No vehicle segment has more impact on Detroit’s Big Three automakers as the full-size pickup does. The good news for Ford Motor Company (NYSE:F), General Motors Company (NYSE:GM) and Chrysler is that they continue to watch their sales rebound from the depths of the recession. A rising tide raises all boats, and in this case we’re seeing a perfect storm of factors that look to keep pickup sales – and their respective automakers’ profits – very strong. I’ll cover those factors, and show you just how strong the sales came in for June.
If you break down last year’s numbers, Ford Motor Company (NYSE:F)’s F-Series was the leader in the full-size segment, owning 38.5% of the market with its crosstown rival General Motors Company (NYSE:GM) coming in at 35.5% (a combination of its Silverado and Sierra sales). Chrysler’s Ram came in third at a respectable 17.5%. That adds up to Detroit owning nearly 92% of the most profitable segment in the U.S. which produced our nation’s two top-selling vehicles – the F-Series and Silverado.
To put in perspective how important this segment is, let me remind you that full-size pickups are estimated to bring in as much as 60% of Detroit automakers’ profits. While the automakers are trying to lessen their dependence on the segment, they can enjoy the surge in sales for now. The good news is that there is still plenty of room for optimism and growth.
Using the first half of the year in sales to project the second half, we can see that Detroit looks to continue its rebound in sales. Ford Motor Company (NYSE:F) is outpacing the growth, yet that is something General Motors Company (NYSE:GM) hopes to change as sales of its redesigned 2014 Silverado strengthen.
In June, Ford Motor Company (NYSE:F)’s F-Series posted sales of 68,009 trucks, which was an impressive 23.6% gain over last year, and Ford Motor Company (NYSE:F) is up 22% for the year – remaining America’s best-selling truck and vehicle.
Last month, General Motors Company (NYSE:GM)’s Silverado sales increased 28.9% to hit 43,259 trucks sold, still trailing the F-Series by nearly 25,000 for June alone. The GMC Sierra also had a nice 32.8% increase over last June, recording 16,568 in sales.