Why Do Pickups Cost Less To Produce?

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mso489

Lifer
Feb 21, 2013
41,211
60,649
This isn't a car and truck site, so I will cease and desist, for a while, after this, but I have this nagging curiosity. Ford, Chevy, GMC, and Dodge all claim significant profits from selling more pickups instead of cars (sedans and coupes and that sort of thing). And SUV's are often built on truck platforms. I can't figure out what the major savings would be between a sedan and a pickup. Many pickups now have a full front and back seat and interior treatment. Why does the truck bed in the back represent a significant savings in production? It seems the whole package would usually be heavier duty, more metal and bigger engines. How does this result in less production expense and bigger profits? I'm usually somewhat good at figuring out this sort of thing, but I am stymied.
 

Chasing Embers

Captain of the Black Frigate
Nov 12, 2014
45,544
121,080
Certainly not that way here though seasonal price changes happen. In Summer car prices raise and truck prices lower. In Winter, the opposite is true. If you dont live in a rural area, truck demand may not be as high, pushing the price down.
 
I have no idea what the production costs are, but a truck is just worth more than a car or SUV. And, it holds its value for much longer. A used truck costs almost as much as a new one for many years after they've been driven off the showroom floor. An SUV or car takes a huge nose dive the moment you sign your name to it.

People will go looking for used trucks, even if they can afford new... Men usually drive and keep their trucks for much longer than others will drive an SUV or car. Also, having less carp to break makes a truck worth more, power windows, seat warmers and crap like that is just stuff that will break and drag down value. I'd rather have not had it than to have it and it not work.

Here in Alabama, guys just drive trucks. I have several, and I have a car, but my wife drives it. I just don't have any desire to drive a car... at all.

Also, they last forever. Truck engines and the whole drive train hasn't changed much in decades. So, if a motor blows I can drop a used on in and keep going for much less than most car repairs.
 

mso489

Lifer
Feb 21, 2013
41,211
60,649
Urban/suburban folks who buy trucks often just use them as cars at considerable expense. I've frequently joked about starting business roughing up the beds of suburban pickup trucks so they look well used, scrape some concrete blocks around in there, and toss some fire logs into the bed to make some dents. Seriously, in various articles about the fading of sedans and the up-tick in pickup production, I always read about the trucks costing less to build. Maybe they just cost more to the consumer so are a better revenue stream, but I have repeatedly seen statements indicating they cost less per unit to build. Maybe it is just not clearly explained. Meantime, most of the Ford, Dodge, and Chevy sedans have gone out of production, and the pickups keep rolling off the lines.
 
Dec 6, 2019
5,226
23,983
Dixieland
I was in the car business for 10 years 18 to 28.. Finally had enough of the nut house, I make far less but I am much happier.. Said all that to say this, a simple answer. Saftey standards/insurance standards. Same reason all cars have thosr dumbass back up cameras ( to prevent fender benders ) and huge blind spots ( stronger roofs to prevent the car being crushed ). I've always figured the Blind spots kill more people than they save and the back up cams are useless. The new car business moves any direction because of the institute of highway saftey.. i think thats the name. They decide which cars get 5 star saftey ratings, companies compete for those stars and spend a ton of money. You wind up paying for that.. with trucks they don't try as much because its just not worth the money spent for them.
 
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3rdguy

Lifer
Aug 29, 2017
3,472
7,299
Iowa
Trucks are more in demand than cars. Thus they can charge more overall for a truck so they end up with more profit per unit. New trucks are expensive and used hold their value, they are in demand. If trucks cost less to build I would say it is because of scale.
 

tbradsim1

Lifer
Jan 14, 2012
9,219
11,877
Southwest Louisiana
Love my 07 Tundra, but the electronic crap they put in them cost me 1100$ last year, all my gauges started acting strange, they had to go in the dash. Now my air bag light is on and Toyota folks want 100$ to hook up a code reader to tell me how much it is to fix, did they screw something up while they were in dash? Told wife gonna drive that SOB WITHOUT AIR BAGS, drive plenty cars and trucks back in the day without them. Only go to feed store once a month, wife says You don’t need a truck, I tune my selective hearing and tune her out, BAH HUMBUG!
 
Dec 6, 2019
5,226
23,983
Dixieland
Urban/suburban folks who buy trucks often just use them as cars at considerable expense. I've frequently joked about starting business roughing up the beds of suburban pickup trucks so they look well used, scrape some concrete blocks around in there, and toss some fire logs into the bed to make some dents. Seriously, in various articles about the fading of sedans and the up-tick in pickup production, I always read about the trucks costing less to build. Maybe they just cost more to the consumer so are a better revenue stream, but I have repeatedly seen statements indicating they cost less per unit to build. Maybe it is just not clearly explained. Meantime, most of the Ford, Dodge, and Chevy sedans have gone out of production, and the pickups keep rolling off the lines.

