Ford Profits Struggle Despite New Super Duty
Ford has gone to great lengths in overhauling the Kentucky Truck Plant to accommodate the all-new 2017 Ford Super Duty redesign, but it's not likely to help Ford in the latter half of 2016 when it comes to sales.
The new 2017 Super Duty is lighter by several hundred pounds, but it also benefits from stronger axles, suspension components and a host of class-exclusive technologies, and is likely to push the segment competition to new heights in response.
However, anytime you give an important vehicle a major overhaul, you'll likely have to make significant changes and upgrades to the production plant. That can be tricky when you want as little downtime for that plant as possible. By some reports, Ford invested as much as $1.3 billion in the Kentucky facility.
Ford's secret weapon thus far has been Joe Hinrichs, president of the Americas. Hinrichs has a long history of keeping production numbers up while costs stay in line when creating or modifying Ford plants worldwide. Hinrichs was in charge of the massive and important two-plant changeover when the all-new 2015 F-150 body moved from steel to aluminum. Now he's pulled off a similarly difficult achievement, overhauling the Super Duty plant outside Louisville that will produce the new and improved aluminum-bodied F-250, F-350 and F-450 pickups, and F-350, F-450 and F-550 chassis cabs.
But all of this recent success may not be enough.
According to Automotive News (subscription required), even with the efficient changeover for the highly profitable heavy-duty pickups, a slowing global economy in the third and fourth quarters is likely going to reduce the profits Ford was hoping for. With more competition and slower growth in the U.S., the Asia-Pacific region and the continued fallout from the recent Brexit vote in the United Kingdom, even a strong, new Super Duty won't be able to haul Ford out of its economic slump.
Cars.com photo by Mark Williams
Comments
I knew we were headed for another recession months ago. You can't print money forever. If you have cash, you'll be able to make smoking deals on houses and vehicles here in the next few months! I plan on taking advantage of desperate people.
The new 2017 Super Duty is lighter by several hundred pounds, but it also benefits from stronger axles, suspension components and a host of class-exclusive technologies, and is likely to push the segment competition to new heights in response.
This is Fords marketing at its finest. Ford and G.M. have been playing catch up since 1989 when Dodge released their Cummins turbo diesel. This being the first major overhaul since 1999 for the Ford. Finally getting a boxed frame. I have read the glued trucks are already rattling. Beds cant handle heavy work. How long has Cummins been building Diesel engines? How long has Ford been building them?
Ram is the King of beasts and is j2807 certified.
So...This economic slowdown won't affect the other truck makers? To my mind this actually puts Ford in a good position going forward. Yes they will have to eat the cost of the changeover however having a new truck to do battle with will help with market share. Good time to be heavy duty truck buyer.
Ford got away with a 19 year old platform with updates so they can afford to lose some profit.
More interesting is that FCA is desperate for a partner and nobody has come forward. Ram and Jeep has been through so many owners, who is next?
If Fiat-Ram is the king why are they dropping cars and lying about sales numbers?
Once Fiat drops the "Cheap Jeeps", sales #'s will decline. They will switch the Compass/Patriot plant over the end of the year, so bye bye soon to that. And all the heavy rebates on the cheapies and Ram leases sure will not help in long run. They still have to get rid of the gosh awful 5.7L.
If FCA cannot survive, break it up, sell the profitable bits (Jeep and Dodge trucks) and scrap the rest.
FCA is desperate for a partner. Really. Why did Ford and Chevy merge for a 10 speed? $$$$$$ makes cents and dollars doesn't it?
If Fiat-Ram is #1 why does it need to lie about sales?
Oops!: FCA's Industry-Leading Streak of Monthly Sales Increases Actually Ended Nearly 3 Years Ago
http://www.forbes.com/sites/dalebuss/2016/07/26/big-revision-fiat-chryslers-monthly-sales-streak-ended-nearly-3-years-ago-company-admits/#4f32c803ece2
Fiat Chrysler just let a lot of air out of its six-year success story. It announced Tuesday that it has revised the way that it reports monthly U.S. sales, revealing that its 75-month streak of month-over-month sales increases actually ended at 40 months, in September 2013.
I would think after investing 1.3 billion dollars it wil take a while to re-coop that. With a small down turn in sales right now and then if Hillary gets elected, it will take years to re-coop if Ford will recover at all, let alone the other truck companies..
FCA is debt generating machine. No one in their right mind would partner with them - that might leave a one or two Chinese companies.
And I agree, the world is in for a sizable slow down. There might be some good deals in the months to come but you better feel secure about your job. Don't get caught with the music playing and no seat to sit in.
Also, this time is might be a deflationary recession where consumers don't buy because the prices keep falling. Cash will be king.
