2004 F-150 Price Increase Won't Cover Costs for Ford.

Discussion in 'OT Driven' started by TriShield, Jul 14, 2003.

  1. TriShield

    TriShield Super Moderator® Super Moderator

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    But Ford says mix, limited incentives will boost profits.

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    By Amy Wilson
    Automotive News / July 14, 2003

    DETROIT -- The price increase for the 2004 F-150 won't cover the extra money Ford Motor Co. is spending to produce each truck. But Ford says it will make more money on the redesigned truck by limiting incentives and selling a higher proportion of higher-priced models.

    Ford said on Thursday, July 10, that it would raise prices on 2004 models by $245 to $635 over 2003 models with comparable powertrains.
    The trucks will start arriving at dealerships late this month and go on sale in August.

    The redesigned base F-150 will start at $22,010, including freight, for an XL regular cab with two-wheel drive. The top-of-the-line Lariat SuperCrew will start at $36,365, including freight. With optional equipment, prices could exceed $40,000.

    Ford also will sell its current truck, now dubbed the F-150 Heritage, for 2004. It will start at $19,920, including freight, for an XL regular cab with two-wheel drive, a V-6 engine and a manual transmission. Ford did not raise the price of the F-150 Heritage for 2004, and the company will steer large incentives to the model.

    YEAR-OVER-YEAR PRICE COMPARISON
    Model 2003 MY Pricing* Difference 2004 MY Pricing*
    HERITAGE
    XL Regular Cab 4x4 4.2-liter V-6 Manual $19,125 $0 $19,125
    XLT SuperCab 4x4 4.6-liter V-8 Manual $28,455 $0 $28,455
    2004 F-150
    XL Regular Cab 4x2 4.6-liter V-8 Automatic $20,970 $245 $21,215
    STX Regular Cab 4x2 4.6-liter V-8 Automatic $21,965 $250 $22,215*
    XLT SuperCab 4x4 4.6-liter V-8 Automatic $29,550 $535 $30,085
    FX4 SuperCab 4x4 5.4-liter V-8 Automatic $31,755 $430 $32,185
    Lariat SuperCrew 4x4 5.4-liter V-8 Automatic $34,935 $635 $35,570
    *Prices exclude $795 destination and delivery. 2004MY STX price includes optional Bright Tubular Running Boards at $350 MSRP.

    Ford plans to produce the Heritage model until mid-2004 at its Oakville, Ontario, plant. It won't disclose expected Heritage volume, but the one-shift Ontario plant produced about 107,000 vehicles during the 2003 model year, according to the Automotive News Data Center.

    Ford will limit discounts on the redesigned models but will share plans for some initial incentives with dealers by the end of July. Ford says the pricing plan for the new model should produce higher profits from F-150 sales, despite higher costs of $1,000 to $2,000 per truck.

    "The price rise will not likely cover the cost in and of itself, but we do anticipate that the incentive spending will be substantially lower and we do anticipate a mix improvement," Ford Division President Steve Lyons said. "So the combination of those two improves the contribution margin."

    Some industry analysts doubt that Ford can sustain a higher margin for long. Given the heavy discounts on the 2003 model, the buyer of an average redesigned F-150 would have to pay $1,800 more per vehicle, "a tall order off an average transaction price of $28,700," Goldman Sachs analyst Gary Lapidus wrote in a report.

    Dealer Jerry Reynolds of Prestige Ford in Garland, Texas, said he was pleasantly surprised by lower than expected prices.

    "The message I got out of it was they are really looking at this thing for volume," he said. "It would have been easier to sell less trucks and make more money on (each) truck, but that's something, as a dealer, we'd hate to see."

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  2. Dr. Woo

    Dr. Woo Guns don't kill people

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    Fully loaded Ford truck or Audi S4? Hmm...
     
  3. Sonic

    Sonic Live every day to the fullest, for yesterday is go

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    :yum: truck.
     
  4. BLoG

    BLoG Scented Meat

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    :wiggle:

    It's gonna be a tough wait for the new lightning
     
  5. Dr. Woo

    Dr. Woo Guns don't kill people

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    Not like it's gonna matter. Ford's customer base for the F-series trucks are so loyal that Ford could charge 30k for the base model and it'll still sell like crazy.
     
  6. Its not like you can afford it anyways :fawk:
     
  7. Urinal Mint

    Urinal Mint bourbon afficionado

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    With X-Plan, one of these loaded w/ leather should run about $31k :bigok:

    FX4 SuperCab 4x4 5.4-liter V-8 Automatic $31,755 $430 $32,185
     
  8. Well, if your plan for your vehicle includes towing anything or going at all off road, you'd probably go with the F-150.

    Different vevicles for different applications.
     
  9. BLoG

    BLoG Scented Meat

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    I'll be sure to wave at you as i pass your lancer :ugh2:
     
  10. 330R

    330R New Member

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    it's just wild how expensive trucks and SUVs have become.

    but this next F150 is supposed to be the best truck evar
     
  11. Seifer

    Seifer Abort your Babies!

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    wow, ford cant even make a profit on trucks?

    chevy makes like 7k on each truck they sell.
     
  12. I have a focus, I wish I had a lancer.
     
  13. Oh, ford lost an average of 194 on each car sold.
     
  14. Seifer

    Seifer Abort your Babies!

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    i hope ford goes bankrupt.
     
  15. mucky

    mucky .

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    Where the fuck does it say Ford isn't making a profit on their full-size pickups? :slap:
     
  16. BLoG

    BLoG Scented Meat

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    Change your name to Lancer > Focus
     
  17. Sonic

    Sonic Live every day to the fullest, for yesterday is go

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    You missed the point.
     
  18. Seifer

    Seifer Abort your Babies!

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    i must have missed the point, it seems to me like the entire article was abotu how ford is raising prices, but it still wont pull their dumb fucking asses out of the red.
     
  19. mucky

    mucky .

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    GM would be on the same boat if it wasn't for GMAC.
     
  20. 330R

    330R New Member

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    GM deserves it more. i shouldn't say that, though. i just want the dumbasses responsible for decision making over there to be euthanized.
     
  21. poonmonster

    poonmonster OT Supporter

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    god willing
     
  22. Seifer

    Seifer Abort your Babies!

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    well.. maybe ford should make something like GMAC then if they dont have it..

    and no i really dont think they would be.
     
  23. Seifer

    Seifer Abort your Babies!

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    i just cant believe that ford cant make a profit on a pickup truck that costs 35 thousand dollars.. while GM is bringing in cash hand over fist ont heir line of trucks and fullsized SUV's..
     
  24. mucky

    mucky .

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  25. Seifer

    Seifer Abort your Babies!

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    mucky, Ford said on Thursday, July 10, that it would raise prices on 2004 models by $245 to $635 over 2003 models with comparable powertrains. The price increase for the 2004 F-150 won't cover the extra money Ford Motor Co. is spending to produce each truck.
     

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