Ford’s truck lineup
So far in this series, we looked at how Ford Motor Company (F) responded to criticism about its move to invest in Mexico. We discussed why the move is important for the company. However, it’s just the half picture. Last year, Ford shifted its truck production to Ohio from Mexico. Let’s see how Ford’s truck lineup is doing in fiscal 2016. What does this move mean for investors?
Strength in Ford’s truck sales
Last week, Ford published its truck sales report on its official website. Some of the key highlights of report were as follows:
- The company sold 10,160 units of F-650 and F-750 trucks as of August this year—higher than the total number of these trucks sold in fiscal 2015.
- Ford’s medium-duty truck sales rose 59% year-over-year.
- Ford’s largest trucks had the best year-to-date (for the first eight months) sales performance since August 1997.
Shift to Ohio from Mexico plant
In the last few years, Ford worked to redesign its F-650 and F-750 trucks. In August 2015, the company shifted the truck manufacturing to its Ohio assembly plant from Mexico.
With the shift in production to the Ohio plant, Ford claimed that it secured more than 1,000 jobs in the US.
Kevin Koester, Ford’s medium-duty truck and super-duty fleet marketing manager, said “Giving our customers the choice of two exclusive powertrains, available across all body styles and designed specifically for the unique needs of the vocational truck market, has really helped drive sales of our new trucks.”
Note that the F-650 and F-750 are part of Ford’s F-series truck lineup. Ford had the best selling commercial trucks in the US for the last three decades. In the commercial trucks segment, Ford is ahead of its closest peers (VCR) including General Motors (GM), Fiat Chrysler (FCAU), and Toyota (TM).
In the next part, we’ll find out what Wall Street analysts estimate for Ford’s stock ahead of the 3Q16 earnings season.