Fortune
GM, Ford and Chrysler sell more pickups than do they anything else, more than two million a year in good times.
..the sales data reported May 1 that pickup trucks have hit the skids is seriously bad news... Without these reliable profit generators, the business model for domestic auto producers in North American doesn't work. Passenger cars, under ferocious foreign assault, are a breakeven proposition at best and sales of formerly lucrative SUVs are falling faster than Spider-Man without his web.
For General Motors...the drop is a cruel blow to its plans to turn around North American operations - and may force it to scale back its assumptions about the business going forward. Despite incentives of up to $2,000 per unit, Silverado sales fell 7.2 percent in April.
Ford is fighting to protect the F-series with a new advertising campaign touting its durability in crash tests. But the collapse in the showroom digs an even deeper hole for the automaker. F-series sales are down 13.7 percent so far in 2007. At up-for-sale Chrysler, meanwhile, Dodge Ram sales are holding steady but only thanks to incentives that climb as high as $5,000 per vehicle...