Does this concern anyone? Ford decides to cut back production due to material costs and gas prices?

The slump in sales now is not totally related to the economy.

Lets see, The 2009 model is coming out in just under 2 months. Current F-150 owners are either A) very happy with their current truck or B) If wanting to buy new, why not wait until the 09's arrive? (Although there are some pretty good deals on the 08s right now!) Sure there will be dip in sales. But I do not see a true truck lover going out an buying Focus!

Anyway, this sure sounds fishy to me.

What do you think?

 

Recession ....... and then everyones done in......

 

A lot of it is because of the high prices in gas. My friend works at a local Ford dealership and they are getting next to no buyers for trucks & SUVs, but tons of buyers for Fusions and Foci.

He also said the market for used trucks/SUVs have completely dropped on the trade-in side, with customers getting a huge shock on how much their trade-ins are now worth.

Their supply for F150s, Explorers, and Expeditions have balloned as well.

I still think there are plenty of people who will buy trucks/SUVs, but it will be people who really need them. So much of the sales of those vehicles were with people who wanted them, not needed them, and that is what will change.

BTW - It's not just Ford, it's all the big truck makes like Chevy, Dodge, Nissan and Even Toyota have big problems selling their full sizes.

 

Supply and Demand

lots of trucks/Suv's right now with little incentive to buy because of gas.

also, with the coming release of the 09's, they gotta clear inventory somewhat. it happens...I wouldn't say it's a conspiracy

 

not unless you prepared 4 it

 

Sales of any vehicle surge at every restyling and fall off as the look gets 4-5 years old. Sales of any vehicle that gets poor gas mileage will fall off when gas goes up in price (if gas was $free, what would you drive?).

If residual/auction/used prices on big trucks is running $2-3000 lower than people guessed 2 years ago, you can bet they won't continue to push super cheap 2 year leases that aren't profitable. Cheap leases and $5000 rebates are fine to get through a short sales dip, but at some point it makes more sense to make a little money on a few trucks than lose a little money on a lot of trucks. If your market is now mainly the guy who "needs" a truck, you can get away with fewer rebates and make a little money. Instead of artificially dropping prices to keep sales high, they drop production to match the real demand.

The F-150 has looked basically the same since 2004, gas is $4/gallon, there are 4 or 5 competative vehicles where there used to be 3. Steel prices are high, oil prices have driven plastic resin prices up. Every single part on a vehicle was born somewhere outside the assembly plant and has to take a ride or two on something deisel powered to get there.

.....What exactly do you find "fishy"?????????

 

I read in Car & Driver Ford dealers were concerned that Ford only planned to make 181,000 trucks available at the end of the '08 production to last them until the '09 trucks hit the lot. At current sales numbers, that was only enough trucks to last 90 days. So, I'm not so sure sales are all that bad this year. Ford just dumped all the remaining 181,000 2008's on the dealer's lots.

I drove through the used car lots yesterday. A LOT of used trucks out there, but I only saw one F-150. It was mostly Dodge and Toyota (Tundras & Tacomas) on the lemon lots.

 

I went to several Ford dealerships yesterday (buying my son a Ranger), the deals on trucks are unbelivable right now, their pratically giving them away. Wish i was in the market to buy a new F-150. Mine is paid off and i don't want new paments.

 

I've heard that GM is fearing the New restyled F-150 & Dodge Ram, due to come out this fall. Their truck sales are slow right now just like anybody elses! When these new vehicles arrive this fall, their truck sales will be even worse!.........

 

the rest of the newsletter I received from Ford regarding them cutting back production on F150's, Superdutys, Explorers, etc., was that they are ramping up production on the smaller, more fuel efficient cars, as that is what is selling right now. They are adjusting to the direction the economy is headed. If they start selling out trucks faster than they can make them and dealers are screaming for more, I would expect you would see Ford announce they are ramping UP F150 production.

My '05 F150 daily driver is now parked 95% of the time. Has little trade in value. I can stomach filling up for $45 in my 4-door that gets 27 mpg, as opposed to filling up the f150 for $80. I know the monthly savings doesn't offset the 2nd car payment, but I'd rather be giving my $$ to the auto manufacturers than the oil companies. Just my $.02.

 

With the trade in value of our trucks dwindling every week with the rising cost of fuel, it just reinforces that I won't ever be getting rid of my truck & taking a financial bath! Not that I had intended to anyway! I'm kinda fortunate that other than work which is 10 miles away, everything I need is literally within 2 miles from the door of my house or closer! Stores, Gym, Restraunts, even the Local Speedway! www.seekonkspeedway.com ! My friend who races at the speedway every week says racing fuel is $7.00 a gallon right now!..

 

At this juncture Ford is making a smart business decision to boost sales by producing more of the smaller and fuel efficient cars. But I forsee now huge production cut in the trucks & suvs. Ford definately needs to focus on increasing the mileage in the trucks and suvs to at least 17 21

 

Naw, it'd concern me if they continued building an excess stock of vehicles that the dealers can't get rid of.

 

I would concen me if i was working on the line that produces F-150's.

 

Again? I read on this site last week that Ford was doing the same thing.