By Ford Motor (ticker: F) recently launched the newly redesigned 2024 F-150s, reaffirming the significance of the traditional truck in Ford’s lineup. While the all-electric F-150 Lightning has garnered a lot of attention, the traditional F-150 remains Ford’s most important vehicle.
For over 40 years, the F-150 has been the best-selling vehicle in the U.S., and for almost 50 years, it has held the title of the best-selling truck. Its dominance in the market is unparalleled. As of August, Ford has already sold 514,716 F-150s in America, representing a 22% increase compared to the previous year and accounting for approximately 38% of Ford’s total sales in the U.S.
Despite the fanfare surrounding the all-electric F-150 Lightning’s launch in 2022, sales have been hindered due to manufacturing problems, making up only about 2% of total F-150 units sold. However, it’s worth noting that around 10% of F-150 sales in 2023 are hybrid models. Andrew Frick, the vice president of Ford’s traditional car unit, Ford Blue, intends to double the mix of hybrid sales to at least 20% in the coming year.
To achieve this goal, Ford is slashing the prices of 2024 hybrid models by approximately $2,000, aiming to make them more accessible to consumers. This strategic move is part of Ford’s broader plan to boost hybrid sales and further solidify their presence in the market.
But that’s not all Ford has in store for the 2024 F-150. The new models come equipped with improved towing capabilities and enhanced driver-assistance features. One standout feature is the “Pro Access” tailgate, which includes a convenient step and a horizontal swinging door, providing easier access to the truck bed. Andrew Frick is particularly fond of this new addition, highlighting its practicality and user-friendly design.
In conclusion, while the all-electric F-150 Lightning may have garnered significant attention, it is the traditional F-150 that remains Ford’s cornerstone vehicle. With its impressive sales history and continuous innovation, the F-150 will undoubtedly remain a force to be reckoned with in the U.S. automotive market.
The Power of the F-150: A Closer Look
A Game-Changer for Truck Customers
Truck customers will care about the new features. F-150 typically accounts for about 35% of Ford’s total U.S. sales volume. Include the smaller Ranger and Maverick trucks and the number jumps to about 45%. The Ford Ranger has been redesigned for 2024 as well.
Challenges on the Horizon
In an ordinary year, new trucks boosting sales and market share might be enough to boost Ford stock. This year is a little different.
Investors are worried about the current labor negotiations with the United Auto Workers union. Wall Street believes a strike is likely. The current contract expires on Sept. 14. What’s more, interest rates are high, making new cars more expensive to purchase than they already were after new car prices rose some 20% from pre-pandemic levels because of supply-chain disruptions. The transition from gasoline to electric powertrains also looms large over the entire industry.
The Impact on Ford Stock
It’s a lot for investors to digest. Coming into Wednesday trading, Ford stock has fallen about 16% over the past year, while the S&P 500 and Dow Jones Industrial Average have gained about 13% and 11%, respectively.
A new F-150 might help close that performance gap. It certainly won’t hurt.
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