Despite the U.S. auto industry celebrating huge sales wins in the first quarter, a key segment containing some of the Detroit Big Three's most profitable nameplates is being left in the dust.
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As per a recent report by Automotive News, sales of full-size pickup trucks fell 4% year over year in the period between January and March 2024, with key models reporting reduced sales figures in the double digits.
Stellantis' (STLA) reported that its popular Ram 1500 took a sales hit of 15%, while Ford (F) reported that sales of its bestselling F-series line of pickups took a hit of 10%. On the other hand, General Motors (GM) reported overall sales gains of 2.4% with its Chevrolet Silverado and 2.1% with its GMC Sierra pickups thanks to heavy duty models, but sales of its light duty full-size models are down 1.2%.
Besides GM, Nissan (NSANF) was the only other automaker to sell more pickups this period than the same time in 2023. In total, pickup sales are down 6.4%, including a 31% drop for midsize models like the Ford Ranger and GM's Chevrolet Colorado.
Insiders, analysts and those in the know say that the high prices of cars, as well as high interest rates are causing consumers to cut back on their discretionary spending and explore smaller and cheaper options. As sales of full-size pickups dropped, compact pickups like Ford's hybrid Maverick pickup rose by 82%, while compact and subcompact crossovers rose roughly 25%.
In recent years, automakers like Detroit's Big Three have transformed pickup trucks from utilitarian workhorses into premium machines with MSRPs that rivaled luxury marques like Mercedes-Benz. In a statement to AutoNews, Cox Automotive senior economist Charlie Chesbrough noted that the high prices well equipped pickup's, as well as the slowdown of construction have affected the growth of the segment.
"Pickups have run into two hurdles — interest rates and high prices are having a negative impact directly on affordability and the slowdown in construction is likely impacting demand," Chesbrough told AutoNews. "We don't feel there is much pent-up demand remaining in fleet. Additional growth [in] the full-size pickup segment will be challenging over the near term. Buyers appear to want pickup functionality, but at lower prices."
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Additionally, Edmunds head of insights Jessica Caldwell noted that low interest rates during the COVID-19 pandemic allowed for buyers to opt for more expensive vehicles, such as premium trims of pickups like the Ford F-150 Platinum and the Chevrolet Silverado High Country.
She told AutoNews that consumers aren't "stretching their budgets in ways that they would have in the past," and that higher interest rates makes "financing these larger purchases really hard."
According to GlobalData, full-size pickups accounted for 12.4% of new car sales for the first quarter of 2024, compared to 13.7% during the same period in 2023.
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