THE U.S. BIG TRUCK RACE, tax cuts, employment confidence

big trucks, employment, tax cuts

Big trucks are always very popular with the U.S. public – and even more so during the past year when the economy started booming, tax cuts kicked in, and people in the U.S. became far more confident of their buying power as a result of their confidence in their employment staying power.

During the past year, sales of pick-up trucks and vans have boomed.  General Motors and Ford Motor Company are the two companies that have benefited the most from this boom.  Ford has traditionally held a substantial lead in the race between the two companies, due to its F-series pickups.  Now, however, GM plans to reintroduce a medium-duty commercial truck, which they abandoned during their 2009 bankruptcy.  (What a difference a few years make!)  These new Chevrolet Silverados will be built by truck maker Navistar International Corporation at their plant in Springfield, Ohio.  The new trucks are “super-trucks” – three times as heavy as a regular Silverado.  As demand for passenger cars recedes, Detroit is responding to the interests and needs of the American public – GM, Ford and Fiat Chrysler Automobiles are all adding new truck models in a bid to boost profits.  Big pickup trucks and the SUVs that share the same frames provide fatter profit margins for the auto companies.  GM is looking forward to its business customers returning, as a result of their adding the new Silverados.  And Ford is equally confident that the company, which has a head start on its lead in truck production, will maintain that lead and its customer base.  So, the great truck race is on – place your bets (figuratively speaking!).

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