Ford F-150 marketing campaign fifth image

USA: Ford F-150 sales fall on account of supply constraints

March 11, 2015

A report by Detroit Free Press says that production downtime at the F-150’s two manufacturing facilities for retooling has resulted in a production loss of at least 90,000 units since mid-2014.

The overall sales declined about 2% from sales during the same time last year. Sales of the F-series trucks during February dropped by 1% to 55,236 vehicles (February 2014: 55,882 vehicles).

Limited production is causing supply constraints and Ford is losing prospective customers to rivals like GM and Toyota.

The report says that Ford executives are assuring that operations are going as per the plan and dealers should be fully stocked by June-end. In the meantime, the company might keep losing out to its rivals who are making the most from the fall in gasoline price. For instance, sales of Ram were up 7% in February this year. Sales of Chevrolet Silverado and GMC Sierra increased by 24% and 6% respectively.

The report reveals that the company is limiting fleet sales to maintain inventory as a result of which fleet sales dropped by 18% in February this year.

The new trucks are currently built only at the company’s Dearborn Truck Plant but the Kansas City Assembly Plant should start production of the F-150 this month, adds the report.

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  1. Where will this go? The strength of Steel versus the lightness of Aluminum. Unless Ford can remain competitive price wise, and can show a significant MPG gain, it will find traction in the market. If it can’t, it will be their biggest market blunder since the Edsel.

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