Posted: August 15, 2014
Ford Economists Expect A Full-Size Truck Sales Boom
Economists predict oil and energy industry will help boost full-size truck salesBy TTM Staff
Lindsay Chappell reported in Automotive News about how Ford expects full-sized pickup trucks to rebound in large quantities. The story quotes Emily Kolinsi Morris, chief economist for Ford Motor Co. that “The big missing factor in this recovery so far has been the housing market." Chappell reported that U.S. full-size pickup truck sales rose four percent to 1.1 million units in the first seven months, in an overall market that increased five percent. According to the Automotive News Data Center, The segment generated sales of 1.91 million units in 2013. It topped 2.1 million in 2007, and then collapsed to 1.1 million in 2009.
According to the article, Morris and other forecasters in the industry predicted a stronger performance for the full-size truck segment. Morris is quoted in the article saying, “As we look a little bit further out, we see the potential for some additional upside, particularly in full-sized pickup sales as the housing recovery eventually catches up with the rest of the economy.”
Morris also stated that the U.S. oil boom will breathe new life into the full-size truck segment, in which the oil and energy industry requires trucks to carry out work at job sites. Among other indicators that was reported in Automotive News, is the Citi Investment Research and Analysis director Itay Michaeli. Michaeli was reported saying that the average age for replacing older vehicles in the oil and energy industry is between 13 and 15 years. Michaeli says that the current average age is now 13 years as of 2013. In addition, the U.S. Energy data reports that oil rigs have increased from 187 in 2010 to 1,545 as of this summer.