Ford F-150 sales were down 2.4% through June. Some speculate a problem getting truck frames is part of the reason.
Despite all the fanfare that came with Ford’s new F-150, sales have been sluggish … until last month, when they jumped 13%, begging the question: why all of a sudden?
Prior to the July jump, F-Series sales were down 2.4% through the first six months of the year. Initially it was tied to several factors: a lukewarm reception from buyers while Ford officials noted that supplies were restricted.
The move to aluminum required a substantial changeover in equipment at the two plants in Michigan and Kansas that produce the truck. Ford need to shut down one plant to install the equipment while leaving the other one up and running: essentially it was running at half speed, crimping inventory.
Ford officials told TheDetroitBureau.com now that both plants are up and running again, inventory levels will be back up to normal levels by the end of September.
However, several media reports pin the problem on a supplier issue complicating the vehicle launch. Metalsa, a Mexico-based company that supplies the maker’s steel frames for the truck, is having problems producing the frames in the volume necessary to meet vehicle demand.
As a result, Ford is rumored to be turning to a second supplier, Tower International Inc., to supplement the frame production. A Ford official would not comment on the possibility, saying that the company doesn’t discuss its suppliers with the media.
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Tower’s public filings show the parts supplier currently makes body structures for the F-Series truck, according to the Wall Street Journal.
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Ford officials said that they sold more F-150s than any July ever and, in spite of $3,200 in incentives, they sold for a higher price than ever.
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“Customers are really enjoying the new F-150. They love the technology; they love the capability of the vehicle,” said Erich Merkle, Ford sales analyst, during the automaker’s monthly sales call. “What’s even more interesting is that while retail sales were up 13%, we have established and are maintaining record average transaction prices of $44,000 per truck.”
There’s been no “lukewarm reception” from buyers! Do your research – the F-150 has been flying off the lots in record time. Turn time has been 12-18 days!
“Despite all the fanfare that came with Ford’s new F-150, sales have been sluggish … until last month, when they jumped 13%, begging the question: why all of a sudden?”
Uh, because the fleet models started making their way out of the Kansas City plant, and because dealer inventories are increasing to where they should be.
That’s why.
Crier: There was a lot of uncertainty from potential truck buyers about using aluminum body panels as Ford did. It’s why it was considered a huge gamble at the time.
So, yes, there was a lukewarm reception from truck buyers. Since then, Ford has worked diligently to assuage the concerns and tout the benefits of using aluminum.
Part of the reason trucks are turning around so quickly is that, well, they just couldn’t build them in volume so when you make the best-selling vehicle and there aren’t many available, they’re going to fly off dealer lots.
As Ford officials mentioned, production levels are approaching normal levels, which is why they were able to post a substantial sales increase in July. I’m sure they’ll see year-over-year increases through the second half of the year. Mike S.