@Ken
You were doing OK till you said Cash is King.
Elvis is King. Cash was a great country singer but it will always be Elvis.
And John Wayne.
How can an axle be class leading? I suppose the fancy set of silverware I bought was class leading as well. I know the spoon and forks will support a 50lb pumpkin. The lesser brand spoons and forks only held a 30lb pumpkin.
When I'm having Corn Flakes for breakfast I'm careful not to overload my cheap spoons.
If the axle doesn't break when using it, having more isn't class leading. How ridiculous.
I'd say the cost of developing the aluminum F Series is also a burden to Ford's profit.
Another Ford advert by PUTC.
Good one papa!
Gotta love the Ford camp. Didn't Ford testify if Chrysler went under so would they?
Pickuptrucks should be ashamed. You can order the new super duty now. Ford has only built a few for some dealers for a show piece. When new vehicles come out it takes time for the automaker to recoup the new design period. This site makes me wonder .
Sales numbers are up, in fact closest Fords been to GM sales in 80 plus years. Their try hard to beat GM in sales numbers but profits are sinking like a rock.
"Ford Motor Co. crept to within 1.3 percentage points of GM's market share through April, to 15.6 percent vs. GM's 16.9 percent. (Ford hasn't finished a year that close since 1930, the last time it topped GM, according to the Automotive News Data Center.)"
http://www.autonews.com/article/20160523/OEM02/305239974/gms-batey-puts-faith-in-numbers
Fiat bailed out twice GM once must be nice having some
one else pay your debt. FORD stands alone!!!
Sorry to break it to you dodge fans. My company has Cummins and Power strokes. You better not hook up a trailer, if you do you're are screwed. The Cummins has no balls. We haul roll off dumpsters, and the Fords can easily pull over 35,000 lbs, yes 35k and that's on a certified scale. The Ram can barely get up to 55 MPh on a flat road pulling 20,000 lbs. The problem with most Dodge fans is they have never pulled any serious weight. Yeah Cummins has been making motors for a long time, and that's the sad part. Not only can the Ford pull harder, faster and more efficiently, but it has far fewer issues. At 70,000 miles the dodge's transmission is already going out. I was actually looking forward to driving the dodge. Very disappointed in the Ram. The hype is way over blown with these trucks.
saw a 2017 super duty today. I didn't even know they had gone into production yet? Surprised the heck out of me. I guess it could have been pre-production, but that would be a strange sighting in Idaho.
Beebe, There was a test drive in Montana yesterday. These are the trucks you probably saw. Superdutydrive.com
I don't think so Chris. It was in a random place far from the dealer and far from the highway. Now that I check I found a link that says super duty production started July 11. So they are probably starting to show up at dealers now. I think it's funny that I've already seen the new super duty and still never seen the titan which has been on sale for many months now.
beebe is right. The new Super Duties are starting to show up at dealers now.
http://www.ford-trucks.com/forums/1449535-saw-my-first-2017-super-duty-at-a-vt-dealer.html
http://www.ford-trucks.com/forums/1449482-drove-a-2017-today.html
I haven't seen a Titan all year either. This was the truck that was going to take away SD sales? smh.
A guy got his truck already......
http://www.ford-trucks.com/forums/1448911-truck-delivered.html
With the 2 premiere HD trucks in the world, Ford & General Motors have no competition in the market. However, the price of an HD is thru the roof. Having the best makes them pricey but who wants to settle for the poor boys budget HD in a Dodge? Lower the price by $10k and maybe you will sell 3 times as many.
I own a 2013 F-150 and a Co. owned 2014 E350 Van.
I put 25,000 miles a year on the van
I put 5000 miles a year on the F-150
I use a full synthetic 0W20 in the F-150 and change once a year
I use a generic brand 5W30 conventional motor oil in the van and change every 5000-6000 miles.
Yesterday I had to change oil in both vehicles at the same time.
The van had 6500 miles since the last oil change and the oil came out as clean looking as changed it last.
The F-150 had 3600 miles since the last full synthetic 0W20 oil and the oil looked extremely dirty, with chunks of small stuff in the bottom of a clean drain pan.
Here is my observation and I would love to see if anybody agrees with me.
The full synthetic 0W20 oil in the F-150 is doing a better job of cleaning the internal parts of the engine is the reason why the oil looked extremely dirty, and/or the oil filter I used failed to do it's job filtering the oil with garbage on the bottom of the clean drain pan.
The no brand generic 5W30 conventional oil used in the van with twice the mileage came out looking clean means the oil failed to do it's job cleaning the internal parts of the engine, and/or I used a different and better brand of oil filter on the van that did a better job filtering the oil making it look clean ?
