The National Highway Traffic Safety Administration (NHTSA) has received 380 reports alleging intermittent or complete loss of power steering assistance in 2013-2016 model year Ram 1500 pickup trucks, including reports of three crashes.

In March 2016, Fiat Chrysler Automotive, now known as Stellantis, recalled 440 vehicles to address a possible contamination of the electrical power steering unit. NHTSA said complaints indicated similar failures may be occurring in vehicles outside the recall scope.

NHTSA is opening a recall query “to determine if the scope of the recall mentioned above is correct or if another defect might exist.”

Stellantis said Tuesday the company is “fully cooperating with NHTSA on this investigation.”

Many complaints filed with NHTSA described expensive or serious safety issues or very long waits for repair parts. In January, one Florida driver said the steering wheel of a 2013 Ram 1500 locked and “would not turn left or right” and was quoted a price of more than $2,000 for parts.

Another driver was driving a 2014 Ram 1500 at 55 miles per hour (89 km/h) on a busy road in California in February when their steering wheel “seized and became immobile. Using tremendous force I was able to get the truck through traffic and to the side of the road.”

A complaint filed in March by a 2015 Ram 1500 driver said due to a power steering assist failure, “the contact drove into a ditch which caused minor damages to the front end of the vehicle.”

— David Shepardson is a Reuters correspondent covering U.S. auto sector and regulatory issues from Washington, D.C.

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GM shares were trading down nearly two per cent at midday, even though CFO Paul Jacobson said demand for GM’s trucks and SUVs remains strong in the United States.

GM has been able to raise prices in the U.S. over the past two years as supply chain bottlenecks kept production in check. Going forward, Jacobson said the opportunity to boost prices much further “isn’t there. We have to be more urgent around cost-cutting.”

GM will cut production to keep inventories in check, Jacobson said. The automaker earlier this year shut down a pickup truck assembly factory in Fort Wayne, Indiana, for two weeks.

GM had set a goal of cutting $2 billion from operating costs by the end of 2024, with 30 to 50 per cent of the total being achieved this year (all figures US$). The response to a buyout program announced last month means GM will be at the higher end of that 2023 goal, Jacobson said during a presentation at a Bank of America conference.

GM will take a $1 billion charge in the first quarter, he said. The company had previously projected $1.5 billion in charges related to staff reductions.

Jacobson said GM is now allocating 75 per cent of its annual capital spending toward electric vehicle projects, which in the short term will be less profitable than the automaker’s combustion vehicles.

GM is in a good position to benefit from U.S. electric vehicle subsidies under the Inflation Reduction Act because of its investments in North American battery, raw materials and EV assembly, Jacobson said.

GM has three battery factories in North America, and will announce the location of a fourth domestic battery plant soon, he said.

Jacobson added that the company was going to have to “prioritize down” on growth businesses to focus on preserving cash. Some analysts have questioned GM’s continued investments in its Cruise robo-taxi business. Jacobson said Cruise is expanding and “executing really well.”

— Reporting for Reuters by Nathan Gomes in Bangalore and Joseph White in Detroit.

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The base variant of Ford’s electric F-150 truck now starts at $59,974, excluding shipping and taxes, up nearly 50 per cent from its starting price when launched last year (all figures US$).

The Detroit automaker resumed production of the F-150 Lightning earlier this month after recalling 18 electric trucks due to a battery-cell manufacturing defect.

Ford’s hike comes after EV maker Tesla ignited a price war this year by aggressively trimming prices.

A week earlier, Ford said its electric-vehicle business unit was expected to lose $3 billion this year, but remained on track to achieve a pretax margin of eight per cent by late 2026.

The company was not immediately available for further comment on the price increase, which was first reported by Automotive News on Thursday.

— Reporting for Reuters by Kannaki Deka and Nathan Gomes in Bangalore.

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The major Detroit pickup truck brands are sitting on growing inventories of unsold vehicles, according to Cox Automotive data provided to Reuters.

