Honda’s new Ridgeline, with much more conventional styling, could do far better than its previous entry in the U.S. pickup segment.
Published: January 15th, 2016
Writers: Doron Levin
Honda this week took the wraps off the new-generation Ridgeline, a medium-sized pickup truck that actually looks like a pickup truck.
Indeed, that Honda Ridgeline turned out to be such a flop that the automaker discontinued it altogether two years ago. But the new Ridgeline, with much more conventional styling, could do far better. It goes on sale later this year.
The top three Japanese automakers collectively have secured only a tiny chunk of the U.S. pickup market, the only important automotive category in which the Japanese industry hasn’t become prominent. Yet Honda, Toyota and Nissan keep plugging away, attracted by the chance to partake of outsize profit margins from the bigger vehicles.
Ford, General Motors and Fiat Chrysler Automobiles each earn a sizable percentage, if not a majority, of their profits from full-size and medium-size pickups. They’ve dominated the segment because they’ve devoted their best engineering and marketing talent into designing highly rated, exceptionally able models, and because their customers tend to be highly loyal, returning again and again to the Ford, Chevrolet or Ram brands.
Honda, a conservative automaker that has never — that’s correct, never — posted an annual loss, nevertheless sees potential in the U.S. pickup market, as do its two Japanese rivals. Last year, Toyota introduced a new version of its popular Tacoma medium-size pickup, and Nissan has a new generation full-size pickup coming later this year.
Still, within the full-size category, where Honda doesn’t have an entry, Toyota and Nissan together captured less than 10% of the U.S. market last year.
In the midsize pickup category, which is a fraction of the full-size segment, Toyota and Nissan Frontier dominate with more than half the sales, but GM is coming up fast with its Chevrolet Colorado and GMC Canyon models. Ford has said it’s reviving its midsize Ranger in a few years.
The pickup truck is an idiosyncratic, fuel-hungry (compared to cars) facet of American culture. Nowhere else in the world is there consumer affection for such vehicles as in North America, which has probably been a lucky thing for the U.S. auto industry.
Commentary
This is a bit unconventional for a business article. But I thought it was important to include here because it describes a market for pickup trucks in the United States. The article talks about how the Honda Ridgeline was not popular and flopped in comparison to its previous midsize pickup attempts. The styling was attributed to the flop. The author goes on to talk about how Honda’s competitors like Toyota and Nissan are taking up the full size pickup market in the states. So, if Honda can get their midsize pickup design right, they may have more success with the U.S. consumers.
