For U.S. automakers, truck sales are still a crucial driver

Even as Detroit automakers move their focus away from pickups to small, fuel-efficient cars, full-size trucks still make up more than 20% of sales by Detroit automakers and could play a key role in helping the companies recover in 2010.

Foreign automakers, despite efforts with models such as the Toyota Tundra and the Nissan Titan, have not been successful in stealing profitable pickup market share from the Detroit Three.

Through November, Detroit automakers sold 91% of all full-size pickups.

“There is still that one stronghold left over,” said Jesse Toprak, auto analyst for TrueCar.com. “It is important, at least in the interim, that the domestics experience strong truck sales because it generates cash.”

That is expected to happen. As the economy rebounds and the housing industry recovers, sales of full-size pickups, a mainstay for contractors, usually make gains.

Although it’s unlikely that trucks will rebound to the heyday of sales in 2005, even a small boost would significantly lift the fortunes of Detroit’s automakers.

Home builder Joe Garner said he bought a new Ford F-150 a few weeks ago because the housing market in Columbus, Ohio, started to rebound in October.

“It was slow in the summer, but it’s actually picked up for me,” Garner said. “We’re pretty busy right now.”

Garner’s confidence is good news for the Detroit Three.

The full-size pickup segment has been hit harder than the overall automotive industry because of soaring gas prices and the housing slump.

Through the first 11 months of last year, full-size pickup sales declined 31.2% while the overall industry declined 23.9%, according to Autodata Corp.

But dealers and manufacturers are hoping for a rebound this year.

“The biggest thing for us is the pent-up demand that is building up on the commercial side of trucks,” said Gordon Stewart, owner of Gordon Chevrolet in Garden City, Mich. “At some point, it is going to explode.”

In November, home construction rebounded with housing starts increasing by 8.9% compared with October, the Commerce Department said. However, November starts still declined 12.4% compared with the same month a year ago.

“As a segment, full-size pickups are very dependent on the level of construction and new housing starts,” said Ford Motor Co. sales analyst George Pipas.

Pipas expects full-size pickup sales to increase this year but doubts that increase will start until the second half of the year.

“Even after housing recovers, it could take awhile,” Pipas said.

Toprak expects a rebound to begin before June and expects pickup sales for the year to increase by about 15%.

Pickups often sell for more than $30,000 and generate more profits than small and mid-size cars. They also still account for about one-fifth of the Detroit Three’s total sales.

Snavely writes for the Detroit Free Press