Ford: Trump Administration Could Be Good for Truck Sales
Infrastructure Investment, Housing Starts Could Spur Demand
“Make America Great Again” was Donald Trump’s campaign slogan, and while political campaigns are often more symbolism than substance, based on the titans of finance and business that the president-elect is selecting for his cabinet and key advisor positions, it looks like the policies of the Trump administration could be great for business. Joe Hinrichs, Ford Motor Company’s president of the Americas, said that if the incoming administration makes good on its promise of large-scale infrastructure investment, such activity would stimulate fullsize truck sales, according to Automotive News.
Ford’s all-time annual sales record for the F-Series was more than 930,000 units, set in 2004, and more than 1 million, if Canadian sales are factored in. The F-Series closed 2016 with 820,799 U.S. sales and 145,409 unit sales in Canada. Hinrichs said he hopes that the F-Series might top 1 million U.S. sales at some point in the future but added “customers will drive that.” However, he cautioned that the experience of the industry crisis between 2006-2009 taught the company that margin and cash flow is more important than overall sales volume or market share.
Adding to Ford’s dominance in trucks and SUVs in the near future will be the addition of the Ranger midsize pickup and Bronco off-road SUV. The Ranger will join the lineup as a 2019 model, and the Bronco as a 2020 model. The Ranger is expected to be the next generation model of the global model with market-specific changes for North America, and the Bronco is expected to be a variant of the global Ranger-based Everest SUV.
Source: Automotive News