The no brand generic 5W30 conventional oil used in the van with twice the mileage came out looking clean means the oil failed to do it's job cleaning the internal parts of the engine, and/or I used a different and better brand of oil filter on the van that did a better job filtering the oil making it look clean?
@Bankrupt in PA
your company-owned truck is getting an oil change approximately every 90 days if your math is correct. The annual oil change interval in the F150 is a possible culprit but the best test of your theory about detergents in the oil would be to run the synthetic in the van for one maintenance cycle.
Some engines have more blow-by which will introduce soot from the combustion process into the crankcase. For this reason your present comparison is a bit of an apples/oranges issue.
Try the premium grade oil in your van, then you'll know.
$ 69,545.00 MSRP, And you don't even get a jack??????????????? WTF!?
http://i234.photobucket.com/albums/ee69/jeepboyny2/D8C9BDCC-B5BE-42E0-BABF-CA847266FF8B_zpssszb17py.jpg
Rape the customer, laugh all the way to the bank, then cry to the taxpayer about how tough the auto business is. Bullsh*t. Whining about how bad it is while raking in 13 grand per 150, cheap, lying bastards. I'm not sure who is worse, the auto manufacturers, the lying, theiving auto dealers, or the vicious attack dogs called lawyers defending their bad decisions. Makes me want to slap a $10,000 tariff on imported vehicles from Mexico, just to punish them for bad behavior. The hubris of auto manufactures knows no boundaries, it's not just Ford.
Ummm, no. $0 means the jack is included. A 4 Ton Jack is standard quipment on an xl F-350. This is a Lariat Ultimate Package. If there was no jack it would have said jack delete or something like that.
The only way there would be no jack is if you do a pickup box delete and that's not what is going on here. $0 means standard equipment. You get a jack with the standard XL and a 4 Ton Jack with DRW. Educate yourself.
My excitement is with the 2017 Nissan Titan XD gas engine.
It has a 2500 lb payload with the same size of a 1/2 ton truck.
Towing is not needed for me, I want payload!
How does anybody know that Ford profits will be down despite the new truck..hell it just came out and is getting to dealers now..dumb
Oil Filters: Regardless of the oil you use,buy the best filter for said vehicles.I run Royal Purple oil,and their microfiber filter.That will catch a lot more crud than any paper filter. I got mine at walmart,for twenty bux,the oil was 8.72 per quart.
Other than Big Al being right about the aluminum costing more to manufacture (which I am sure is not your point) what is the main point about this article? PUTC is a fan boy/PR web site that fan boys care only about sales numbers and being no. 1, they could care less about profits.
Your comments make me wonder how bad things already are at Ford? (Past success may not be enough/The new super duty want be able to haul Ford out of its economic slump) Has the new supper duty already been forecasted not to sell well? Is Ford already in financial trouble?
Where did everybody go?
The full synthetic 0W20 oil in the F-150 is doing a better job of cleaning the internal parts of the engine is the reason why the oil looked extremely dirty,.......... The no brand generic 5W30 conventional oil used in the van with twice the mileage came out looking clean means the oil failed to do it's job cleaning the internal parts of the engine
Posted by: BankruptinPA | Aug 21, 2016 6:29:21 AM
You would be correct on both of your theories. A high quality motor oil will indeed start darkening shortly after it is installed in your engine due to its high detergent content. The oil filter will have no effect on the oil color. The filter media is designed to collect pieces of dirt and metal. The finer the filter media, the smaller the pieces of debris it will be able to collect. Be sure to follow the manufactures recommended maintenance intervals and always use fully Synthetic motor oils.
Dealers are overstocked with late model used trucks with low mileage that are a much better value than new.
It's a waste to own a super duty if you don't use it as a working truck for heavy hauling or towing so who cares what it looks like if it's banged up like a used truck?
I don't see much improvement over the new 2017 Super Duty compared to the older model, it hauls and tows the same.
If I needed a super duty I wouldn't have a problem buying a used one and save $10 to $25K.
I know a man in the construction and snow plowing business and he buys the cheapest and junkiest used super duty's he could find cause his workers beat and abuse them and when those trucks get bad enough he simply junks them and buys another used one. He would never trust his employees with a brand new truck cause they would destroy it.
Switching to aluminum takes a short term bite but Ford already showed it can weather it with the F150.
Slowing/Cooling global economy will hit all of the big 3 minus 1 like it always does. The question is will there be fresh and free federal bail outs for 2 of them again and for the first time Ford? Since all 3 refuse to continually invest in world class small and midsized cars which do sell when times are good or bad.
