(This story has been updated with additional information.)
Sales of pickup trucks have boomed this year, but so too has the competition for sales, which is heating up across the board.
General Motors, for example, has been called out for raising incentives recently, according to a widely circulated piece from Bloomberg News.
Incentives averaged $7,962 on the Chevrolet Silverado, up 76% from June levels, and $9,457 on the GMC Sierra, an increase of 147%, according to J.D. Power data obtained by Bloomberg.
Ford offered $4,457 on its F-150 and Fiat Chrysler Automobiles NV had discounts of $6,172 on its Ram, according to the research firm, Bloomberg noted.
The information bolstered the idea that Ford is dominating the surge in truck sales. “If GM’s truck supplies are tight, why are they offering incentives,” noted one Ford partisan, who asked not to be identified.
(GM Q2 earnings double despite sliding sales results. For more, Click Here.)
GM spokesman Jim Cain disputed the suggestion is that GM has upped incentives because it was losing ground to rivals, noting the incentives observed by J.D. Power reflected a one-time sale during the first eight days of July that has ended.
“GM is growing retail sales – the most profitable business – faster than all other full-line automakers,” Cain said in an e-mail. “GM’s incentives have been at or below the industry average all year and our transaction prices are growing faster than the industry average.”
Cain added It’s normal for incentive spending to increase sequentially during sales events, especially at the end of the model year.
“We expect our spending for July will be in-line with or below our domestic and many Asian competitors in the 13% of (average transaction price) range. In addition, the 20% Manufacturers Suggested Retail Price offers currently in the market on only available on select models in dealer inventory and the inventory offers are limited to 10% of dealer inventory.
Overall, GM dealer inventory on June 30 was 706,558, down 2.2% from May; 72-day supply, Cain said.
Meanwhile, Fiat Chrysler Automobiles was quick to challenge Ford’s assertion that one of its heavy-duty pick-up truck could tow more than any other truck in the market.
(Click Here for more about Chevy needling Ford about its truck’s lightweight status.)
“Ford, America’s truck leader, is taking heavy-duty trucks to the next level with the all-new 2017 F-Series Super Duty – empowering customers with the most towing and hauling capability and the most horsepower and torque of any heavy-duty pickup truck,” Ford’s announcement stated.
The all-new F-Series Super Duty can tow heavier trailers and haul heavier cargo than ever before, with maximum gooseneck towing capacity raised to 32,500 pounds on F-450, fifth-wheel towing capacity boosted to class-leading 27,500 pounds and conventional towing to class-leading 21,000 pounds, Ford said.
“As it stands the 2016 Ram 3500 beats all competitors (F350 included) in the Class 3 segment with 31,210 pounds of towing capacity,” FCA spokesman Nick Cappa said in an e-mail, adding there is only one player in the Class 4 pickup segment, the F-450, and it is not a valid comparison to Class 3 pickups.
“Even though our competitor’s new HD is not yet available, we have already beat them with features, such as air suspension, link coil suspension and the highest towing capability in the segment,” Cappa said.
Ford spokesman Mike Levine, however, defended Ford’s claim on having the best towing capacity.
“Ram continues to confuse class with nomenclature,” Levine said, adding that Ford’s claim is measured against an SAE standard to which Fiat Chrysler has subscribed.
(To see more about Ford’s rising horsepower and gear numbers for the 2017 F-150, Click Here.)
“Our max tow F-Series Super Duty pickup truck is the F-450, now rated to tow up to 32,500 pounds. It’s Class 3, like our F-350 pickup truck,” said, noting its rated for towing up to 32,000 or 790 more pounds that the Ram 3500. Class 3 trucks are vehicles with a gross vehicle weight rating between 10,001 and 14,000 pounds.