Automakers are pushing new investment and job growth in the U.S.

Detroit automakers are pushing new investment in U.S. production of trucks, crossovers and SUVs to tap into the higher profit margins these vehicles yield. They make an awful lot of money. Automakers spend about the same amount to make a vehicle, whether it’s a crossover or truck or sedan. 

Yet a full-size pickup truck has an average transaction price of almost $40,000. A large SUV has a transaction price of $58,000 and even a mid-size crossover moves off the dealership at nearly $35,000. But the average transaction price of a compact sedan is less than $19,000 and a mid-size family car is less than $22,000. Analysts say that automakers earn about $1,500 to $2,000 for a passenger car. It’s obvious that the trucks and SUVs are driving the profitability of the automakers. That’s why automakers are doubling down on brisk-selling trucks and SUVs. Read more