Will a “go big or go home” strategy work with Ford trucks and SUVs?
With the constant slippage in the new vehicle sales sector, Ford is trying to take advantage of the one silver lining: big honkin’ trucks.
Truck and SUV sales have been the only bright spot for the auto industry in recent years, and Ford is going full throttle in its strategy to give the people what they seemingly want.
Picking Up the Slack
As featured in USA Today, Ford is going all-in on this plan by announcing that 86% of its North American production will be trucks and SUVs by 2020, up from 70%. So, in a couple years, you’ll see less Ford Fusions on the road.
Will anyone notice that little tidbit? Maybe. But what will be more easily noticed is the fact that there might be a return to early 2000s glory of the gas guzzler.
Facebook: Ford Motor Company
The thing is, the guzzling has slowed to a sip compared to what it once was, with hi-tech engine capabilities that are giving more MPGs without sacrificing the power. In fact, technology in all aspects has helped bring trucks into the new generation, but it hasn’t all been sunshine and rainbows.
Ford is still reeling from some technical miscues and slow production of its autonomous driving tech. The hope is that it can make up where some of that money was lost with new F-Series options and redesigned SUVs like the Expedition. We’ve all seen that beautiful commercial featuring families and the great American landscape.
One part of this strategy is actually already holding up, as the Ford trucks franchise is more profitable than the company as a whole. If Ford trucks broke off to their own company, kind of like how Ram is its own thing, it would boost consumer confidence as well as stock prices. The F-Series would hit at $16 a share, compared to $12 a share for the company as a whole, according to the USA Today report.
Ford’s recent 1.4 million-unit recall of the aforementioned Fusion and the Lincoln MKZ sedan has only backtracked its profit efforts. With the move to go mostly big, Ford trucks and SUVs may be the only play the company has to accomplish sales goals and bring a fresh batch of drivers along with it.