REPORT Aluminum Won’t Affect Dealer Profitability
The amount of aluminum used on the 2015 Ford F-150 is extensive. It’s the largest application of aluminum undertaken by the automotive company, and is industry leading.
To convert over to aluminum manufacturing, Ford had to re-tool their Dearborn assembly plant (and soon, their Kansas City plant) to accommodate the new material.
They had to secure a reliable source of aluminum and buy enough of it to produce a new truck every 60 seconds in Dearborn. They had to test the aluminum and insure its safety and durability. Sounds expensive, doesn’t it?
Yes, Ford’s profit margins might suffer a bit with the new truck, but a report from The Detroit News suggests that the dealerships themselves will continue their trend of record profitability.
With 24 new vehicle launches last year, including 16 in the United States, dealerships have a lot of options to choose from to pick the right vehicle for a consumer.
In truck land, Ford currently has an inventory of approximately 11,000 units. The average time a truck sits on the lot before being sold is a whopping five days. The extremely popular Raptor was turning over every 14 days during its heyday.
Demand is extremely high for the new truck. What is more impressive is that Ford won’t reach full production levels until mid-2015.
Also, helping dealers out is higher-than-ever transactions, making the F-150 one of the top luxury vehicles in the country. It looks like it’s going to continue to be a good time for Ford.
Join the Ford fans in the forum.>>