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I'm the Pickups host here at Edmunds CarSpace.com - be sure to check out the Pickups forums if you have or are interested in one!

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November 2009

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The Big Rigs

We're gonna talk about the big ones... trucks and buses that require those 3 marker lights front and rear. Everything from dual rear wheel pickups to class 8 trucks to the bus that takes you to work.

Oct 31, 2009 - What's been happening?

Sorry to have been so long since the last entry... been a wild year for me.

Let's see, what's been going on?

Well, my friend Vikki who piloted the red Peterbilt in the left margin has opted from the trucking ranks.  That Pete spent too much time in her driveway and not enough on the highway.  And when you're paid by the mile, that isn't gonna cut it, even for a company driver.  So she returned the rig to headquarters this summer and has gone on to other work, although she is keeping her CDL just in case.

I stayed away from commenting on the Chrysler and GM bankruptcies (at least here -- I did comment elsewhere at Edmunds), but since they're out and re-establishing themselves, I will say this much... I think Chrysler under Marchionne has a far better chance than GM under Henderson.  GM still has too many layers, too many executives from the past, and they are still trying to live on the old mantra of "as GM goes, so goes America."  News flash, GM... America moved on without you a while ago.  Marchionne assumed control of Chrylser to find a company that had not begun development of anything smaller than the next 300/Charger in nearly 3 years.  But unlike the old multi-layered management structure of decision makers, Marchionne put in place a culture of fast action.  He gave the design and engineering teams just 18 months to refresh the Avenger and Sebring - normally a 36 month project - which will get freshened product into the mainstream until the fully redesigned models on Fiat platforms can be implemented.  GM has tried to look "lean" by dropping or selling brands, while they hang their hopes on a $40K electric compact.  Yeah, that'll work.

Getting back to trucks, the 2010 Ram HD models are in production, the 2011 Ford Super Duty line was revealed in September for a winter start-up (somewhere around February 2010), and GM...  oh yeah, remember them from the above paragraph...  will hope that their production stock holds up because between January and March, they will be unable to produce any HD diesel engines.  The Cummins used by Dodge was 2010-legal back in 2007.  Ford is changing engine suppliers from International to in-house, so they can be up to speed with new engine prouction when the old engines run out.  But GM has to shut down the Duramax plant and retool in order to make their 2010-legal engine - which means if a Chevy or GMC dealer doesn't have the HD pickup someone wants in stock, they're going to go to a Dodge or Ford dealer with the ability to custom-order the truck that meets their needs.  Way to plan, GM.

As for the 2010 Ram vs the 2011 Super Duty...  the 2010 Ram is a brand new body on a proven chassis with a proven powertain.  The 2011 SD is a new front clip on a proven chassis (the cab and bed have been unchanged since the Super Duty line was introduced in January 1998 as early 99 models) and a completely new engine and transmission.  Leem tell ya - in the world of trucks from class 2 and up, no one minds a new body if they trust the metal underneath.  This will be Ford's third new engine launch in 6 years... and Dearborn better hope they get this one right, becauise the 6.0 and 6.4 Internationals hit the streets with lots of documented problems.

Could be the perfect storm that allows Chrysler to generate badly needed revenue until all the new cars are  ready.  Stay tuned.

3:55 pm | Categories: trucks, diesel, dodge ram, new design, vehicle sales, ford f-series, gm, ford, chrysler
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Oct 12, 2008 - GM and Chrysler?

What could GM possibly want with Chrysler?

They could use Jeep to replace Hummer as the "off-road brand", they could use the Charger and 300 to replace the Impala and LaCrosse, and they'd finally get a minivan people want.

That's it.


Everything else Chrysler makes is duplicated by an existing GM vehicle (and in the case of cars other than the Charger/300/Challenger, better executed).

