We’re on a bit of a midsize truck kick here lately, mainly because VW is contemplating bringing a midsize offering to the U.S. and the new Ranger and Jeep Scrambler are eventually going to go on sale. It’s a hot time for midsize trucks, but people are wondering if the market can handle so many different truck offerings.
To be understand how strong we think the midsize truck segment is, we should look at the sales success of the Colorado.
It’s not the best-selling midsize truck; that’s Tacoma territory. But it is a strong seller and was a truck that disappeared for awhile as a new version was developed and rolled out.
We’ve compiled the sales data from January 1st, 2010 through March of 2018. As you can see, there was a significant period where sales declined. That decline was selling off inventory of the previous-generation of the truck, and then the down period before General Motors decided to replace the truck with a new model and launch it.
What I want you to focus on here is the trendline. Truck sales are cyclical throughout the year, as evidenced by this chart, but the trendline shows the way sales are going. Obviously there’s solid growth for the Colorado.
Part of that is due to coming out of the Great Recession and building sales from there. But the segment as a whole has been growing. Interestingly, and what the trendline does show, is that when the Colorado returned to the market, it picked up right where it left off if sales would’ve continued straight through.
Obviously they lost sales when the truck wasn’t being made, but the truck didn’t miss a beat coming back to the market and growing rapidly with the segment. The Colorado didn’t suffer any overall repercussions — yes there are financial for not being on sale — by stepping away and returning.
Does that mean any midsize truck returning or coming to the segment will be a success? No. But the growth signals are there that people want this type of vehicle.