Small pickups: to keep or not to keep.

U.S automakers such as Ford Motor Co., and General Motors Co. have continuously revived since the 2008 national depression. Now they face the decision on the fate of their small pickups industry, which buyers have left for dead and regulators may try to revive. The two companies have carried out executive decisions that showed their split decisions. Ford Motor Co. is ending their small pickups manufactures by terminating U.S. sales of Ranger, the former mid-size pickup leader, while on the other end, General Motors Co. has showed commitment on expending its Chevrolet Colorado compact truck manufactures. GM has decided to expand its Colorado franchise past the 2012 model year and old models are continuously being replaced. Both decisions are justified with different reasoning. Ford believes that it will not only be able to maintain but expand its share of full-size trucks by concentrating its resources on the F-series while GM is betting on buyers coming back to the mid-size pickup trucks if gasoline prices stops rising. If gasoline prices keep rising, customers would prefer full size trucks because their midsize counterparts cost almost as much without much boost in fuel economy. With the recent depression and continuous rise of gas prices, customers are certainly less attracted to small pickups; however, it may be very possible that gas price would drop as gas industries continue to expand and that would bring profit to GM. In this case, Ford has taken a safer pass than GM.

 

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