One of my favorite economic rules is simple. Whenever a progressive scold blames capitalism or private companies for a "market failure"—i.e., the inefficient or seemingly inexplicable distribution of goods or services in the economy—it's best to dig a little deeper. Almost always, some government regulation, tax, or law is largely to blame.
One recent example involves the proliferation of mega-pickup trucks. It doesn't take scientific analysis to notice these vehicles, which account for more than20 percent of all passenger vehicle sales in the United States, have gotten huge. I recently parked my 2012 full-size V-8 RAM next to a new model in a parking lot and mine looked like a toy. They've gotten pricey, too. I paid $19,000 for mine brand new—and the average full-size pickup now approaches $60,000.
"Driving a large pickup or SUV increases the likelihood you'll kill or injure someone; its thirsty power plant… spews more air pollution and greenhouse emissions," according to a reportlast year in Bloomberg. This has, of course, led to calls for more regulation. The article focused on a proposal by the District of Columbia to impose a $500 annual fee on trucks that exceed 6,000 pounds. The European Union has proposed bans on U.S.-style trucks.
I generally don't care what other people drive, but critics aren't entirely wrong to point out the ill effects of mega-truck proliferation—or the oddity of using a 6,500-pound, 22-foot-long vehicle mainly as a grocery-getter. Pedestrian deaths have reached 40-year highs and the Insurance Institute for Highway Safety researchshows that as trucks and SUVs have gotten taller and heavier, they likewise have posed greater risks to those outside the vehicle.
But before we engage in a regulatory frenzy, it might be wise to assess how we reached this point. Part of it is due to consumer demand and manufacturer marketing, but that's an insufficient explanation. I live on an acreage and need a truck for routine work duties and hauling a trailer. The anti-car zealots seem to think we all should get around on buses andbicycles, but the bigger question is why there aren't many smaller, affordable truck options.
The automotive media has been abuzz with stories about a new Toyota pickup truck (IMV 0) that, unlike even the smallest pickups available in the states, features a large and useful bed. It's relatively light and fuel efficient. It can be configured in myriad ways, including a flatbed. According to Road and Track, it was developed in Thailand, where nearly half of all new vehicle sales are pickups. It is a bare-bones affair, but—get this—will only cost around $10,000.
This pickup has an authentic"Road Warrior" vibe that, in my humble opinion, is much cooler than the "tries too hard and costs too much" Tesla Cyber Truck. Don't head to your Toyota dealership anytime soon, as it won't reach U.S. markets, although it will be sold in Mexico. I'm guessing even a $20,000 U.S. variant would sell like proverbial hotcakes, but U.S. regulations, tariffs, and other government-imposed hurdles won't allow it.
One reason U.S. pickups have dominated the marketplace dates back 60 years. "When the European Economic Community raised tariffs on imported chicken from the U.S., President Lyndon Johnson retaliated with a 25 percent 'chicken tax' on imported trucks and other items,"wrotethe Cato Institute's Daniel Griswold. It was aimed at Volkswagen, which used to sell great little pickups. It no longer sells them here, but "the tariff remains in place out of political inertia." It's no surprise these massive taxes (and tariffs are simply a form of taxation) lead to market distortions. Don't blame manufacturers (except for their lobbying to achieve market protections) when government is the culprit.
Basically, U.S.tariffsundercut the competition from foreign producers who specialize in smaller pickup trucks. American companies have always dominated the large truck market, so the lack of competitors helped them cement their dominance. Speaking of unintended consequences, the federal government's bizarre emission rules also led to the public's preference for larger SUVs and trucks.
Regulations promulgated during the Obama administration required cars "to meet tougher emissions and mileage targets than light trucks—a category that includes pickups and many so-called crossover vehicles that look like SUVs but have the mechanical underpinnings of cars," according to a 2020 Reuters report. As a result, car makers offered more vehicles that conformed to less-rigid light-truck standards.
The panoply of regulatory rules, labor standards, tariffs, and taxes also drive up manufacturing costs, which means car makers need to maximize profit per unit. That offers more incentive to push the priciest vehicles possible. Often, Detroit is fine withadditional regulations, which cuts out upstart and foreign competitors. That's not market failure, but government failure. So those seriously concerned about massive pickups should consider less regulation rather than more of it.
This column was first published in The Orange County Register.
FAQs
Basically, U.S. tariffs undercut the competition from foreign producers who specialize in smaller pickup trucks. American companies have always dominated the large truck market, so the lack of competitors helped them cement their dominance.
Why are trucks so huge now? ›
For half a century, a litany of federal policies has favored large SUVs and trucks, pushing automakers and American buyers toward larger models. Instead of counteracting car bloat through regulation, policymakers have subtly encouraged it. That has been a boon for car companies, but a disaster for everyone else.
