Followers | 174 |
Posts | 130696 |
Boards Moderated | 7 |
Alias Born | 07/02/2005 |
Wednesday, November 12, 2014 10:21:06 AM
Ford is using the metal almost exclusively in body of the 2015 version of its best-selling F-150 pickup, which starts arriving at dealerships next month. Barnett is already answering customers' questions about the truck. And he's updated his repair shop not only for the F-150, but in anticipation that other Ford brands such as the Mustang will eventually make the switch from steel.
But, just in case, he ordered some extra steel-bodied 2014 pickups.
"There will be some people who won't want to change for a while," says Barnett, who says pickups make up around half of the annual sales at his dealership in rural Winchester.
Ford is doubling down on aluminum, which is lighter — and more expensive — than steel but just as tough. The new truck is the company's response to customers' requests for a more fuel-efficient and nimbler pickup. Ford hopes the advantages outweigh customer doubts about the durability of aluminum or potential repair costs for the pricier metal.
It's a big risk. So far this year, one out of every three vehicles Ford sold in the U.S. was an F-Series pickup. Morgan Stanley estimates F-Series trucks account for 90 percent of Ford's global automotive profit.
On Tuesday, it kicked off production of the new truck at its Dearborn Truck Plant, four miles from the company's headquarters.
"Yeah, this is a risk, but it's one well worth taking." said Bill Ford, the company's executive chairman, as he stood alongside the assembly line. "For our customer, this is a big, big leap forward."
The trucks have been the best-selling vehicles in the U.S. for 32 straight years; last year, Ford sold nearly 100,000 more full-size pickups than General Motors.
Aluminum isn't new to the auto industry, but this is the first time it will cover the entire body of such a high-volume vehicle. Ford made 647,697 F-150 pickups at its two U.S. plants last year; that's one every 49 seconds.
If Ford's bet pays off, it could pad its lead in the lucrative truck market. More importantly, aluminum "future proofs" the truck — and the company — in an era of rising fuel economy standards, says Karl Brauer, a senior analyst with Kelley Blue Book.
Ford will announce the truck's fuel economy figures later this month. That could determine if it steals customers away from the Silverado or Ram. Truck buyers are among the most loyal in the auto market.
Ford says the 2015 truck will have from 5 percent to 20 percent better fuel economy that the current version. A figure in the higher end of that range might sway some buyers, says Jesse Toprak, chief sales analyst for the car buying site Cars.com.
"If I own a business and if I look at the numbers, and it's going to add up over time, then I'll think twice about it (switching brands)," Toprak says.
Ford has the disadvantage of introducing the truck as gas prices are hitting a four-year low, with the national average now below $3 a gallon. But CEO Mark Fields says even when gas prices were $1.25, truck buyers still asked for better fuel economy.
"These vehicles are not just vehicles to our customers. They're tools to help them do their job," Fields says. "This thing has to deliver."
Toprak believes that Ford's biggest risk with the truck is simply the unknown — truck buyers don't know how an aluminum body will hold up over time.
When Ginny Pruet, who runs a wedding rental business in Rockwall, Texas, decided to trade in her 2012 F-150 to get one with a backup camera, she chose a 2014.
Pruet, 54, has checked out the 2015 version at auto shows. She is impressed by the new truck's bells and whistles, like the movable LED spotlights on the side mirrors. But she's concerned that aluminum is untested and not worth the extra cost. Ford has raised the price of the base model by $395 to $26,615, including destination fees. A fancier King Ranch version costs $3,615 more.
"We'll just hold off and find out the reaction to it," she says.
As with any new vehicle, marketing will be key. Toprak says Ford should promote a key advantage of an aluminum body: It won't rust.
John Krafcik, the president of the car buying site TrueCar.com, points to the truck's capability. The F-150 sits on a high-strength steel frame that's carrying less weight from the truck, so it can carry more cargo and haul heavier trailers. The new F-150 can tow up to 12,200 pounds compared with 12,000 for the Silverado and 10,500 pounds for the Ram.
Ford is spending more than $1 billion to retrofit both assembly and metal stamping plants. The company also helped dealers such as Barnett with the $30,000 to $50,000 cost to retrofit their repair shops, says spokeswoman Elizabeth Weigandt.
Ford took steps in the design of the truck that minimize repair costs, Weigandt says. Because of the way the aluminum is sectioned, for example, the roof doesn't have to be removed to repair to the B-pillar, which sits just behind the front doors.
