As full-size pickup trucks increase in popularity, their price tags are also going through the roof.
They used to be the working man’s vehicle of choice but now you can order them with everything from leather seats to uber premium audio systems and countless other hi-tech gizmos. Pickup trucks have always been popular in the US and by the same token have represented a good chunk of automakers’ profits. And profited from them they have in very recent years. A new report is claiming that since 2005 large pickups, even some heavy-duty models, have increased in price from around $31,000 to roughly $40,000.
That’s an eight percent bump after adjusting for inflation. But here’s the thing: those truck profits are allowing automakers, specifically the Big Three, to finally invest in areas such as improved vehicle quality on par with Japanese brands and the development of competitive new models. For example, GM and Chrysler are no longer using their truck profits towards legacy costs and other overhead expenses like they were before their bankruptcies. Just last month, Ford sold over 71,000 F-150s, a 31 percent increase from the previous May and the most in any month going back to August 2006.
For GM and Chrysler, their full-size pickup sales rose 24 and 22 percent respectively. And with sales numbers like these, it’s no surprise that all three automakers offer premium trim models like the $54k Ford F-150 King Ranch; the profit potential is just too good to miss out on.