Certain Ford Dealers Set to Offer $10k Discounts on F-150
Ford Offering Up To $7,050, Individual Retailers May Discount Even More
In an effort to combat flagging sales of the 2015 F-150, Ford plans to offer big discounts on the pickup, according to Automotive News. Traditionally, the F-150’s sales are better than Chevrolet Silverado and GMC Sierra sales combined, but June 2015 told a different story, with the GM twins outselling the Ford by a small margin.
Ford will attempt to reverse that trend with discounts of up to $7,050 on certain models, like the F-150 XLT SuperCab and SuperCrew equipped with the 2.7L EcoBoost V-6. Automotive News even claims that in some areas, trucks will be selling for more than $10,000 off sticker. That means that some people might be getting their F-150 XLTs for around $30,000, which is almost unheard of in fullsize truck circles nowadays.
Ford blames limited dealer supply for the F-150’s loss of market share, as retooling the F-150’s plants to produce the aluminum-intensive 2015 pickup took time and pinched total production. However, the company is also fighting an uphill battle with its use of aluminum for the truck’s construction. While many truck buyers are ambivalent regarding the F-150’s aluminum bodywork, Ford has had to answer to the claim that the material is more expensive to repair, is less trustworthy than steel, and isn’t cost-effective from a production standpoint.
Luckily, Ford gets to claim segment-highest average transaction prices for the F-150, at $44,100, but we see that as something of a double-edged sword. High transaction prices mean more profit per unit sold, but those prices could be driving customers to less expensive competitors. Higher profits on fewer units isn’t something most mainstream manufacturers aspire to.
Even so, the company is confident that the F-150 will continue its decades-long streak as the bestselling vehicle in America. Amid stiff competition from GM and Ram, whose market shares have been increasing since last year, Ford thinks that as dealer supply improves and incentives get into customers’ hands, the F-150 will retain its confident sales lead.
Source: Automotive News