I have seen this over the years, time and time again with businesses. Remember Curtis Mathis? When the world of TVs were getting cheaper, theirs was more expensive. AMC. They had cars that were as expensive as a Mercury, yet should have been far cheaper. Back then people blamed the unions for the higher prices, today people blame the resources, in the end the companies went under. If the mean national income is $54000, then a company needs to set prices at a level people can afford to buy and replace. You can only dream so long about buying before you turn to another and buy theirs.

 

The company needs to set prices that they can be profitable at, period. As far as the TV comparison, you are correct. But how long would the Curtis Mathis last? How long do the cheap disposable TV's last? So yes, Ford could build a cheaper truck, although disposable in 5 years buy another one so which is really cheaper? The fact remains, everything is higher over this sh&tshow of the last 2 years, and I don't look for prices to come down.

 

50% profit? In 1994 I went to buy an f150. A friend at Ford's sent me the order information so I could custom order. She also told me what Ford's profit margin was on each truck. So I went to order my truck, $16,000....Ford's profit margin in 1994 was $11,000. So how much is enough? GE profit is around 5%, Raytheon around 6%, Booz Allen 5%....

 

If you thinks that Ford is making 50% profit on vehicles, I want some of what you are smoking.......

 

So some he said, she said information from 28 years ago is what you base your current perspective on? Lol

im not sure how accurate Wikipedia is for this type of info but just taking a glance each one of GE, Raytheon and Booz Allen all have higher margins than Ford.

So aside from you being wrong I’m also wondering how they even relate to an auto manufacturer to begin with.

from what I’m seeing Ford is closer to 3% (and you numbers for your odd examples are low, they’re potentially a hair higher)?

I think one of the biggest problems today is people take false information and just run wild with it as long as it feels good and fits their narrative…..

 

Profit margins on pick-ups, full size SUV’s and luxury vehicles is higher. Smaller cars barely turn a profit if any. So yes the profit margin on a super duty is higher than a Kia Rio for example. On the other hand go price the competition apples to apples: an F150 vs Ram 1500 vs GM 1500 vs Tundra vs Titan and you’ll see the pricing is close. I used 1/2 tons as an example because Toyota and Nissan don’t make a 3/4 ton plus truck. Been looking for a new Highlander for the wife lately and it’s the same thing with Toyota as it is with Ford and every other car manufacturer right now. The comparison to Curtis Mathis is not relevant in this situation…

 

$10000 today
https://www.foxbusiness.com/markets/...profit-machine

 

I don't think $53K is expensive in todays world. I see late model used trucks selling at over $100K and really nobody is baulking at it since there is nothing else available. Out here in the PNW we are still paying $5/gas $6/Diesel. $500K gets you 5500 sf lot and 1500sf house. Ain't nothing cheap and while I think there will be a slowdown, ain't nothing slowing here yet.

 

https://www.foxbusiness.com/markets/...profit-machine

 

A report from 4 years ago is relevant how?

 

https://www.core77.com/posts/82125/W...le-Sedans-Die#

The more time on the net, the more you dig up and it all spells the same thing. Large profit margins

 

I ordered my F350 SCLB 13Jan22, MSRP = 52060
Took delivery 08Jul22, MSRP = 54,520, that is a 2460 increase in less than 6 months.

I broke the difference down line by line
+ $100 Destination and delivery
+ $1950 Base Model
+ $40 4.3 electric locking axle
+ $185 power equipment group
+ $185 STX Appearence group
= $2460

I went somewhat light on the electrical options for I plan on keeping my truck for a long long time and the price will steadily climb. Looking back, I A-Planned my 89 5.0L mustang for 11,550, A-planned my 93 XL F250 standard Cab Long Bed for 16,800, A-planned my 96 F150 XLT for just a bit more than the 93. Have not bought a new vehicle up until now since.
I purchased my 99 Lightning about 10 years ago for 19K with 12k on odometer. She has been an awesome truck for what I use it for. That is cruising weekends with the wife and several trips north chasing steelhead. It is a great truck until road gets wet, worse in snow and damn near impossible on ice, 131 does have a certain pucker factor to it. She just broke 32k on odo.
I seen writing on wall especially with current admin is heading. I got it in my head now is the time to buy due to my position in life... I was seriously considering ordering a F150 which would fit the bill fine for me at this time. Looking forward though I may need more hauling capability and I am not seeing where the opportunity will arise again for I refuse to finance a frigghin thing.
What sealed the deal for me was an experience I had at work one day. I was looking into an issue Sharronville was experiencing on the 10R140. A lot of times my investigations are done using NX 3D models. I also happened to have the 10R80 Transmission rear rough boring tool model open. I dropped the 10R80 tool into the 10R140 hole, the difference in size was stunning. In my opinion while the Super Duty is not cheap by any means, you get a whole lot more truck for the money over the F150 especially considering the massiveness of frame, motor, trans, axles, etc etc etc

BTW, G L Ron, if that is your location in Mi. The wife and I drive through your area mostly on Saturdays looking to get out of the city. We particularity love the Hillsdale / Jonesville / Litchfield areas but Waterloo is pretty awesome as well

 

There is supply side issues and interest rates aren’t high enough to keep up with inflation. You have a little civil war going on and lots of foreign influence in things right now.

I bought a piece of equipment yesterday at msrp from what I ordered it 6 months ago.

They have gone up 12% since then and removing options. They deleted my backup camera as well, take it or leave it.

I really don’t need it but can make money with it. Figured go for it. Still relatively low interest rate and long term financing.

 

I do live in grass lake. I love the Irish hills and Waterloo area. It reminds me of being upnorth.