales declines year-over-year.

Still, if you are a plumber, electrician, roofer, or other contractor you know that big pick up trucks are the lifeline of your business. Hauling crew and materials, only the biggest vehicles can get the work done.

For the 2009 model year, both Ford and Dodge are releasing the next generation of their respective F-Series and Ram models. Five years have gone by since their last updates and both companies are on schedule.

Unfortunately, gas prices are headed to over $4 per gallon on the eve of their releases.

Still, Chrysler is bullish on the new model expecting the company to grab a bigger piece of the segment pie. Trouble is, the pie has shrunk and the Ram’s year-over-year sales will continue to decline; the Ram series is Chrysler’s best selling model.

If Chrysler is able to hang on for a few years by maintaining or increasing market share for the Ram, the following scenario could improve the company’s long term picture:

  • Nissan follows through with its agreement with Chrysler (made earlier this year) to use the Ram platform to build the next generation Titan truck.
  • Toyota abandons the full-size truck market, deciding to concentrate on smaller trucks and everything else that it does best. The Tundra is a late-comer to the game, perhaps Toyota will see the light and quit.
  • Ford and GMC/Chevrolet aren’t going anywhere with their trucks, but Dodge will be satisfied with a strong #3 position.

High gas prices are making predicting the future difficult, but with diesel models available, the Dodge Ram is still an important option for people who need big trucks.

(Source: The Wall Street Journal)

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