Ford Fires Shot At GM's New Pickups: Cuts F-150 Pricing

[Perian]

Link: http://www.marketwatch.com/News/Stor...oo&siteid=yhoo


By Shawn Langlois, MarketWatch
Last Update: 1:51 PM ET Aug 2, 2006

SAN FRANCISCO (MarketWatch) -- Ford Motor Co. announced Wednesday that it's cutting prices on its best-selling F-150 pickup a day after reporting that sales of the flagship truck lineup plunged 46% from a year ago without the help of employee-pricing deals.

The Dearborn, Mich.-based automaker lowered the sticker price for its F-150 line by as much as $1,400. The average price reductions, by cab style, are $720 for its Regular Cab models, $830 for its SuperCabs and $949 for its SuperCrews.

Including destination charges, Ford said that pricing for its F-150 XL Regular Cab 4X2 will begin at $19,120, and that the product line's pricing will range up to $39,565 for the F-150 Lariat King Ranch SuperCrew 4X4.

"This is the most competitive segment right now, and it's also one of the weakest, behind large SUVs," said Edmunds.com analyst Jesse Toprak. "With GM's new 2007 line coming out, price points and incentives are key for Ford in clearing out its inventory."

[igor]

Media.Ford.com Release: LINK

the F150 is matched to the GMT900's in Towing (10,500lbs), has higher maximum payload(3 ,050lbs)and longer warranty(5y 60k miles powertrain) ..

Ford is not going the GM have any sales easily - they will fight back ...

I Think this will be interesting.

Igor

[SUPERBADD75]

fell 46%? wow, what have GM trucks done in the same time period? that's amazing, and it really sucks for Ford considering that the F-Series trucks are what keeps them going.

[kenman923]

It shows that Ford is worried after the intro of GM's new pickups.

[ARTSBEST]

Ford is worried about the ENTIRE truck world NOT just GM. As well they should. Ditto with GM, Nissan, Chrysler, etc., etc.. Competition today is NO longer confined to just GM and Ford. Oil today? $77 per barrel. GOOD LUCK truck makers.

[megeebee]

It's war. The last bastion of supremacy for the domestic companies is trucks. All 3 ( or 2 1/2) are going to go to any length they can to defend their turf. I wouldn't be suprised if GM and DCX do the same.

[cincygoblue]

While I think that Ford's moves here will help staunch some potential lost customers, upping your towing capacity to on-par with a brand new truck will not prevent you from losing sales. Towing capacity is only 1 feature of a truck, and this is not the F250 or F350 we're talking about here. Lowering the price will help, but for a person that's committed to neither Ford nor GM, I think Ford will need to go further on the pricing give-backs. Their trucks are already 2 years old. Of course a lot depends on personal tastes and belief in the brand's reputation, but if F150 sales were down 46% YOY (taking into account Employee Pricing) for July and before the Employee Pricing thing looking at Jan-Jun 2006 vs 2005 (down 8400 units) with no change in the competitors' trucks, then nothing says to me that this will help them fall any more slowly once GM and Toyota both bring out new entries.

[logansowner]

They aren't countering the 900's they are fighting oil. When the new F-150 came out in 04, GM didn't give up very many Silverado sales, and now Ford wont lose many to Chevy. Truck buyers are a loyal bunch, they'll take an inferior product just because of the name. Oil is the enemy, not each other.

[JVal14]

Originally Posted by SUPERBADD75

fell 46%? wow, what have GM trucks done in the same time period? that's amazing, and it really sucks for Ford considering that the F-Series trucks are what keeps them going.

It seems to me that Ford should be able to recover some of those sales with a competent mid-sized truck. Unfortunately the Ranger is obsolete by most measures. They should be working on a dramatic overhaul, like, yesterday.

[Duramaxman1986]

I really don't thank it is the oil as much as some of you think. Remember how many sales go to people that use trucks every day and rely on them. The sales are dropping so much because the there have not been any new trucks in the market (Real Trucks) in two years. Why buy a new truck when it is almost the same as the one you are already driving?

The new GMT900S are going to sell great!!

[igor]

I am really surprised how negative and dismissive GMI is of this.

Had Ford been introducing an all new F150, and GM made sure to match or surpass its main stats, GMI would be cheering about a genious move.

The truth is, Ford made a great move, and while the F150 is 2 years old, it is more capable than the new GM trucks and probably more than the upcoming Tundra.

The truck market is abut to lose 15-25% of sales and given the huge profits, Ford, GM and everyone else is scared - it is up to each manufacturer to defend their product and try to maintain or grow their market share in the shrinking segment.

Igor

[GMFreak8]

Originally Posted by igor

the F150 is matched to the GMT900's in Towing (10,500lbs)

but, but, but, I thought GM said the GMT900s had class leading towing capabilities. *gasp*

[igor]

Originally Posted by SUPERBADD75

fell 46%? wow, what have GM trucks done in the same time period? that's amazing, and it really sucks for Ford considering that the F-Series trucks are what keeps them going.

Silverado fell some 26% ....
overall Gmt800's were still about 100k units behind the F-series YTD..

I agree with others that plenty people will buy the GMT900's for being the new kid on the blok.. but sume will stay away from it because it has the "first model year" stigma..

F150 is a perfectly capable competitor to the GMT900 trucks ...

GMFreak8
They are class-leading together

Igor

[VetteZ06]

Originally Posted by igor

. . . it is more capable than the new GM trucks . . .

Wow, you've already driven them extensively and put them through instrumented testing to prove this? Impressive!



Whatever helps you sleep at night, my friend.

[igor]

^^^ OK More capable on paper - does that work better?

Igor