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Volkswagen to Speed Up Midsize Pickup Vehicles Race
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Automakers across the globe are taking the midsize pickup segment very seriously. The changing preference of U.S. consumers toward light trucks, including pickups, SUVs and crossovers, has spurred automakers to drastically reorient their production strategies. Auto majors are also gradually doing away with the unprofitable vehicle models from their lineup.
Per Automotive News, German vehicle behemoth Volkswagen AG is set to scale up its position in the midsize pickup segment with a U.S.-made pickup, which is likely to be manufactured in Tennessee. The concept vehicle, an offshoot of the Atlas large crossover is likely to be launched at the upcoming New York auto show. Volkswagen’s recent bid to expand its presence in the pickup segment, is no exception from what the other auto biggies are doing.
Race Picks Up
Although U.S. auto sales declined slightly in 2017 from 2016, automakers sold 2.8 million full and mid-size pickup trucks in 2017, up 4.8% year over year. Out of the total auto sales, the share of pickup truck is currently around 16.4%.
In recent times, the U.S. midsize pickup segment has been dominated by the Toyota Tacoma, the pickup truck manufactured in the United States by Japanese automobile manufacturer Toyota Motor Corporation (TM - Free Report) and Chevrolet Colorado, marketed by American automaker General Motors Company (GM - Free Report) .
However, the new Volkswagen pickup vehicle will be use MQB (Modularer Querbaukasten) architecture and compete with strong rivals such as Honda Ridgeline, the all-purpose pickup truck produced by Honda Motor Co., Ltd. (HMC - Free Report) . South Korean auto giant The Hyundai Motor Company is also set to introduce a new pickup truck, to be built on the Santa Cruz concept. After a gap of eight-years, Ford Motor Company (F - Free Report) has taken the decision to reenter the midsize pickup segment with the 2019 Ford Ranger. All these efforts indeed make the pickup segment fiercely competitive.
Volkswagen Picking Up Too
According to the Automotive News Data Center, in 2017, the share of light trucks in Volkswagen’s sales was only 23%, whereas light vehicles sales accounted for 64% of the overall sales figure.
In fact, severe financial losses in the United States due to less profitable units and emissions violations, prompted the German automaker to rethink its U.S. strategy. Now, the company is aiming at designing models keeping in mind local tastes and preferences. The recent plan of Volkswagen, the biggest carmaker in the world in terms of sales, to float new pickup models is likely to add more zing to this already intense market.
Currently, while both Toyota and General Motors sport a Zacks #1 (Strong Buy), each of Volkswagen and Honda carries a Zacks #2 (Buy). Ford has a Zacks #3 (Hold).
Volkswagen, Toyota, General Motors, Honda and Ford have an expected long-term growth rate of 18.7%, 6.1%, 8.4%, 5.2% and 10.7%, respectively.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
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Volkswagen to Speed Up Midsize Pickup Vehicles Race
Automakers across the globe are taking the midsize pickup segment very seriously. The changing preference of U.S. consumers toward light trucks, including pickups, SUVs and crossovers, has spurred automakers to drastically reorient their production strategies. Auto majors are also gradually doing away with the unprofitable vehicle models from their lineup.
Per Automotive News, German vehicle behemoth Volkswagen AG is set to scale up its position in the midsize pickup segment with a U.S.-made pickup, which is likely to be manufactured in Tennessee. The concept vehicle, an offshoot of the Atlas large crossover is likely to be launched at the upcoming New York auto show. Volkswagen’s recent bid to expand its presence in the pickup segment, is no exception from what the other auto biggies are doing.
Race Picks Up
Although U.S. auto sales declined slightly in 2017 from 2016, automakers sold 2.8 million full and mid-size pickup trucks in 2017, up 4.8% year over year. Out of the total auto sales, the share of pickup truck is currently around 16.4%.
In recent times, the U.S. midsize pickup segment has been dominated by the Toyota Tacoma, the pickup truck manufactured in the United States by Japanese automobile manufacturer Toyota Motor Corporation (TM - Free Report) and Chevrolet Colorado, marketed by American automaker General Motors Company (GM - Free Report) .
However, the new Volkswagen pickup vehicle will be use MQB (Modularer Querbaukasten) architecture and compete with strong rivals such as Honda Ridgeline, the all-purpose pickup truck produced by Honda Motor Co., Ltd. (HMC - Free Report) . South Korean auto giant The Hyundai Motor Company is also set to introduce a new pickup truck, to be built on the Santa Cruz concept. After a gap of eight-years, Ford Motor Company (F - Free Report) has taken the decision to reenter the midsize pickup segment with the 2019 Ford Ranger. All these efforts indeed make the pickup segment fiercely competitive.
Volkswagen Picking Up Too
According to the Automotive News Data Center, in 2017, the share of light trucks in Volkswagen’s sales was only 23%, whereas light vehicles sales accounted for 64% of the overall sales figure.
In fact, severe financial losses in the United States due to less profitable units and emissions violations, prompted the German automaker to rethink its U.S. strategy. Now, the company is aiming at designing models keeping in mind local tastes and preferences. The recent plan of Volkswagen, the biggest carmaker in the world in terms of sales, to float new pickup models is likely to add more zing to this already intense market.
Currently, while both Toyota and General Motors sport a Zacks #1 (Strong Buy), each of Volkswagen and Honda carries a Zacks #2 (Buy). Ford has a Zacks #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Volkswagen, Toyota, General Motors, Honda and Ford have an expected long-term growth rate of 18.7%, 6.1%, 8.4%, 5.2% and 10.7%, respectively.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>