Ford dangles $10k discounts on aluminum F150 – in panic mode to regain market share

[kscarbel2]

Automotive News / July 16, 2015

Ford Motor Co. has begun offering discounts that can exceed $10,000 on its new aluminum-bodied F-150 pickup, which has been losing sales and market share this year as the automaker works to build inventory on dealer lots.

The company's website offers "up to $10,029 in total savings" on a 2015 F-150 XLT SuperCab 4X4 with the luxury chrome or sport package in some U.S. regions.

That model comes with a discount of $7,050 in other areas, according to Ford.com.

U.S. sales slid 8.9 percent last month for Ford's F-Series pickups, its top-selling line and most profitable vehicles.

The truck's share of the big pickup market fell to 28 percent in June from 33 percent a year earlier, according to Autodata Corp.

Ford blamed tight inventory caused by the conversion of two plants to build the trucks, the first mass-market vehicles to use lightweight aluminum so extensively.

“The truck hasn’t sold up to expectations for the most part,” said Akshay Anand, an analyst at auto researcher Kelley Blue Book. “This may be a hint that in certain parts of the country, the issue might just be more than supply.”

Improving inventory of F-150 is allowing Ford to offer more competitive incentives as part of its Summer Sales Event promotion, Erich Merkle, the company’s sales analyst, said Wednesday. He said overall incentive spending is down from a year ago and that the truck is selling for $44,100 on average, the highest transaction price in the segment.

“What will be more telling is whether the incentives start to go out nationwide,” Kelley Blue Book’s Anand said. “If limited to higher end trims and packages, this may not have a huge effect for the moment, as a truck still makes plenty of profit.”

Ford cut spending on marketing promotions per vehicle 16 percent in this year's first half to an average $2,736, according to Autodata, which found smaller increases by General Motors Co. to $3,427 and Fiat Chrysler Automobiles NV to $3,277.

Some dealers began advertising discounts of $10,000 to $11,000 off the new F-150 in June, Automotive News reported on July 1.

Asked about the dealer ads touting $10,000 discounts on F-150, Ford's top U.S. sales executive said the incentives were being offered by individual dealers.

"I can tell you that that number of $10,000 is commonly used by our competition," said Mark LaNeve, vice president of U.S. marketing, sales and service. "So you've probably seen a competitive response by a given individual dealer."

Sales of GM's Chevrolet Silverado truck jumped 18 percent last month, as its share of the full-size pickup market grew two points to 25.9 percent. Sales rose 0.6 percent for Fiat Chrysler's Ram pickup and gained 4.3 percent in the first half.

[Red Horse]

I do believe the issue is they have been building a lot of trucks that are fully optioned in their quest for the highest possible transaction price. Just could be they are at the point that they have satisfied a lot of the demand for such vehicles and the time has come to get a bit more aggressive with the rest of the market-not everyone wants or needs a 50 grand pick up.

[41chevy]

Still wish you could by a plain worker. Don't need sirus, a/c, leather,deep pile carpet and the rest of that stuff. Just a good old work truck you can hose off and hose out when your done.

[other dog]

I wish i'd bought the one my brother had now. He had...probably a 90-something model F150, 4 wheel drive, extended cab, 302 I think, looked good, and I know it was well taken care of. He mentioned one time when I was down there that he was going to sell it because he just didn't need it, he had just bought a Jeep. I said "whatcha gonna ask for it?" and he said "I'll take $2500 for it."

I said jokingly "you've done worn it out anyway" and he said "I'd take off for California in it right now and wouldn't worry about a thing."

I should have written him a check then. I got to thinking about it and said "I should buy that truck, the Ranger is so small and under-powered sometimes, and 4 wheel drive would be nice since they never plow the road over here when it snows..."

So I called, too late, he'd already sold it. I drive by car lots now and see all these pickups with 30 to 40 thousand dollar prices on the windshield and I just can't see it. You can buy a home and a little bit of land for that kind of money.

[rustydog]

Agree completely.....cannot believe that f-150 is the best selling vehicle..what?, in the world?? VERY overpriced in my mind...the way dodge used to be...I have fallen in love the the GM product...on my 3d one now...if you can find one with the right package combination...like just above "work truck" with a couple little niceties added, they are the most affordable, my opinion.

Tom..how are pics of week coming?? got some good seat covers this week??? a few mountains would be ok too....lol

[other dog]

Agree completely.....cannot believe that f-150 is the best selling vehicle..what?, in the world?? VERY overpriced in my mind...the way dodge used to be...I have fallen in love the the GM product...on my 3d one now...if you can find one with the right package combination...like just above "work truck" with a couple little niceties added, they are the most affordable, my opinion.

Tom..how are pics of week coming?? got some good seat covers this week??? a few mountains would be ok too....lol

coming up...

[41chevy]

Agree completely.....cannot believe that f-150 is the best selling vehicle..what?, in the world?? VERY overpriced in my mind...the way dodge used to be...I have fallen in love the the GM product...on my 3d one now...if you can find one with the right package combination...like just above "work truck" with a couple little niceties added, they are the most affordable, my opinion.

Tom..how are pics of week coming?? got some good seat covers this week??? a few mountains would be ok too....lol

Not every one wants a specific package. Nice to just go down the list and tick off what you want.

[RowdyRebel]

Yup. Big 4-door crew cab w/ cloth seats and a rubber floor, 8' bed, 4x4 w/ manual transfer case and manual lock hubs, and a MANUAL transmission. That last non-negotiable detail means IF I buy a new truck, it is either going to be an older Ford or a new dodge. I've always been a Ford guy...but shifting gears myself is more important to me than having the blue oval on the grille.

[thomastractorsvc]

The truck should only be a $30K truck anyway <<Kelley Blue Book’s Anand said. “If limited to higher end trims and packages, this may not have a huge effect for the moment, as a truck still makes plenty of profit.”>>

I went and looked at a few Chevy Crew Cab 4x4 Silverados 1500 the best price I could find was 38K to 40K, since no trade that would be around $500 a month, I thought real hard about getting a new truck but decided I didn't need one right now so I will keep driving my 2006 3500 Silverado 4x4 as my daily driver. I was hoping to semi retire it and use as my trailer puller, but I don't want to spent that kind of money on a pickup unless I absolutely have to.

[RowdyRebel]

Yup. If I'm paying that kind of money per month for that long, it had better be earning it's keep. Paid just shy of $800/month for a couple years when I bought my Mack, and it earns a paycheck...still does long after it's been paid off. For a vehicle that just stays parked most of the time? I won't spend more than I can make in a couple weeks.