As supply-chain bottlenecks ease, the resolve among Detroit’s automakers to keep inventories tighter than before the pandemic will be tested. Automakers could have to choose between reducing output to avoid price cuts, or offering richer discounts to pump up sales volumes, dealers said.

GM dealers have over 100 days’ supply of Chevy Silverado pickups in stock, reflecting more vehicles on the ground and a seasonally slow pace of sales, according to Cox. Inventory levels are over 100 days’ supply for rival Stellantis’ Ram half-ton and heavy-duty pickups. Ford has 92 days’ worth of F-150s in stock, according to Cox data.

A GM spokesman said Cox’s numbers do not accurately reflect GM’s inventory situation. GM does not disclose detailed inventory figures. However, he said GM is acting to support its pricing strategy, which relies on keeping inventories leaner than in the past.

Stellantis said in a statement it had no downtime planned at any of its North American plants, but constantly reviewed its inventory levels and would make production adjustments as needed.

Industry consultants J.D. Power and LMC Automotive forecast on Friday that U.S. car and light truck sales for February would reach a 14.6 million-vehicle annualized pace. That is up from a year ago, but still well below pre-pandemic levels.

February sales growth was led by a 54 per cent increase in sales to fleet customers, Power and LMC said.

Overall inventories of unsold vehicles are still low, but “are still not sufficient to fulfill demand each month,” Thomas King, president of the data and analytics division at J.D. Power, said in a statement.

GM said its decision to idle the Fort Wayne, Indiana assembly plant that builds Chevrolet Silverado and GMC Sierra pickup trucks for two weeks starting March 27 was done to maintain “optimal inventory levels with our dealerships.”

Who blinks first?

GM, Ford and Stellantis dominate the U.S. large pickup market, and for the past two years have been raising prices on their trucks to record levels as supply-chain snags limited production.

Dealers contacted by Reuters said that now, some customers are waiting for better deals, or are postponing purchases because the combination of high prices and higher interest rates put vehicles out of reach. The automakers face a choice between cutting prices using bigger rebates or subsidized loans, or keeping inventories tight.

“What they’re doing is playing what I call the blink game — whoever blinks first. Especially for trucks,” said Ohio dealer Rhett Ricart, whose Ricart Automotive Group sells Ford and GM trucks at different stores.

Brad Sowers, president of Jim Butler Auto Group in Missouri, said high prices are hitting demand. However, he wrote in an email, “manufacturers do not want to flood the market and be forced to quadruple incentive spending to drive demand that will reduce their margins.”

Some discounts are showing up in the large pickup segment. Ram is offering 2.9 per cent financing for 72-month loans on certain Ram 1500 trucks.

Power and LMC said fewer vehicles were sold in February above their manufacturer suggested prices, and that the average discount rose 4.7 per cent to US$1,335 a vehicle. That is still well below pre-pandemic levels, Power-LMC said.

— Reporting for Reuters by Joseph White and Ben Klayman in Detroit; additional reporting by Kannaki Deka in Bangalore.

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The problem: How to modernize the largest combustion pickups to keep demand strong and profits flowing, without over-investing at a time when automakers need to spend on developing electric vehicles and battery factories.

At Ford, many of the newest things about the new Super Duty relate to connectivity and business productivity software that Ford hopes will generate revenue over the life of the vehicle. Ford CEO Jim Farley has stressed the importance of software-driven features and is hiring more executives with digital commerce experience.

Ford will install 5G modems in 2023 model Super Duty trucks to enable services such as driver behavior monitoring and digital paperwork systems for fleet operators. Dashboards have been reprogrammed to make it easier for companies that install specialized equipment such as hoisting arms to connect controls for their gear into the truck’s displays. Onboard scales will measure payloads and the new Super Duties will have more power plugs.

The Super Duty, General Motors’ rival Chevrolet Silverado HD and GMC Sierra HD heavy duty pickups and heavy duty versions of Stellantis’ Ram pickup are among the most profitable vehicles sold today by the Detroit Three automakers, or any rival.

