Ford Launches Another Off-Road Truck, Revealing the Auto Maker's Strategy | F Message Board Posts


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Msg  2171 of 2190  at  8/1/2022 11:21:03 AM  by

jerrykrause


Ford Launches Another Off-Road Truck, Revealing the Auto Maker's Strategy

Ford Launches Another Off-Road Truck, Revealing the Auto Maker's Strategy
 

Ford Motor is launching a new version of its compact Maverick pickup truck tuned for off-roading. The launch shows how Ford is consolidating its business around key products .

Ford (ticker: F) on Monday revealed its "Tremor" off-road package for the Maverick. The Maverick is a smaller truck and the XL trim starts at about $21,000. The Maverick Tremor represents an entry-level option for buyers seeking off-roading thrills.

"Ranger, F-150 and SuperDuty customers have embraced the unique off-road capability, technology and appearance updates found across our Tremor family of trucks," said Todd Eckert, Ford truck product marketing and brand manager, in a company news release. "Maverick Tremor delivers on this same promise with new functions and features designed for off-roading — all while keeping the truck's signature size, affordability."

The package includes things such as rear differential lock, which doesn't allow both wheels to spin freely, trail control, which is like cruise control for off-roading, as well as improved shocks.

The Tremor package costs about $3,000. The Maverick Tremor will be available to order in September.

The launch illustrates how Ford plans to manage its profitable truck business, offering upgrades and different versions of key products including the F-150 series, Ranger, Bronco and Maverick.

Ford sold about 916,000 vehicles in the first half of 2022 . Trucks accounted for about 446,000 units. F-Series trucks sold about 299,000 units in the first half of the year. Ranger sold about 34,000 units and Maverick about 39,000 units. Ford also sold almost 59,000 Bronco SUVs.

Consolidating and strengthening a few key products can help any auto maker, including Ford, driving more volume through few platforms. That typically yields better profit margins which can help improve the same products in the future.

The Maverick Tremor is a conventional truck, powered by gasoline. Ford needs to make a lot of money selling trucks to help fund its transition to electric vehicles. That's the position of Ford Chief Executive Jim Farley. Down the road, Farley sees EVs making good margins too. Ford is targeting 8% to 10% margins on its EV business in the future. Ford generated 9.3% operating profit margin in the second quarter of 2022.

Coming into Monday trading. Ford stock has fallen about 29% this year, while the S&P 500 and Dow Jones Industrial Average have declined about 13% and 10%, respectively.

Higher inflation and rising interest rates have hit most auto shares. Automotive stocks in the Russell 3000 Index have dropped about 20% this year, on average.

 


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