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With Profits at $17,000 Per Truck, Pickup Market Competition Heats Up (While Sedans Die)
It's well known that trucks allow for more profit, but I'd like to understand more on why. You'd think the producers would have figured out how to create more profit on cars that use less materials and have as much room for added features and technology as do trucks. I suspect it's just a matter of time, however, before truck's extra profit is reduced by more competitors getting in the game. I just hope the American car industry is ready for the next big leap in oil prices - but they probably won't be.
Dodge has pushed their exterior styling the furthest - with the most ground to make up, design/styling was a good lever to pull. I think the "$17,000" figure has to be evenly spread across an entire lineup, as a bare-bones F-150 won't be making the crazy profits of a Platinum or King Ranch trim. Bulk of those profits coming from interior lux features, technology, and really comfortable seats. I bet Dodge can mark-up their new 12" touchscreen by 5X in COGS.