Why are trucks allowed to be so big? ›
Apparently it has to do with fuel economy. The fuel efficiency requirements are tied to the square feet footprint of the truck. The smaller- the higher, the larger- the less. So instead of making engine more efficient to meet requirements they make the truck bigger.
Why is America obsessed with trucks? ›
It's not just about utility, but also about identity. Across the U.S., these trucks symbolize strength, freedom, and the rugged individualism that's woven into the fabric of the country.
Are pickup trucks bad for the environment? ›
According to the Union of Concerned Scientists, heavy duty vehicles, which encompass pickup trucks, delivery trucks, tractor trailers, buses, garbage trucks and cement mixers, generate over 25% of global warming emissions from the transportation sector.
Why are there so many pickup trucks in the US? ›
These trucks are considered a 'cool' vehicle in the United States. They are not positioned as a mere work vehicle, but as a large, comfortable, aggressive and powerful means of transport. This positioning comes after years of introducing sportier, sleeker versions that appeal to more consumers.
Why are Americans' trucks so big? ›
Because making light trucks held to lower environmental standards was more profitable than building small clean cars, automakers marketed big models, including SUVs, enthusiastically. They portrayed them as quintessentially American, embodying freedom, strength and adventurousness.
Why trucks are banned in California? ›
It is expected to prevent 1,287 premature deaths and provide $13 billion in public health benefits. The Advanced Clean Fleets rule, adopted in 2023, would ban fossil fuel-powered cargo trucks registering to serve California ports and railyards.
Does the chicken tax still exist? ›
In this time, European nations began imposing tariffs on American poultry imports. In retaliation, the U.S. imposed a 25% tariff on potato starch, dextrin, brandy, and light trucks. Today, the tariff on light trucks is the only element of the Chicken Tax that still remains.
What is the 40 foot rule in California? ›
In addition, legal trucks in California must not exceed a kingpin-to-rear-axle (KPRA) length of 40 feet. See Quick Guide: Truck Lengths & Routes. Weight: The maximum overall weight limit is 80,000 pounds. The California Vehicle Code (CVC) also specifies maximum axle weight limits as well.
The Ford F-Series reaches an amazing 48-year streak in 2024 as the most popular truck in America. Ford F-Series trucks are also the most popular vehicle including cars in the US, not just most popular truck, for nearly 40 years.
What state uses the most trucks? ›
California has a higher population of pickup trucks than any other state. There are roughly 4.7 million pickup trucks in the state of California. One major reason California needs its trucks is because of construction. California has a huge population of people and it also has a big economy.
Why are there no European trucks in USA? ›
The US used cabovers before vehicle length rules were liberalized, and thats why we don't anymore, drivers prefer conventional trucks, the ride better, largely handle better, and are safer for the driver.
What trucks pollute the most? ›
Tractor-trailers, delivery vans and heavier-duty pickup trucks also emit 45% of the sector's harmful nitrogen oxide emissions and 57% of deadly fine particulates, known as PM 2.5. Both are linked to premature death and chronic illnesses including heart disease, lung cancer, stroke, and childhood asthma.
Do pickup trucks last longer than cars? ›
Do work trucks wear out faster? While you might worry that work trucks wear out faster, pickup trucks last longer than cars on average. They are designed to withstand more wear and tear, so you don't have to worry about handling heavy-duty jobs.
Do trucks waste more gas than cars? ›
While the country has made major strides in improving vehicle fuel economy and promoting electric and hybrid models, the public can't quite shake its love for pickup trucks and SUVs. Unfortunately, those beloved vehicles are well-known gas guzzlers with significantly worse fuel efficiency than smaller car models.
Why have vehicles become so large? ›
Car shapes and sizes have steadily ballooned since the late 1970s. The reasons for this increase are various and complex. The addition of safety features like lateral and frontal airbags and "crumple zones" required more space, while consumers began to seek out luxury, exotic and import vehicles.
Why are trucks so high right now? ›
There's also the power options, advanced safety systems, technological advancements, and the inclusion of various luxury features. These factors combine to make trucks one of the most expensive vehicle categories on the market today.
Why are haul trucks so big? ›
It is a class of models of large, heavy-duty vehicles designed for transporting materials in construction, mining, and quarrying operations. It is built to carry various payloads and transport heavy loads over long distances on rough terrain.
Why are trucks getting smaller engines? ›
However, as concerns over fuel economy and overall environmental friendliness became important considerations--especially to politicians—the pressure was placed on auto manufacturers to start getting more power out of smaller engines.