Jason Cannon 34, a writer who lives in Demopolis, Alabama, says he wouldn't drive anything but an F-150.
He would like to get better fuel economy than the 15 to 16 mpg he averages driving his 2006 pickup around town. That's why he's eyeing the 2015 F-150 with the 2.7-liter EcoBoost engine, a V6 that could give him similar horsepower to his current V8.
Cannon says he wouldn't hesitate to buy aluminum.
"This is an F-150. The technology is proven," he says. "This is the same song, just a different verse."
___
Recent F News
- Alphabet CEO’s Billion-Dollar Wealth, Microsoft’s $1.7B Indonesia Investment, and More News • IH Market News • 04/30/2024 11:58:40 AM
- Southwest Shares Tumble 9.6% Post $231 Million 1Q Loss, AstraZeneca Surges on 19% Annual Increase, and More on Earnings • IH Market News • 04/25/2024 11:52:46 AM
- Customers Find Appeal in ‘Freedom’ of Ford Powertrain Choices, Contributing to Solid Q1 Results, Setting up Strong Full Year • Business Wire • 04/24/2024 08:05:00 PM
- U.S. Futures Display Mixed Results Amid Earnings, WTI and Brent Crude Prices Dip in June Futures Trading • IH Market News • 04/24/2024 11:31:20 AM
- Despite Record EV Production Numbers, Shortage of Battery Metals Looms • PR Newswire (US) • 04/22/2024 03:24:00 PM
- Despite Record EV Production Numbers, Shortage of Battery Metals Looms • PR Newswire (US) • 04/22/2024 03:23:00 PM
- Despite Record EV Production Numbers, Shortage of Battery Metals Looms • PR Newswire (Canada) • 04/22/2024 03:23:00 PM
- Apple to Invest $250 Million in Singapore Expansion, Oracle Commits $8 Billion to Japan Infrastructure, and More News • IH Market News • 04/18/2024 11:11:52 AM
- Paramount Global Board Shrinks, Morgan Stanley Faces Regulatory Probe, and More News • IH Market News • 04/12/2024 11:05:29 AM
- Costco Increases Dividend by 14%, Meta Introduces ‘Artemis’ AI Chip, and More News • IH Market News • 04/11/2024 11:24:54 AM
- Volkswagen, BMW, Ford, and Mercedes-Benz: Automotive Industry Updates for Q1 • IH Market News • 04/10/2024 11:56:37 AM
- Apple Terminates 614 Employees, Disney Unveils June Crackdown on Password Sharing, and More Updates • IH Market News • 04/05/2024 11:38:57 AM
- Ford Updates EV, Hybrid Plans, Readies Manufacturing Plants • Business Wire • 04/04/2024 12:30:00 PM
- Ford Motor Company Issues 2024 Proxy Statement, Announces May 9 as Date for Virtual Annual Meeting • Business Wire • 03/29/2024 01:05:00 PM
- GameStop Shares Tumble 20% in Pre-Market Trading Amid Revenue Decline, Direct Digital Plummets 42%, and More News • IH Market News • 03/27/2024 10:54:47 AM
- Cisco and Ford Motor Company Rollout Webex App for Productivity on the Move • PR Newswire (US) • 03/26/2024 03:00:00 PM
- Ford and Allego Partner to Electrify European Dealership Network with Ultra-Fast Charging • Business Wire • 03/26/2024 02:30:00 PM
- CFO Lawler to Affirm Full-Year 2024 Operating Guidance, Review Ford+ Growth Plan at BofA Auto Summit Today • Business Wire • 03/26/2024 11:30:00 AM
- Unilever Initiates Ice Cream Division Spin-Off and Announces Job Cuts; Berkshire Ramps Up Share Buyback Efforts, and More • IH Market News • 03/19/2024 11:33:10 AM
- Lawler to Discuss Customer-Focused Ford+ Growth Plan at Bank of America Securities Auto Summit • Business Wire • 03/12/2024 12:30:00 PM
- Oracle Soars 13% With Exceptional Growth and Boosts Nvidia Shares With Collaboration Announcement, and More • IH Market News • 03/12/2024 11:21:35 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/07/2024 09:06:40 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/06/2024 09:01:20 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 10:46:16 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 10:45:49 PM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM