Big pickup trucks are about as American you can get on four wheels, as is evidenced by the sheer number of pickups that are sold in the U.S. every year. However, with rising prices and growing financial pressure, this red-white-and-blue staple may be showing signs of strain.
In a recent interview with Autoline, President of the Dave Cantin Group, Brian Gordon, says that we may have reached “peak truck” in the U.S. as American buyers begin to shift away from large pickup trucks and SUVs.
Citing a Dave Cantin Group study, Gordon doesn’t contend that the truck and SUV segments will disappear, but rather, points to economic pressures like high vehicle prices and monthly payments as pushing buyers to choose more affordable options, such as smaller trucks, sedans, or even simply vehicles with fewer features, as a $50 to $150 reduction in monthly payments can make a big difference for many buyers.
As a result of this shift, more consumers are buying midsize trucks or sedans, rather than large, full-size trucks and SUVs. This shift is particularly important for the Big Detroit Three, namely GM, Ford, and Stellantis, which generate the majority of their profits from pickup trucks and SUVs. All three automakers have also had moved away from sedans in recent years, while automakers like Kia, Hyundai, and Mazda, which offer a wider variety of vehicles, are seeing growing success in the U.S. market.
Gordon also mentions that tariffs, such as the recent 25-percent tax implemented by the Trump administration on vehicles assembled outside the U.S., could raise truck and SUV prices by up to $10,000, which would likely put an even bigger dent in sales, especially as inflation, high interest rates, and economic uncertainty affect consumer confidence.
As for solutions, Gordon mentions hybrid vehicles and extended-range EVs, which can provide the “best of both worlds” thanks to improved range, lower costs, and fewer worries about charging compared to full EVs.
Ultimately, Gordon says the winners in today’s car market will be the companies that give consumers more choice and better value. The more affordable and flexible the vehicles, the more likely consumers are to buy.
Check out the full interview below:
Comments
How about a mid size truck with a V6 and 6 ft bed
Can’t find a 6′ bed on a full size anymore
? …. my 2024 silverado LT double cab has 6′ 6″ bed length. What you talkin bout Willis??
The truck craze was largely because 2 reasons, lawyers were tired of being emscalutlated so they traded in their beamers for something more blue collar, and muscle cars got too expensive so off roading became extremely popular alternative to having to buy a six figure sports car to be competitive.
Now people are getting tired of all the jacked up vehicles and some trucks just look like douche mobiles. As such, just like star belly sneaches, the craze will move onto something else, potentially muscle cars….. Be nice to have a 7th gen Camaro coming out this fall 🤦🏼♂️
Hey Steve 29,
Good insights. Everything is cyclical.
One point of correction: in BMW parlance, a “beamer” is a BMW motorcycle. A “bimmer” is an BMW automobile. Most everyone mixes it up though unless they’re a BMW enthusiast like me. 🙂
I grew up as a lover of all things GM and then became a BMW owner and fan when, as Barra called it, the GM “crappy cars” era began.
They’re killing the proverbial goose that laid the golden egg with insanely high prices. GM, in particular, is trying to essentially fund their entire operation off of big trucks and SUVs. The trucks are having to make up for big losses on EVs and significant profit shortfalls in China and GM may have simply pushed prices to the breaking point.
There’s really no reason, given the economies of scale and low technology nature of pickups for them to cost so much. Notwithstanding GM’s need to make up for losses elsewhere, a humble Silverado WT should probably cost 20 percent less than it does.
I think the projection is GM makes nearly 15K per unit sold, the suburbans make over 20K. Arlington Texas plant is the most profitable production plant in the world, exceeding even most tech plants. It’s sadly the EV’s dragging everything down into the dirt.
I think you can say that about Ford and Stellantis as well.
If all the male former contractor retirees dumped their top-of-the-line pickups (because they just can’t drive anything smaller), the Big 3 would go into bankruptcy. It’s one of the top 10 most idiotic current trends but those that I know in this category all have double-digit IQs and voted for you-know-who.
Tell everyone you are a broke liberal without actually telling anyone.