The problem may well be that Ford has brought in the wrong vehicle at the wrong time. I would suggest that they've gone too far too quickly and as a result their costs have skyrocketed while their sales have gone down.
"Slowing/Cooling global economy will hit all of the big 3 minus 1 like it always does. The question is will there be fresh and free federal bail outs for 2 of them again and for the first time Ford? Since all 3 refuse to continually invest in world class small and midsized cars which do sell when times are good or bad."
The question is not "small and midsized cars", Clint; the market has made it quite clear there is huge demand for trucks. However, the area they are refusing to acknowledge is in the small to midsized trucks; I'm talking trucks even smaller than the current round of so-called 'mid-sized' and more along the lines of the S-10 and earlier Ranger with modern power and improved aerodynamics. For most trucks of that size, it should be relatively easy to exceed 35 highway mpg using the more rounded nose caps and proper air dams. making those air dams either retractible or spring-loaded would make them still usable under most open-field or logging-trail types of off-roading, even if it wouldn't work under hard-core rock crawling.
"FCA is debt generating machine. No one in their right mind would partner with them - that might leave a one or two Chinese companies." -- Posted by: Ken | Aug 20, 2016 2:25:59 PM
Somebody already has, though it's not a car company per se.
"Sorry to break it to you dodge fans. My company has Cummins and Power strokes. You better not hook up a trailer, if you do you're are screwed. The Cummins has no balls. We haul roll off dumpsters, and the Fords can easily pull over 35,000 lbs, yes 35k and that's on a certified scale. The Ram can barely get up to 55 MPh on a flat road pulling 20,000 lbs. The problem with most Dodge fans is they have never pulled any serious weight. Yeah Cummins has been making motors for a long time, and that's the sad part. Not only can the Ford pull harder, faster and more efficiently, but it has far fewer issues. At 70,000 miles the dodge's transmission is already going out. I was actually looking forward to driving the dodge. Very disappointed in the Ram. The hype is way over blown with these trucks." -- Posted by: Boco | Aug 20, 2016 8:39:47 PM
Sorry to see you feel that way, Boco.
By the way, why is it that when I see auto trailers carrying four, five, sometimes even six cars and pickup trucks being pulled by a pickup truck (a fairly common occurrence around where I live) they're all being pulled by a RAM 3500? Why not a Ford? Why not a Chevy or GMC? Every one I've seen has been a Ram pulling it.
@BRiPA: "Here is my observation and I would love to see if anybody agrees with me.
The full synthetic 0W20 oil in the F-150 is doing a better job of cleaning the internal parts of the engine is the reason why the oil looked extremely dirty, and/or the oil filter I used failed to do it's job filtering the oil with garbage on the bottom of the clean drain pan.
The no brand generic 5W30 conventional oil used in the van with twice the mileage came out looking clean means the oil failed to do it's job cleaning the internal parts of the engine, and/or I used a different and better brand of oil filter on the van that did a better job filtering the oil making it look clean ?"
I would somewhat question your analysis. If the two engines are approximately equivalent, why is the 0w30 showing pieces in the pan while the 5w30 is not? You call it cleaning, but I question whether the 0w30 is protecting. You should never see pieces in the oil pan because that means pieces are coming out of the engine. The black coloring could easily be coming from the aluminum block itself (assuming such for the moment) or from the aluminum head (almost certain). I'll note you don't mention what engine is in either vehicle.
If I were you, I'd worry about those pieces. If they're chunks as you describe, are your cylinder walls coming apart? Is something in the bottom end of the block about to let go? I strongly suggest you get those chunks analyzed to get some handle on where they might have originated in that engine. That's not cleaning, that's obvious wear!
@Really
AIFP which Ford did not participate and is considered the "bailout":
When it was all said and done, GM stuck the American taxpayer with a 11.3 billon dollar loss.
Page 20 GAO-15-197 Report to Congress on the TARP program.
BTW - Fiat/Chrysler paid 100% back under AIFP. Be a bitter pill if an Italian owned company shorted the US taxpayer so good on Sergio.
Someone check my math on this.... GM owes every American $37.66.
@ Nissanrgreat I love ford too. what are you driving? Because I'm driving a ford Escort best car ever.
hopefully we can meet some day to compare cars and go Cruising down the streets and go out there racing .
@ really? Well I used to drive a Nissan but I think I'm gonna Trade in my old Nissan Titan for a bran new FIRS F150 I LOVE THOSE TRUCKS Specially That they are made of aluminum and steel.
Maybe some day Really? Maybe some day.
In an economy like this with only the top 10-15% doing well and the rest are struggling, you can only sell so my $50,000-$75,000 trucks before supply exceeds demand.
The comments to this entry are closed.