The Viper would be history, as would Dodge truck - GM isn't sure what to do with GMC as it is, why add another truck line that shares no parts?  The 300 would be sent over to Pontiac-Buick-GMC, likely as a Buick, and it might even kill off the G8 (which would save GM a ton of money in shipping costs from Australia).  GM would take the Camaro over the Challenger out of brand loyalty (which is a shame since the Challenger is a better performance car).

In the end, it would be the same thing as when Chrysler bought AMC... keep the Jeep brand, some of the better assembly plants, and phase everything else out in a couple of years.

If Chrysler really must be sold/merged, I would think Renault/Nissan is the better fit - which leads to a similar irony... Renault took control of AMC before selling it to Chrysler.

10:20 am | Categories: gm, chrysler
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Oct 6, 2008 - How the mighty have fallen, part 4

The late arrival to the party could very well be wondering why they bothered.

Jim Lentz, president of Toyota Motor Sales USA was quoted in Automotive News last week from the Paris Auto Show regarding the company's outlook on the Tundra.  Lentz noted that Toyota does not want to get caught in the Ford F-Series vs Chevy Silverado war for first place in sales, or market against the all-new Dodge Ram 1500 or Ford F150.  He acknowledged that many of the former buyers of pickups - commuters and those who wanted the "image" - have left the market for more fuel efficient vehicles (aka, cars) and likely won't return.

Toyota expected to sell 20,000 units per month after a fairly successful launch year, but their September 2008 sales were a dismal 7696, down over 60 percent from the September 2007 tally.

The Indiana Tundra plant was downed completely, and the Texas plant is in the midst of a three-month "extended vacation" to clear inventory.  Lentz also noted that the diesel engine for the Tundra is now on hold, as their current volume is not enough to justify the investment.

The redesigned Tundra certainly was a worthy entry into what had been considered the final stronghold of the Big 3.  At times last year, the Tundra looked like it could pass the GMC Sierra for 4th place among full-size pickups - a feat that would have been more impressive considering the Tundra is just a half-ton while the Sierra is a full line.  Instead, the Tundra has dropped to not much more than what the Nissan Titan was selling a year ago.

There's one last introduction in the segment...  and the one that is most interesting to me.  The new Dodge Ram HD is supposed to be shwon this winter (probably at NAIAS in January), and as the owner of two straight Ram 3500s, I'll certainly be interested as to whether I will shell out the bucks for the next one, or will I hang on to my 2005 a bit longer than planned.

9:50 am | Categories: trucks, dodge ram, ford f150, vehicle sales, gm, toyota tundra
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Jun 30, 2008 - How the mighty have fallen, part 3

Can't leave Chrysler out.  Today, the Pentastar announced they will close St. Louis South (minivan plant) and cut St. Louis North (Dodge Ram plant) to just one shift.  Chrysler has ridden the minivans and Rams for nearly 15 years - for a period time, both plants were open daily with multiple shifts.

This is not great news, considering the minivans were redesigned for 2008, the new Ram 1500 debuts this fall, and the new Ram 2500/3500 will likely be shown to the public at NAIAS next January.

And to update Pare 2, GM stocks traded today briefly at $10.57 - the lowest split-adjusted price for General Motors common stock since September 22, 1954 when it traded at $10.49.

4:03 pm | Categories: new design, gm, chrysler
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Jun 26, 2008 - How the mighty have fallen, part 2

GM's stock closed today (June 26) at its lowest (adjusted for splits) price since late 1974... ironically another time of oil turmoil in the US.  Two years later, the downsizing began with the full-size (B-body) cars.  Analysts note that GM won't reap the health-benefit savings from the new UAW contract until 2009.  Some are even calling for GM to be removed from the Dow Jones Industrial Average, despite their billions in annual revenue - GM is currently the lowest valued company of the 30 DJIA stocks (Alcoa at #29 is 4 times GM's valuation).

Will this lead to another drastic change at GM like the downsizing of the 70s and early 80s?  Will they back off on "consumer trucks" and leave the Silverado/Sierra derivatives to the hardcore truck users who actually need them?  Only time will tell.

3:31 pm | Categories: gm
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