Tell everyone you are a Trump chump
I use mine for hauling things to and from my house (landscaping stuff, a piece of furniture, etc.) several times a year. It also goes to the beach regularly and to the deer lease. I’ll keep my truck. You keep your Encore GX – the one you claim is far superior than the Envista (laughable at best)
As a Part time Beef industry guy, East of the Mississippi, beef is almost exclusively retired factory workers who use their trucks as trucks 3-4X a week. In the East it’s hard to get a ranch of 12000 head, so the majority of eastern cattle is 100 head or less and a retirement project for men who can’t sit still.
Your food-brought to you by old retired white men who libs despise because they can’t be controlled, also their grandsons and granddaughters who are being taught from a young age to think for themselves.
I need a truck for my business, I have a machine shop, so I don’t need a giant ass four door over priced whatever!
Full size trucks are just too damn expensive for most buyers even used anymore. Base Chevy full size is almost $50K and it is the cheapest.
People have migrated to the mid size in limited numbers but they too are getting more and more expensive. Even my 2017 can sell used for almost what I paid for it back in 2017. Demand here there but not the money.
What is selling are cheaper lower priced CUV models. These can give the utility and the ability to carry and move most things many buyers have.
Hyundai has built cheap low cost cars under cutting the others. This is how they have grown so much in the last 10 years. They are a good car if you don’t keep a car a long time.
Chevy has taken notice and the Trax and Buick Envista have been the first where GM made each model FWD only. This makes it lighter for more MPG but it also removed all the extra structure that is needed for AWD that can add much to the cost even if it is still FWD. This is how GM can price them under $30K and still have a decent optioned model. This has proven popular with many buyers as sales have been strong.
Trucks rose up on the lack of RWD cars. But today cost has taken over and now people are willing to go FWD to save money.
Sedans still are stagnate as they are limited to what they can do. 5 people at most and the cargo area unless it is a hatch is saddled with a small trunk opening that will not fit most boxes. My Malibu had a large trunk but no way to get a box in the opening.
They’ve made the cost of a pickup way too high! Luxury pickups are nice, but they can make much cheaper truck and still be quality!
“People don’t need….”
Speak for yourselves. My 2500 HD is a daily driver that hauls mostly sail boat fuel. It also has the capability to haul cargo, campers, boats, loads of kids sporting equipment and EZ ups, fits a family of 4 and a large dog comfortably inside, has all the fun stuff your lame-o car does including heated seats/wheel, phone connectivity and maps, LED this and that….etc. It’s the Swiss Army Knife of vehicles. Since it’s a 6.6 gas L8T with the 6L90, its also the Honda Accord of trucks and will easily touch 250,000+ miles without drama as has been proven time & time again by countless fleets that push them that far on basic oil changes.
Just to add more salt to your already “trucks are too big!” wounds, I put it on the ZR2 lift with 37s and now it towers over your baby cars that I see you driving with fear in your eyes at 10 & 2.
Enjoy your tiny, featureless, single purpose vehicles. We’ll be over here living it up in the best monsters GM has ever built.
Only reason people losing interest is because of PRICE!!
NO truck is worth $80 to $100K
My nephew who is in farming, just ordered brand new F350 HO and it was over $100k…..told him that is down right crazy, he said, well, I needed a write off!! UGH……most individuals are unable to do this!! I know I can’t in my profession
TNTSIERRA-thanks for calling that out. I grew up in a rural agricultural area of IA and a good portion of the farmers would drive the most expensive cars and trucks and write them off for business expenses while not using those said vehicles for actual “farm work.”
Maybe S-10 size pickups from 2000’s era would be sellable AND affordable?..4WD, Ext. Cab, etc..had a tool-box cap & ladder rack that worked for me real well. 4.3 engine really worked great.
those 4.3 liters were great engines… i got 300,000 miles out of 1.
Some buyers need trucks, some buyers want suv Mary can supply these buyers . But Mary can’t supply some buyers that want a Sedan with an ICE , some buyers want ICE, not EV, Mary is pushing EV only Cadillac, NOT a good program ,
Pickup trucks are not losing interest. People will just buy used if they need 1 bad enough.