Do Pickup Truck Sales Make Any Sense?

I have lived all my life in cosmopolitan cities, I was in my 30s before I got a driver's license, I know little about cars and less about trucks. So do please help me out on this one: I am very, very confused by the year-end statistics now being released on pickup truck sales.

In 2007, as in every year, sales of light trucks - pickup trucks - were, at 8.5 million, significantly greater than automobile sales, which were 7.6 million. If I had to point to one reason for the atrocious fuel economy in the U.S. compared to the rest of the world, this would be it.

But weirdly the year-on-year fall in pickup truck sales (2.4%) was smaller than the year-on-year fall in car sales (2.6%). That doesn't make a huge amount of sense: after all, when monthly car sales briefly overtook truck sales in May, the reason given was high gas prices. And truck ownership is naturally very heavy in the construction industry, which was hurt very badly in 2007.

And according to Micheline Maynard in the NYT, sales of the Ford (F) F-series, the best-selling vehicle in the country for the 31st straight year, plunged by 13.2% in 2007. On top of that, the F-series' biggest competitor, the Chevrolet Silverado, saw sales fall 2.8%. Given those two numbers, and the fact that all the other numbers in the article are negative as well (Dodge Ram down 2%, Honda (HMC) Ridgeline down 15%, Nissan (NSANY) Titan down 9.2%), how can total pickup sales have fallen only by 2.5%? (The number in the NYT article is one tenth of one percentage point away from the Wards Auto number, which is no big deal.)

More generally, why are pickup trucks so insanely popular in the U.S.? And are the reasons strong enough to withstand high gas prices? I ask because without pickup trucks, Detroit is dead. But so far the pickup seems to be extremely good at refusing to die.

Update: A reader in Detroit comes to the rescue.

The 8 million number you're looking at is all trucks -- not just pickups. The definition of a "truck" for auto sales counting includes SUVs, vans, minivans and even small vehicles with a hatch and folding seats (such as the Chevrolet HHR). Pickup sales are hurting, but small SUV sales are way up.

Comments

[livefoadren...:]

Yeah, you certainly seem like a city person... not to be unkind but where do you think things come from? Buildings, vegetables, etc. come from contractors, farmers, etc. Do you think they are going to drive a Honda Prius???? While a significant amount of trucks are still purchased by people who do not use the vehicle for work, there is still a huge number of people throughout our country who do.

2008 Jan 06 11:15 AM

[Horse Farmer:]

Many people buy pickups because after 2 years they hold their value way better than cars or SUV's. They are strong, get limited damage in crashes, protect the people inside better, last longer (Much Longer), have little to repair cost less to license and haul stuff. A good pickup gets the same mileage towing a 12000 pound load as your typical SUV gets running empty.
A two year old pickup truck is the absolute best value for your money. Look it up and cost it out. Include everything, taxes, fuel costs, resale value, safety, insurance etc. It may feel good to drive a car that gets 35 miles to the gallon, but many people need more than a ride to the grocery and an unsafe car that is vurtually worthless after 5 years and 100000 miles.

2008 Jan 06 11:24 AM

[Paul Meisel:]

Most tradesmen (carpenters, glaziers, plumbers, builders, repari contrators, you name it) drive some sort of a truck to carry tools and materials. Many suburbanite DIY types have one truck as a drive to work vehicle so they can move materials for projects on weekends. Many hobbyists (snowmobilers, boaters, motorcyclists) have a truck to tow or carry toys.

In my suburban neighborhood, it is odder to have two cars and no truck. The people who do are largely retirees who have aged beyond doing home and yard projects on their own.

I have been without a truck for two years now, and have had to borrow a neighbor's several times. Guess what my next vehicle will be?

