PICKUP TRUCK PRICES * USA: After NAFTA's withdraw
* DC - Potential Trump Tariffs could shake up U.S. pickup truck Market
President Donald Trump’s campaign promise to withdraw from the North American Free Trade Agreement and place a 35 percent tariff on goods imported from Mexico could roil the market for pickup trucks – the most American of vehicles... U.S. consumers purchased 2.7 million pickup trucks last year. Encouraged by low gas prices, buyers continue to gravitate to the large vehicles for their high profile, ample space and particularly American styling... Levying a 35 percent tariff on Mexican goods could cost the American auto industry annual sales of 450,000 vehicles, according to a recent report by CAR. The same study estimated that withdrawing from NAFTA would also cause vehicle prices to increase... Truck sales are vital to U.S. automakers because they deliver greater profit than other types of vehicles. General Motors generated 100 percent of its profits from trucks and large SUVs in 2016, Adam Jonas, an analyst at Morgan Stanley Research, wrote in a recent investor report... The average price of a light-duty full-size pickup truck has already increased more than 20 percent between 2012 and 2016, to over $39,000, according to industry research firm J.D. Power. The price of heavy-duty full-size pickup trucks has risen 14.4 percent to more than $50,000 during that time...
(Photo: Reuters - Factory employees building trucks at General Motors factory in the city of Silao, in the state of Guanajuato, Mexico) -- Washington, DC, USA - Trucks.com, by RYAN ZUMMALLEN - MARCH 21, 2017
Labels: truckmakers news USA