Ford said the Super Duty franchise generates “more revenue than many Fortune 500 companies, including Southwest Airlines, Marriott International or Nordstrom.” Southwest reported $15.8 billion in revenue for 2021 (all figures US$).

Powered by big diesel or gasoline engines, Super Duty prices start at $41,240, but can range up to more than $100,000 for a fully loaded model.

Heavy-duty pickups such as the Super Duty and Silverado HD do dirty work in oil fields and on construction sites. But many are sold to individuals who use them to tow large trailers, and want the same connectivity and comfort features they would expect in a luxury SUV.

For now, battery electric powertrains cannot provide the same towing capability and driving range for heavy-duty pickups as combustion powerplants. Both Ford and GM are upgrading existing engines and transmissions, but not investing what it would take to develop new powertrains from scratch.

Ford on Tuesday unveiled the latest generation of the Super Duty at Churchill Downs racetrack in Louisville, not far from the factory where most Super Duty trucks are built.

Ford said Tuesday it will spend $700 million modernizing its Kentucky truck plant, and expects to hire another 500 workers at the plant to support Super Duty production.

One day ahead of Ford’s Super Duty reveal, Chevrolet outlined a list of improvements to its Silverado HD heavy pickup line, which trails the Super Duty in sales.

Chevrolet said it will now offer only a 10-speed Allison transmission on its heavy duty Silverado trucks. The 6.6-litre diesel engine’s horsepower and torque get a boost, and certain models get upgraded interiors with bigger display screens.

— Joe White is Reuters’ automotive industry correspondent in Detroit.

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Barra made her comments during the automaker’s annual shareholder meeting.

GM is pursuing a two-track strategy: Investing heavily in electric vehicles for North America, China and other markets, and funding those investments by trying to maximize profits from its North American combustion pickup truck and large SUV lineups.

Barra said GM is planning higher-priced versions of its Silverado large pickup and its large SUV models.

GM and its Detroit rivals Ford and Stellantis rely heavily on sales of large pickup trucks and SUVs for global profits. High U.S. gasoline prices in the past have undermined consumer demand for relatively inefficient models.

Nominal pump prices hit an average of above US$5 a gallon for the first time ever last week, the federal government said Friday.

GM is ramping up production of EVs. Barra said the Cadillac Lyriq electric sport utility is sold out through 2023.

In response to shareholder questions, Barra said the “clear priority” for using cash generated by its operations is to “accelerate our EV plans.” She did not rule out share buybacks or other approaches to returning cash to shareholders.

GM still expects to increase production this year by 25-30 per cent, despite continuing pressure on semiconductor supplies globally. Barra said GM is working to redesign vehicles to reduce the number of processors required by 95 per cent.

Barra serves as GM’s board chair and CEO. GM shareholders overwhelmingly rejected a proposal to separate those roles.

— Joe White is a Reuters global automotive sector correspondent in Detroit.

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The plant will produce cathode active material (CAM) for vehicle batteries at Becancour, Que.

Cathodes are the most complex and costly chemical component of an electric vehicle battery, “represent(ing) about 40 per cent of the cost of every EV battery cell,” Scott Bell, GM Canada’s president and managing director, said in a news conference. “We plan to have capacity by 2025 to build a million EVs in North America.”

The plant’s construction will begin immediately and the goal is to have it running by 2025. Once completed, it will create an estimated 200 jobs, according to a statement. GM aims to produce light vehicles that run exclusively on electricity by 2035.

The CAM produced at the plant will be used to make GM’s Ultium batteries that will power the company’s EVs, such as the Chevrolet Silverado EV, GMC Hummer EV and Cadillac LYRIQ.

GM’s Ingersoll, Ont. factory will launch EV production later this year, Bell said.

Both the federal and Quebec provincial governments are working with GM and POSCO, the companies said, though details were not released.