2008 Jan 06 12:00 PM

[Andy R:]

Pickup trucks do hold their value better than cars, it is true. The reason is the high demand, though, and once the demand starts to drop, so will the resale values. Do you think that a 13.2% drop in F-150 sales isnt going to change the entire market value for used trucks over time? If you do not think so, then I think your view of economics is not very broad. Personally, I own a 2004 Nissan Titan, which in my opinion is about the best truck on the market, but I worry about its resale value in a couple more years. So I take very good care of it.
Also, not all cars are "virtually worthless" after 5 years and 100k miles, unless you do not do the maintenance and do not take proper care of it. It is up to us as consumers to make sure we do not purchase such a vehicle in the first place. And most cars are very safe, way more so than even a few years ago. Horse Farmer made some good points, but the debate is much wider. I agree with the main article: the biggest problem in the USA as far as deplorable fuel economy is our outrageous love of large, gas hog vehicles. Better fuel efficiency standards is a start, but we have to all become more aware and more proactive toward becoming much more efficient in our consumption of energy.

2008 Jan 06 12:15 PM

[redleg:]

Is this the guy that criticizes Ben Stein's columns for their obtuseness? It seems that Mr. Salmon can't even grasp the simple concept of the pick-up truck. I'll take Stein ...

2008 Jan 06 12:49 PM

[Pete1212:]

Seems like the pick up truck has a veritable place in the American economy. If all the contractors, craftsmen, engineers and all the other workers who keep the economy humming were to do away with their pick up trucks, what viable alternatives would they have? Other than grooming donkeys and horses to haul stuff as in the days of yore, seems like making the pick up truck more fuel efficient or having it run on alternative sources of energy is the way to go.

2008 Jan 06 01:21 PM

[JT Patton:]

Those of us out here in the country need pickups because we are always hauling things. You city folk (no offense) might think it's a macho thing, but pickups are the practical vehicle for us. I drive a 1995 Mazda B2300. It's small, but can hold a dozen bales of wheat straw, which I use for mulch. Can't tell you how many times I've helped people move furniture because they drive cars. I'll never own a car. We need hybrid-engine pickups in a bad way, but Detroit won't listen.

2008 Jan 06 02:52 PM

[swaps:]

In Colorado, most trucks I see on the highways around Denver are just commuter vehicles for going to and from work. I never see any cargo in them.

Most construction site workers could commute to and from work in a VW bug with their tools in the trunk.

Dan

2008 Jan 06 05:14 PM

[User 136799:]

For many folks, the modern truck has taken the place of the family sedan, just as the crossover utility vehicle (CUV), or small SUV, has taken the place of the minivan and station wagon. Today's trucks have large, comfortable interiors with all the electronic goodies and plenty of space to stretch out. Truck beds can be configured to meet any need. The number of accessories allowing truck owners to personalize them is mind numbing. In short, the beauty of a truck is you can make it anything you want it to be.

Compared to a small economy car, truck fuel mileage isn't great, but it's not horrible. My V8 powered full sized truck gets 18-20mpg in mixed driving. A friend's Ford Expedition returned 22+mpg on a recent road trip, same number as a family member's Honda Ridgeline (the pickup truck for people who don't like pickup trucks). For comparison, a V6 Honda Accord gets about 22-24mpg and a V6 Nissan Altima even a bit less.

Frankly, you don't need to be "out in the country" to enjoy the benefits of owning a truck. About the only place a truck would be a hassle is in an urban environment. Loft-living trendy urbanites probably don't need a truck, but the vast majority of us can at least see the advantages. Trucks are a good value, too. You can get a nicely equipped full size truck in the mid 20's, about the same price as a well equipped Accord or Camry. And just like a good used Honda or Toyota, there will always be a demand for good used trucks. Don't expect to see used truck values to drop much in price like they have with large SUV's.

2008 Jan 07 12:48 AM

[Alazia:]

This past June I sold the pickup I purchased to when I needed pull a 5th wheel trailer. That need disappeared, but the need for the utility of a pickup did not. I also own a diesel VW Jetta that really does get 45 to 50 mpg (Hybrid, who needs a hybrid?). My solution was to put a light duty trailer hitch on the Jetta and I now have a small 4x8 trailer that I hook up whenever I take trash to the dump, move stuff, bring home mulch, get firewood, etc. I now call the combined VW/Trailer my 50 mpg 1/2 ton pickup. Works fine and the 95% of the time I don't pull the little trailer (which holds as much as any 1/2 ton truck) I get some of the best mileage available and it is a breeze to park. Think outside the box.

2008 Jan 07 08:19 AM