Chrysler exec sees market for small pickup

[BRealistic]

http://www.freep.com/article/2012070...xt|Auto%20news

Joe Veltri, Chrysler's vice president of product planning, is convinced there is still a market for small pickup trucks.

"Based on our data, young males still aspire to own a pickup," Veltri said. "Historically, if you go back to the '80s, the compact or midsize pickup segment was bigger than the full-size segment."

Now, many millennials -- or people born after 1980 -- have outdoor hobbies such as riding personal watercraft, mountain biking and fishing and are looking for a fuel-efficient pickup at an affordable price.

Then, Veltri contends, baby boomers will soon want to trade in their full-size pickups for something smaller as they age.

"The trucks today, they are big, they are fuel-inefficient," Veltri said. "The formula, in my opinion, doesn't meet the needs of the market."

Chrysler ended production of the midsize Ram Dakota last August, but is studying the business case for a so-called lifestyle pickup.

The automaker showed a concept called the Dodge M80 in 2002 and another one called the Dodge Rampage in 2006. Chrysler also talked about plans for a compact pickup in November 2009 when it revealed its five-year plan.

On Tuesday, Veltri insisted that a final decision has not yet been made even though engineers are busy studying several platforms for a small Ram pickup.

He said the new pickup would be built on a unibody, or car platform, rather than a body-on-frame structure of traditional trucks and off-road SUVs.

"Based on the research we've done of the customers and their needs ... we can do something in a unibody," Veltri said, adding that there are consumers who don't need or can't yet afford something bigger. "Truck buyers are very loyal, so if you are able to sell one of your smaller trucks to a young buyer, you have a high probability of getting them to buy a full-size truck when they get older," he said.

While sales of compact and midsize pickups once topped 1.5 million annually, sales have declined in recent years.

Veltri said small pickups fell out of favor because they became larger and more expensive.

Many consumers opted for the larger trucks that in many cases weren't much more expensive.

But Ford's decision to discontinue the Ford Ranger in the U.S. last year and General Motors' plan to stop producing the Chevrolet Colorado and the GMC Canyon this year leaves a void among the Detroit Three in the segment.

GM has said it plans to re-enter the small pickup segment with a new Chevrolet Colorado, but has not said when.

That leaves an opening for someone.

So far this year, Toyota has sold 67,150 Tacoma pickups, or 27% more than the same six-month period in 2011.

"We are enjoying the fact that some competition has exited the market," Bob Carter, group vice president and general manager of the Toyota division, said Tuesday. "Also, consumers are taking a look at that segment because of the inevitable fuel savings on midsize pickups verses full-size."

However, two other smaller pickups -- the Nissan Frontier and Honda Ridgeline -- are not doing as well. Nissan has sold 29,385 Frontiers this year and Honda has sold 7,269 Ridgelines.

Analysts say the Ridgeline struggles because it is Honda's only pickup and, at a starting price of more than $29,000, costs too much.

"There is a vacuum left in the small pickup category," said Jesse Toprak, vice president of market intelligence for TrueCar.com. "If (Chrysler) can come up with a highly fuel-efficient, more urban-outfitted small pickup, I think they can do quite well with it."










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I believe the (US) manufacturers had a big incentive to sell small trucks even if not profitable... the CAFE.
They basically dumped as many four banger trucks at or below cost on the market so they could sell more profitable large trucks and SUVs.
But with the fullsize trucks getting surprisingly good EPA ratings now, and with cute utes being classified as trucks... what incentive do they have to spend a billion to make a new smaller than fullsize truck that could take away some of their fullsize truck sales and need to be sold at a low profit margin to even make sense in the market?

[Eightysixturbo]

I am all for small pickups but they need to perfect their current lineup..

[emmettlodge]

Whatever they make, needs to have better quality than the old Dakota line-up, and be substantially better at either power or fuel economy than the current mid-size line-up, in order to be successful.

