Switching from the current generation Ford F-150 pickup truck to the all-new aluminum-built model will be quite expensive; we’re not talking only about model development and retooling costs, but also about losing production of 90,000 current-generation F-Series trucks.
Stopping production is necessary to allow time for the retooling of plants for the new aluminum-bodied truck. Obviously, plant shutdowns will reduce sales, market share and profits in the lucrative pickup truck market, said Joe Hinrichs, Ford’s president of the Americas. However, Ford is building up inventory of the F-Series and expects it to remain the best-selling vehicle line in the U.S. this year.
“It’s a one-time hit that we have to deal with on the production side to convert the factories,” Hinrichs told Bloomberg. “Remember, we get paid on wholesales and revenue – 90,000 F-150s – I won’t tell you what that really means, but it’s a lot,” he added.
The redesigned F-150 spearheads Ford’s model offensive, with the company rolling out 23 new models worldwide this year, including 16 in North America. Consequently, profits and margins will decline this year.
The F-Series makes up one in five of Ford’s U.S. sales. The all-new model will be as much as 700 lbs (318 kg) lighter than its steel predecessor and is expected to close in on 30 mpg (7.8 l/100 km) in highway driving. Ford will offer the F-150 with a 2.7-liter turbocharged engine, the smallest displacement unit in its truck lineup.
By Dan Mihalascu
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