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Pick-up Truck: Smooth Drive for Automakers on a Rough Road

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There has been a distinct shift in the Americans’ choice of vehicles. They now enthusiastically yearn for the pick-up trucks. This situation has in turn prompted a number of car makers to unveil new models in their pick-up truck segment.

Per Kelley Blue Book, the country has witnessed a 4.8% rise to 2.69 million unit sale of pick-up trucks in 2017. This increased inclination in the U.S. citizens toward spacious trucks with features of high-end sedans and crossovers has encouraged automakers to develop newer, better and luxurious truck models. Additionally, favorable features such as better fuel efficiency and availability at low costs make pick-up trucks a smart option for customers’ purchase.

Also, launching newer models with comfortable design packages per customer requirements has been a profitable deal for automobile manufacturers. Revenues generated from vehicles under the pick-up truck segment have turned out to be automakers’ bread and butter in period of low sales in other categories.

Moreover, earnings from these tried-and-tested pickup models enable automakers to pay their bills and also invest in the futuristic advancement of self-driving technology as well as sophisticated electric vehicles.

2018 Expectations & Launches

Notably, in 2018, these pick-up trucks are estimated to be more prominent in the consumer market. Accordingly, at the ongoing Detroit auto show, a few companies have already introduced their new pick-up truck models, likely to be available through dealerships by this year-end. Let’s sneak a peek into these truck launches to determine the impact in the pick-up truck segment.

On Jan 13, General Motors Company (GM - Free Report) unveiled its all-new Chevrolet Silverado pickup model with eight different trim levels, two new V-8 engines and weighing 450 pounds less than the current edition to save fuel. This marks the first complete redesigning of the truck since the 2007 model year.

In 2017, Silverado was the second best-selling light vehicle in the United States and is the most important product under General Motors’ Chevrolet portfolio.

Another Detroit-based automaker Ford Motor Company (F - Free Report) unwrapped its Ranger midsize pick-up truck namely, North American Ranger. The mid-size pickup made its first comeback after its production got discontinued in 2011. The new model will comprise a turbocharged engine option and 10-speed transmission.

Scheduled to find space in showrooms by early 2019, the model will be assembled at its factory in Wayne, MI.

At the same show, two days later, Fiat Chrysler Automobiles N.V. unpacked its 2019 model year Ram 1500, the flagship model of its Ram brand. Weighing half a ton, the version is equipped with a bouquet of technological features. Few among these are a 360-degree camera that provides a bird’s-eye view of vehicle and an array of advanced driver assistance features with adaptive cruise control as well as forward collision warning.

Apart from these new offerings, Nissan Motor Company (NSANY - Free Report) is anticipated to roll out a new and improved version of its Frontier model in 2018 with completely re-designed interior and exterior alongside the latest safety and driver assistance technologies.

While Fiat Chrysler and Ford have a Zacks Rank #2 (Buy), General Motors a Zacks Rank# 3 (Hold) and Nissan a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term growth rate for Fiat Chrysler, Ford, General Motors and Nissan is 19.1%, 10.7%, 9.3%, 4.3%, respectively.

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