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Old June 25th, 2016, 09:15 AM
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Default Pickup Prices and Profits Push Industry Production

Average transaction prices for full-size pickups are climbing at a significant rate, surpassing the average of the automotive industry as a whole.

According to Automotive News (subscription required), pickup truck sales were up 10 percent for April, with each truckmaker searching for ways to squeeze more trucks out of production lines, especially since they are investing in more well-equipped models and luxury trim packages for the light-duty and heavy-duty segments.

Average pickup truck transaction prices have been climbing steadily averaging 4.5 percent per year during the last five years, with the average sold pickup price rising more than 20 percent from 2011 to 2015.

But what about incentive spending by the big pickup manufacturers?

Not surprisingly, according to Cars.com data, incentive spending is climbing as well, with average money-on-the hood discounts for the major full-size truckmakers (Chevrolet, Ford, GMC and Ram) averaging a little more than $4,500 per truck. Of course, that's nowhere near incentives that reached $10,000 during the height of the recession. Truckmakers will have to be careful not to let those seductive incentives artificially inflate the popularity of their products and cut into profits.

So far this year, Ford seems to be doing the best job keeping spending down when compared to its Detroit competitors. Using Cars.com data, here's the average full-size pickup (light- and heavy-duty) truck incentive spending per manufacturer for the first four months of 2016.

Ram Truck: $5,612

Chevrolet Silverado: $5,086

GMC Sierra: $4,215

Ford F-Series: $3,180

Nissan Titan: $1,238

Toyota Tundra: $1,005

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