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The Ford (NYSE: F) F-150 has been one of the best selling vehicles in U.S. history. It is one of the most profitable products that the company produces.
A new version of the F-150 is one the way. According to Reuters, "the automaker, which has said its turnaround efforts hinge on exciting new products, is counting on the new trucks to help stem its protracted decline in U.S. sales."
Even if the truck has very little competition, it would not be likely to sell well. Pickups consume a great deal of gasoline. High fuel prices make the F-150 unattractive from that standpoint. And, Americans will probably defer new car buying due to tight credit and a bad economy.
In addition, Toyota (NYSE: TM) has entered the full-sized pickup market with the Tundra, and Chrysler has been in the business for year. GM (NYSE: GM) has a large line of light trucks. Each of these companies want the profits that come from selling a lot of pickup trucks.
If the F-150 is critical to Ford's fortunes, the company has a problem.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
1-12-2008 @ 10:57PM
Tyrant of WallStreet said...
I have to agree with you, if the F-150 is a big part of Ford's turnaround, then Ford will have a difficult time doing so. I do not think this is the case however. Ford does have good products for the coming year like the solid Taurus and Focus models as well as the Mustang models. The selling of the Jag and Land Rovers will also come in handy I fell.
1-13-2008 @ 7:54AM
al coholic said...
The Tundra has been a bust too. Toyota can't sell them even wilth huge cash rebates.
The new, more realistic EPA mileage stickers ae part of the problem. When you look at a sticker that says 16mpg you have to wonder why it is so necessary for the average pickup owner to blast off in a 380 hp guzzler. It just shows you how out of touch manufacturers are.
Not many people tow 12,000 pounds on a daily basis. The average pickup owner may tow a small boat or tralier and just doesn't need a giant torque machine.
Ford, here's some free advice. Design a small diesel engine (or maybe a direct fuel injection gas engine) that sips fuel, doesn't go from zero to sixty in 7 seconds, but can still tow 3000lbs or so. Then streamline the aerodynamics to help with fuel mileage, and don't feel like the inside has to be so luxurious we can't afford it. It is, after all, a truck.
Millions of Joe Average guys would buy that truck who wouldn't even consider your super expensive bohemith F-150, which, with a crew cab takes the width of three city streets to make a u-turn.
I was looking at an old 1965 Ford pickup with a six cylinder engine, three speed on the column the other day and it made me realize, "That's all most people really need."
1-13-2008 @ 9:16PM
Ford First said...
I own a 2004 Ford F-150 which replaced my 1997 F-150 that I sold four years ago with 225,000 miles on it (and that truck is still on the road). The stylish and roomy interior, as welll as it's smooth (non-truck) ride makes my hour long drive to work not only very comfortable and enjoyable, but well worth the cost of the fuel. The 4X4 option also allows me the gratification of passing by all the tin-can TOYotas stuck in the the ditches and snow banks. By the way, Al Coholic, when it's time to replace this truck, it'll only be with another Ford product and not a rice rocket ricksha bound for a pothole!
1-13-2008 @ 9:33PM
al coholic said...
How did you get the idea from my post that I am anti-Ford. I am merely bemoaning the fact that all truck makers are ignoring the market for a simple truck that gets good gas mileage and doesn't cost an arm and a leg.
1-14-2008 @ 2:32PM
jpdr1100 said...
Last summer/fall my local dealers were selling full sized Chevy and Ford pickups, new, for $12999.
Strip them all you want, you can't get a truck any cheaper.
Gas mileage? Wait for the new small diesels coming in 2010.
1-14-2008 @ 2:31PM
jpdr1100 said...
Toyota sold just under 200,000 Tundras last year. Small potatoes to Ford, but a fair number of those buyers just might have bought an F150 had they not gone Tundra.
As for the huge size of today's "full sized" pickups: buy a Ranger/Colorado/Dakota/Tacoma.....
1-14-2008 @ 8:22PM
Uncle Sam said...
Give the American truck owner a " tweener " size larger than a Ranger yet smaller than an F-15O. Also in this truck why can't Ford enigineer it with front wheel drive instead of rear wheel drive. Most of us don't need nor want to pay for 4-wheel drive. Suspect they haven't offered because of the chance to " up sell " the 4 wheel drive feature to macho drivers who feel powerful behind the wheel of the behemouths. Don't tell us they can't engineer such a truck either. They have it in large SUV's so it is doable !
1-15-2008 @ 2:20PM
Gumby said...
Ford is now $6 a share. Why are all of you attending the dog and pony shows?? Just buy Ford stock and get it back on its feet first...
1-19-2008 @ 6:26PM
Allen said...
Ford has a truck that will tow about 3000 pounds and its called the ranger. It has the best gas mileage, and tows what you need it too. If people dont think that people dont tow 12000 pounds you should get a reality check and dont buy the f150 get a ranger!
2-01-2008 @ 9:18PM
Allen said...
also, uncle sam, a front wheel drive truck is not a great idea with all the weight in the back, and if your not planning to put much in there, then get a sport trac. THINK A LITTLE GUYS!