Rich in key materials for EV battery production — including lithium, graphite, cobalt and nickel — Canada has been wooing battery makers to safeguard the future of its car manufacturing industry as the world seeks to cut emissions.

GM’s is the second CAM plant announcement for Becancour in less than a week. On Friday, German chemical company BASF said it was planning one there, too.

BASF said its facility at Becancour will produce and recycle CAM, starting in 2025, to serve electromobility markets in Canada, the U.S. and Mexico, according to a statement.

BASF last September predicted its battery materials revenue would reach more than 1.5 billion euros (C$2.1 billion) by 2023 and more than seven billion euros by 2030 as electric vehicle production surges.

BASF, in partnership with Japan’s Toda Kogyo Corp., already produces CAM at two locations in North America — in Ohio and Michigan — including nickel cobalt aluminum oxide and nickel cobalt manganese oxide.

Federal Industry Minister Francois-Philippe Champagne said that Becancour will become a hub for the country’s EV battery “ecosystem,” linking Quebec to Canada’s automotive sector heartland in Ontario.

Ontario is geographically close to U.S. automakers in Michigan and Ohio, and GM, Ford and Stellantis have all announced plans to make electric vehicles at factories in Ontario.

More “good news” is on the way, Champagne said, adding that there were “very live discussions” under way about building a battery factory in Canada.

“Starting from this announcement, we will be integrated in the global supply chain for cars in North America,” he said.

— Reporting for Reuters by Aishwarya Nair in Bangalore, Steve Scherer in Ottawa and Ludwig Burger in Frankfurt.

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The changes come a day after the Detroit automaker warned a chip shortage would lead to a decline to vehicle volume in the current quarter.

Production at factories in Michigan, Chicago and in Cuautitlan, Mexico will be suspended. In Kansas City, production of F-150 pickup trucks will be idled while one shift will run for production of its Transit vans.

The Detroit automaker will also run a single shift or a reduced schedule at its factories in Dearborn, Kentucky and Louisville, while removing overtime at its Oakville factory in Ontario. The Oakville plant currently makes Edge and Lincoln Nautilus SUVs.

All changes will be in place for the week beginning Feb. 7.

Ford shares slumped on Friday, after the automaker posted smaller-than-expected quarterly income and forecast a slower recovery in 2022 vehicle production than rival General Motors.

However, the company said it expected vehicle volume to improve significantly in the second half.

— Reporting for Reuters by Hyunjoo Jin and Ben Klayman.

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Ford’s announcement comes a day ahead of rival General Motors’ public introduction of the Chevrolet Silverado electric pickup, which is slated to go on sale in early 2023.

The Silverado E will be unveiled by GM CEO Mary Barra on Wednesday in a remote session connected with the annual Consumer Electronics Show in Las Vegas.

Shares of both U.S. automakers jumped on Tuesday. In afternoon trading, Ford was up nearly 12 per cent to $24.29, boosting its market cap to $97 billion (all figures US$). GM was up 7.6 per cent to $65.83, with its market cap climbing above $95 billion.

Ford CEO Jim Farley in early December told CNBC host Jim Cramer that Ford had to stop taking reservations for the 2022 Lightning “because we had so many.”

Ford originally had production capacity for 70,000-80,000 Lightnings. Farley said in the December interview that Ford aimed to double that over the next two years at the company’s Rouge factory near its Dearborn, Mich. headquarters.

Ford also is planning to triple annual production of its popular Mustang Mach-E electric crossover to more than 200,000 by 2023, to meet better-than-anticipated demand.

The automaker said it will have the annual capacity to build 600,000 electric vehicles globally within 24 months, when it aims to become “the clear No. 2 electric vehicle maker in North America” behind Tesla, which last year sold more than 900,000 EVs.

The 2022 F-150 Lightning will have a starting price of $39,974, and is being aimed at both retail and commercial customers.

— Paul Lienert is a Reuters correspondent covering transport automation and electrification from the Detroit area.

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