Im not keeping up with the Jones', my car goes everywhere I go. Job site, dirt road, I'll even pull a trailer. Haha
 

Chasing Embers

Captain of the Black Frigate
Nov 12, 2014
45,544
121,080
The company I work for manufactures automotive fuel delivery systems. They have never made any for trucks as they say it wouldn't be cost effective. More demand from different companies for cars than trucks.
 
Dec 6, 2019
5,226
23,983
Dixieland
I have no idea what the production costs are, but a truck is just worth more than a car or SUV. And, it holds its value for much longer. A used truck costs almost as much as a new one for many years after they've been driven off the showroom floor. An SUV or car takes a huge nose dive the moment you sign your name to it.

People will go looking for used trucks, even if they can afford new... Men usually drive and keep their trucks for much longer than others will drive an SUV or car. Also, having less carp to break makes a truck worth more, power windows, seat warmers and crap like that is just stuff that will break and drag down value. I'd rather have not had it than to have it and it not work.

Here in Alabama, guys just drive trucks. I have several, and I have a car, but my wife drives it. I just don't have any desire to drive a car... at all.

Also, they last forever. Truck engines and the whole drive train hasn't changed much in decades. So, if a motor blows I can drop a used on in and keep going for much less than most car repairs.

There are certain used trucks that are equal to or worth the same price as the original price.. The used truck market has been wild. Old Toyota trucks are highly sought after.. When I get my hands on one I can put a stupid price on it and sell it in a couple days.
 

voorhees

Lifer
May 30, 2012
3,833
941
Gonadistan
While I enjoy looking at trucks for fun, I wouldn't consider one because I don't have a large family to carry around and I don't see the need for it as my life stands right now. I rarely see more than one person in crew cab trucks and large SUV's and that's sorta wasteful. I had a small truck and that filled the void quite well.
I do plan on getting something like the new Bronco next, but only the two door, since again, I don't have the need for multi seating.
 
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magicpiper

Part of the Furniture Now
Jul 9, 2018
580
1,537
MCO
Urban/suburban folks who buy trucks often just use them as cars at considerable expense. I've frequently joked about starting business roughing up the beds of suburban pickup trucks so they look well used, scrape some concrete blocks around in there, and toss some fire logs into the bed to make some dents. Seriously, in various articles about the fading of sedans and the up-tick in pickup production, I always read about the trucks costing less to build. Maybe they just cost more to the consumer so are a better revenue stream, but I have repeatedly seen statements indicating they cost less per unit to build. Maybe it is just not clearly explained. Meantime, most of the Ford, Dodge, and Chevy sedans have gone out of production, and the pickups keep rolling off the lines.
I like your idea...can call it "Urban Rustification" or "Patina". I'm sure there's someone out there with a pocket full of money wishing his shiny new truck looked like a work truck.
 
I had a 2016 Nissan Frontier and was blown away when the dealership offered me as much for it as I financed, so I traded it in for a 2019.
I use the bed for stuff and it gets great gas mileage, but to buy a car is like throwing my money away. It has no value at all once you’ve signed for it.
 

BROBS

Lifer
Nov 13, 2019
11,765
40,044
IA
people have hard ons for Jap trucks the same way people have hard ons for Dunhill pipes.

I have nothing but disdain for Asian products of any kind.

I don't even think you could drive a pickup in Japan.
 
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90% of people with a pickup truck do not need a pickup truck.

even worse is a 2wd pickup... what a waste.
No, we drive them for value, and the ease in which they drive. I love driving a truck.
I would never own a 4wd. It's the first thing to break, and they are the most expensive parts to fix. That drags down value.
 

BROBS

Lifer
Nov 13, 2019
11,765
40,044
IA
No, we drive them for value, and the ease in which they drive. I love driving a truck.
I would never own a 4wd. It's the first thing to break, and they are the most expensive parts to fix. That drags down value.
lol I'd love to see you here in the winter with that 2wd truck.
well, when our weather patterns shift you may be regretting that 2wd. ;)

 
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lol I'd love to see you here in the winter with that 2wd truck.
well, when our weather patterns shift you may be regretting that 2wd.
Moot point. The only way you'd catch me somewhere where it snows is if someone dragged my dead body up there.
If it snows here, there's no point in driving because we turn it into one big holiday.
 
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