2004 f-series on sale in august!!
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From: prov ri
2004 f-series on sale in august!!
http://www.usatoday.com/money/autos/...rdtrucks_x.htm
Posted 6/11/2003 1:31 PM Updated 6/11/2003 1:31 PM
The new Ford F-150.
Ford banks on all-new F-Series
By David Kiley, USA TODAY
NORFOLK, Va. — Ford Motor Tuesday began building its most important vehicle — the all-new 2004 F-Series pickup. Designed to offer customers as much interior comfort and style as a European sedan, the only thing the pickup may lack is enough profit.
The first of Ford's all-new 2004 F-150 trucks waits to roll off the assembly line in Norfolk, Va.
By Gary Knapp, AP
Ford sold 814,000 F-Series — the best-selling vehicle in the USA — last year. Wall Street estimates they accounted for about half of Ford's automotive profit.
But a repeat in 2004 isn't likely. It's costing at least $1,200 a vehicle more to build the new truck vs. its predecessor, and few think Ford will be able to sell it for that much more. Ford also will start selling the F-Series in August in the middle of the most cutthroat truck price war in the industry's history.
"There is no question we have to cut cost on the truck. But it's more important that we get this launch right," said Ford CEO Bill Ford. "... This is the most important model to our turnaround."
He ruled out cost cutting before the launch because late engineering changes led to 12 recalls of Ford Focus. That hurt Ford's quality scores and cost hundreds of millions in warranty payouts.
The added costs for the F-150 are in five different plush interior designs, a new 5.4-liter V-8 engine and about 500 additional pounds of weight for safety and performance features and space.
After the launch, Ford will try to beat down suppliers on costs, move some parts production abroad, re-engineer some components and take out content it hopes customers won't miss. "But we have to be careful not to hurt quality or disappoint our customers," says Ford manufacturing chief Roman Krieger.
Adding to the price pressure is discounting by other automakers. General Motors is discounting its trucks by 20.3%. Dodge is selling the Ram pickup 17% below sticker price. Even Toyota is discounting its Tundra by 16%.
GM is using its success in lowering manufacturing costs to inflict as much pain as possible on Ford and Chrysler Group with its incentives.
"When you are the low-cost manufacturer, you can call the tune to which your competition dances," says David Cole, director of the Center for Automotive Research in Ann Arbor, Mich.
Given the pricing pressure from GM, some analysts worry about Ford's ability to make back its investment on F-Series in a reasonable time frame, about two years.
"Negative pricing pressure on Ford is only getting worse as it launches the new truck, not better," says Goldman Sachs' Gary Lapidus.
Ted Lois, 48, of Norfolk, home to one of three F-Series plants, has been tracking the progress of the new truck on a Web site and says he is poised to buy one. "But there is no way I'd pay sticker or close to it for a U.S. vehicle. Why should I? I'll wait until early 2004 for the $3,000 rebate."
Posted 6/11/2003 1:31 PM Updated 6/11/2003 1:31 PM
The new Ford F-150.
Ford banks on all-new F-Series
By David Kiley, USA TODAY
NORFOLK, Va. — Ford Motor Tuesday began building its most important vehicle — the all-new 2004 F-Series pickup. Designed to offer customers as much interior comfort and style as a European sedan, the only thing the pickup may lack is enough profit.
The first of Ford's all-new 2004 F-150 trucks waits to roll off the assembly line in Norfolk, Va.
By Gary Knapp, AP
Ford sold 814,000 F-Series — the best-selling vehicle in the USA — last year. Wall Street estimates they accounted for about half of Ford's automotive profit.
But a repeat in 2004 isn't likely. It's costing at least $1,200 a vehicle more to build the new truck vs. its predecessor, and few think Ford will be able to sell it for that much more. Ford also will start selling the F-Series in August in the middle of the most cutthroat truck price war in the industry's history.
"There is no question we have to cut cost on the truck. But it's more important that we get this launch right," said Ford CEO Bill Ford. "... This is the most important model to our turnaround."
He ruled out cost cutting before the launch because late engineering changes led to 12 recalls of Ford Focus. That hurt Ford's quality scores and cost hundreds of millions in warranty payouts.
The added costs for the F-150 are in five different plush interior designs, a new 5.4-liter V-8 engine and about 500 additional pounds of weight for safety and performance features and space.
After the launch, Ford will try to beat down suppliers on costs, move some parts production abroad, re-engineer some components and take out content it hopes customers won't miss. "But we have to be careful not to hurt quality or disappoint our customers," says Ford manufacturing chief Roman Krieger.
Adding to the price pressure is discounting by other automakers. General Motors is discounting its trucks by 20.3%. Dodge is selling the Ram pickup 17% below sticker price. Even Toyota is discounting its Tundra by 16%.
GM is using its success in lowering manufacturing costs to inflict as much pain as possible on Ford and Chrysler Group with its incentives.
"When you are the low-cost manufacturer, you can call the tune to which your competition dances," says David Cole, director of the Center for Automotive Research in Ann Arbor, Mich.
Given the pricing pressure from GM, some analysts worry about Ford's ability to make back its investment on F-Series in a reasonable time frame, about two years.
"Negative pricing pressure on Ford is only getting worse as it launches the new truck, not better," says Goldman Sachs' Gary Lapidus.
Ted Lois, 48, of Norfolk, home to one of three F-Series plants, has been tracking the progress of the new truck on a Web site and says he is poised to buy one. "But there is no way I'd pay sticker or close to it for a U.S. vehicle. Why should I? I'll wait until early 2004 for the $3,000 rebate."
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"After the launch, Ford will try to beat down suppliers on costs, move some parts production abroad, re-engineer some components and take out content it hopes customers won't miss. "But we have to be careful not to hurt quality or disappoint our customers," says Ford manufacturing chief Roman Krieger. "
Take out content it hopes customers won't miss??!!?
That sounds rather strange. If anything, I would expect Ford to offer more options, not fewer. Anybody got an idea what this means?
Take out content it hopes customers won't miss??!!?
That sounds rather strange. If anything, I would expect Ford to offer more options, not fewer. Anybody got an idea what this means?
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Joined: Jan 2003
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It usually means cutting features. For example this year on many models they eliminated Hood lights, Glove compartment lights, Went to cheaper grab handles on Taurus instead of the folding ones. Its usually small stuff. They may pick out options that people don't seem to care about and eliminate them. I kind of wonder about the power back window in the supercab, I can see that getting cut (just my opion, not fact).