[VWObsession]

I like this news.

[Iroczgirl]

Fuel efficient, diesel powered, Australian style 'utes'? Yeah, I'd like to see that.

[Air and water do mix]

I like the idea of an open bed, seating for 4 and high mileage. If that's possible then yeah, cool. If it doesn't get great mileage, then it's nearly pointless. We'll just have to see what they can come up with.

[emmettlodge]

I like the idea of an open bed, seating for 4 and high mileage. If that's possible then yeah, cool. If it doesn't get great mileage, then it's nearly pointless. We'll just have to see what they can come up with.

The emissions restrictions and ultra low sulfur fuels here in the US are going to seriously cramp their style when it comes to a small diesel. I'm under the impression that currently Chrysler (unlike, say, VW) doesn't really have anything laying around their shops diesel-wise that is ready to "throw in" a truck. Which means that either they're going to have to take some time to drum something up (which gives other automakers a chance to beat them to the punch) or they're going to try to squeeze good MPG's out of a gasoline engine (which can have iffy results).

Not holding my breath.

[Mazda 3s]

[emmettlodge]

[BRealistic]

Fixed.

The Taco is a great truck.. but pretty it ain't

[emmettlodge]

Fixed.

The Taco is a great truck.. but pretty it ain't

What? It's gorgeous! You're just jealous.

[Aonarch]

What? It's gorgeous! You're just jealous.

I saw "yours" in my works parking lot... I had to do a double take, sexy.

[BRealistic]

What? It's gorgeous! You're just jealous.

[emmettlodge]

I saw "yours" in my works parking lot... I had to do a double take, sexy.

Regular cab? That's surprising, they're pretty rare. I only ever see Access or Double cabs around here any more. All the regular cabs are the older generation.

[emmettlodge]

Oh man, total tangent but that movie was hilarious. Totally forgot about it

[Dieselstation]

How about a medium sized truck?

[$teve]

The emissions restrictions and ultra low sulfur fuels here in the US are going to seriously cramp their style when it comes to a small diesel. I'm under the impression that currently Chrysler (unlike, say, VW) doesn't really have anything laying around their shops diesel-wise that is ready to "throw in" a truck. Which means that either they're going to have to take some time to drum something up (which gives other automakers a chance to beat them to the punch) or they're going to try to squeeze good MPG's out of a gasoline engine (which can have iffy results).

Not holding my breath.

Don't forget about fiat and vm motari(sp?) there could def. be a diesel as an option, but I agree it will most likely be a gasser..

[finklejag]

They can make these for cheap.

[leaftye]

Fuel efficient, diesel powered, Australian style 'utes'? Yeah, I'd like to see that.

This, except maybe not the Australian part.

And they better be small. As was noted in the quote, a big small truck doesn't make sense.

[czykvw]

This, except maybe not the Australian part.

And they better be small. As was noted in the quote, a big small truck doesn't make sense.

Fiat strada!

[leaftye]

They could take that Mahindra diesel truck, make it look like a Dodge and improve the interior and that'd probably do quite well.

[horribleR]

We need more Rangers..

[CBJ]

Fiat strada!

My thought as well, slap a Dodge nose on it and call it a day.

[Boogety Boogety]

Back in the day, in the '80s, we bought eight small Datsun/Nissan trucks for our business, all 4 speeds, with AC and AM/FM radio, period... no power windows or mirrors or other creature features to foul up. They ran flawlessly, got damn decent mileage, were cheap as dirt to buy and maintain, and never gave us a moment's trouble. If something like that was available now at a decent price, I wouldn't hesitate to personally buy one just to run around town in or carry things back and forth or drive to Home Depot for the usual stuff. I don't need/want a big $40K truck, and neither do many others... but small, fuel-efficient, no-frills workhorses like those basic Nissans would sell like hotcakes for half that much... or less...

