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  • Ford Sacrificing Short-Term Profits for Long-Term Gain with 2015 F-150

Ford Sacrificing Short-Term Profits for Long-Term Gain with 2015 F-150

Plant Shutdown/Transition Expected to Affect Profits in 2014

Jan 30, 2014
It seems Wall Street lives for quarterly results, and strategic investments in new products can often impact short-term financial results with the payoff coming down the road in more efficient and productive operations. Following the announcement of the aluminum-bodied 2015 Ford F-150, the company is already handicapping its future results by telling investors that a longer-than-average plant shutdown and retooling to prepare for the 2015 F-150 will affect earnings in the short-term, as well as lower operating margins in the new year, according to an investor's report and Automotive News.
The Dearborn truck plant, which will be the first of the two plants that builds the F-150 to transition to the new platform, will shut down for 13 weeks as new tooling is installed for the 2015 model. The Kansas City plant will shut down later in early 2015, as it continues to produce the outgoing body style throughout 2014.
Although the 2015 F-150 is by far Ford's biggest single product launch in calendar 2014, it's not the only one. An all-new Mustang will be headed to showrooms later in the year, and a refreshed Lincoln Navigator, Ford Expedition, and Lincoln MKC compact crossover are also coming, among other models, including the 2015 Transit full-size van, which will also be built in Kansas City alongside the F-150.

Source: Ford, Automotive News

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