Pickup sales dive in February
Ram, Silverado, Sierra deliveries decline by at least 15%
General Motors and Fiat Chrysler Automobiles reported hefty sales declines for their big trucks, a troubling sign for a lucrative segment that had been holding up well as the broader U.S. auto market shrinks.
Deliveries of Fiat Chrysler’s Ram pickup and GM’s Chevrolet Silverado and GMC Sierra trucks each fell by at least 15 percent in February. While the industryleading F-Series line bucked the trend with a small increase, Ford’s total sales still missed estimates.
Detroit’s pickups are some of the auto industry’s most profitable model lines, commanding average prices exceeding $40,000. The tepid demand for trucks — which consistently rank among the top-sellers in the U.S. market — was a major contributor to total deliveries potentially slowing down last month to the most sluggish pace since Hurricane Harvey ravaged dealerships across the Texas Gulf Coast in August.
“It’s looking like it was a challenging month,” said Jeff Schuster, senior vice president of forecasting for LMC Automotive. “It’s a continued, steady softening of the market.”
Most major carmakers fell short of expectations and posted steeper decreases than analysts were projecting. The annualized rate of sales, adjusted for seasonal
trends, probably slowed to 16.9 million cars and light trucks last month, according to a Bloomberg News survey. That would be down from 17.5 million a year earlier.
“This year is going to be a bitter but necessary pill for the auto industry to swallow,” said Jessica Caldwell, executive director of industry analysis at Edmunds. “The industry is still in a fairly healthy place, but it may not feel like it since the last few years have been in record territory.”
The weak month for GM and Fiat Chrysler’s pickups
may have come as a surprise. Brian Johnson, a Barclays analyst, last month projected that large trucks’ share of total U.S. sales will rise to 13.7 percent in 2018, from 13.3 percent last year, as a stronger economy and small-business tax overhaul help buoy bigvehicle demand.
GM shares slumped by 3.6 percent, while Fiat Chrysler declined 2.8 percent and Ford dropped 2.6 percent in New York trading.
GM and Fiat Chrysler are both overhauling their pickups this year, though neither of the companies’ redesigned models have arrived yet in showrooms. The Chevrolet Silverado will boast eight different
trim levels, two new V-8 engines and shed as much as 450 pounds from the current model to save fuel.
The Ram 1500 will drop about 225 pounds, even as it gets longer and wider, and executives have said mileage should improve by about 10 percent. The Ram brand’s rough showing was explained in part by cutting back on deliveries to fleet customers by 44 percent last month. Lightduty pickup sales to retail buyers gained and set a record for February.
Toyota was the only Japanese automaker to beat estimates and is the lone major carmaker to have reported a total sales increase from a
year ago. Deliveries jumped last month for the two topsellers in the company’s lineup, the Camry sedan and RAV4 crossover.
Nissan missed estimates, with sales dropping 4.3 percent. While Titan deliveries climbed, the truck remains a small player in both the company’s own lineup and within the broader pickup market. Altima sedan deliveries, on the other hand, fell 26 percent.
Honda posted a 5 percent decline as Accord sedan and CR-V crossover sales slumped.