[alleghenyman]

I'd be all over something like this if it could have a six foot bed, four seats, decent ground clearance, and 28 highway MPG. Make it look like a truck and skip towing more than 2000 pounds. Basically what Subaru attempted but not dorky.

[whitejeep1989]

The emissions restrictions and ultra low sulfur fuels here in the US are going to seriously cramp their style when it comes to a small diesel. I'm under the impression that currently Chrysler (unlike, say, VW) doesn't really have anything laying around their shops diesel-wise that is ready to "throw in" a truck. Which means that either they're going to have to take some time to drum something up (which gives other automakers a chance to beat them to the punch) or they're going to try to squeeze good MPG's out of a gasoline engine (which can have iffy results).

Not holding my breath.

The Grand Cherokee, Durango, and likely the Ram and Wrangler will be getting a Fiat V6 diesel next year.

[Smigelski]

We need more Rangers..

Here you go.

[whitejeep1989]

They can make these for cheap.

That looks miserable.

I wonder if that would pass the moose test?

[Volvo_D]

There are TWO things a compact truck needs in order to compete, everyone already touched on fuel economy, but thats the second factor...the first one is PRICE. it has to be cheaper than an F150. Ask the Ranger about that....

[Smigelski]

There are TWO things a compact truck needs in order to compete, everyone already touched on fuel economy, but thats the second factor...the first one is PRICE. it has to be cheaper than an F150. Ask the Ranger about that....

I remember years ago (~2007) being in a Mazda showroom and seeing a B2300. Base as base could get, but they were only asking $11k for it for a brand new truck. That's not bad, I thought. But when you start putting options on them, they got expensive quick.

[6cylVWguy]

I agree with the Chrysler folks--I think there is a market for small trucks. The problem currently is that all the development money has gone towards the full size trucks, making them bigger and equally as efficient as most smaller trucks. But if Chrysler can capitalize on the size of a smaller truck by offering something that's light with an efficient drivetrain, they'll have a winner, IMO. As I mentioend in other threads on a similar topic, I'd be very interested in what chrysler is looking to accomplish. Bring it out in 5 years and I may very well purchase it.

[BRealistic]

There are TWO things a compact truck needs in order to compete, everyone already touched on fuel economy, but thats the second factor...the first one is PRICE. it has to be cheaper than an F150. Ask the Ranger about that....

I think they need to take the Jetta/Versa sedan philosophy.
Make it simple, low priced and roomy.
Surely a modern four banger truck could get mid 20s mpg combined, which would be appealing to customers wanting an open bed for light duty and to the manufacturers' cafe numbers.

[2VWatatime]

Surely a modern four banger truck could get mid 20s mpg combined

Not w/any decent power output. Open box/square front + 2ton capablility (load + towing) + highway speeds = not great MPG numbers.
Note that the late 70s/80s mini trucks were down on hp, load, and size - esp. the cabin. Anyone been in a Mighty Max or LUV lately?

[whitejeep1989]

Not w/any decent power output. Open box/square front + 2ton capablility (load + towing) + highway speeds = not great MPG numbers.
Note that the late 70s/80s mini trucks were down on hp, load, and size - esp. the cabin. Anyone been in a Mighty Max or LUV lately?

If a mid-sizish CUV like the Chevy Equinox can get low 30 MPG HWY ratings, with a 4 cylinder, there is no reason why a similar sized pick-up couldn't get high twenties. Obviously, high MPG figures won't be achieved while towing or under full load, but that's not how most pickups are used 99% of the time.

I think vehicles like the Ford Transit Connect probably make small pick-ups make less sense. With more aggressive, consumer-retail oriented styling, small vans like the Transit could be made to appeal to the young males that are being targeted by small pick-ups.

[Uk in NY]

Not sure about australian UTE's over here, although they are awesome, but certainly the 'tradie' trucks in Australia would be a welcome addition.

-All come with TDI engines which offer significantly better MPG than a full size pick up.

Loved the new Ranger.