Show Me the Money: Ford’s Killing of the Cars Explains Everything
Cars aren’t where Ford makes its money. It’s the big trucks we all crave.
Ford just announced that it’s killing off most of its cars, except for the Mustang and the Focus Active, in an effort to cut costs. People want crossovers, SUVs, and trucks, so it makes sense.
It also shows us where the money is. In 2017, Ford reportedly sold nearly 900,000 F-Series vehicles. That’s just the F-150 and Super Duty. It was the best-selling vehicle in the country last year. It was the best-selling by a lot.
It’s also where Ford makes its money. The F-150 isn’t going anywhere anytime soon. Super Duty isn’t going anywhere either. The new Ranger is coming. Heck, it looks like there’ll even be a bed delete option for the Ranger, reports The Truth About Cars, which is something we didn’t expect.
Ford is making every effort to accommodate the truck buyers, who are the ones who keep the lights on in Dearborn.
What’s truly impressive is how profitable trucks must be, even when dealerships often discount them several grand or more to move the metal. Really, though, they’re just giving customers what they want.
The F-150 diesel is a response to consumer demand and market trends. Depending on how you do the math, the Power Stroke diesel engine is $4,000 more than the 3.3L base engine.
Ford offers F-150s in all cab configurations and various bed lengths. The rear end ratio can often be specified. Heck, the company still lets you go into a dealership and place a factory order so you can get the exact truck you want (within the parameters Ford sets).
Customers demand more from their trucks, too. Loan terms are ballooning because people want more expensive trucks in their lives. We haven’t reached a price ceiling on what someone will pay for a pickup truck, and as long as people keep buying the loaded-up models, Ford will keep offering more and more features.
There’s no need to have a fancy Fusion in the driveway when the F-150 has more features, more rear seat space, and can still do the heavy work when needed.
The cars, in a way, have become redundant. There’s no need to have a fancy Fusion in the driveway when the F-150 has more features, more rear seat space, and can still do the heavy work when needed. It’s hard to sell cars when you sell a truck that is legitimately two vehicles in one.
Crossovers and SUVs are pushing this trend more than trucks. People want to sit higher up, they want more storage capacity, and they want to feel like they’re safer on the road. Now, most SUVs get fuel economy similar to that of their car counterpart. It’s no wonder they’re popular.
When fuel prices rise again, people aren’t necessarily going to flock back to small cars. The F-150 diesel carries a highway EPA rating of 30 mpg. Why give that up for a Fiesta?
We’re sad to lose the Focus ST and RS models, which unless we hear otherwise are dead. But we’re optimistic for the overall health of the company, which means we’ll all have more trucks to enjoy long into the future.