The ’15 Ford F-150 has only been on sale since November, but early data indicates the new model will be a success despite early questions regarding its aluminum-intensive architecture.
Doug Scott, Ford truck marketing manager, says early customers are choosing well-equipped trucks that are driving up average transaction prices.
“In February, 73% (of F-150 sales) were either Lariat, King Ranch or Platinum,” he says during a conference call. “On average with the ’14 model the (high trim-level mix) was about 30%. It’s not something that will sustain, the mix will spread and even out, but it is a rich launch mix.”
Scott says Ford started the trend of offering trucks in near-luxury trim levels, and still remains far ahead of its top competition, including the Chevrolet Silverado and Ram 1500.
“Chevrolet is probably 20% high-series mix and Ram about half that,” he says. “We were in the high-series truck business in the early 2000s, before our competitors thought about it. We’re continuing that plan to develop that high-series business.”
ATPs have been on the rise for more than a decade, where the average F-150 sold for about $26,000. Today, a top-end truck can eclipse $60,000 when well equipped. Despite the rapid ascension in ATPs, Scott says Ford is being careful not to price out low- to mid-level buyers.
“We can’t leave behind or ignore the more value-oriented end of the market,” he says Our price band has stretched, but at some point we’re going to see some sort of plateau. As the economy improves we’ll see that low- to mid-customer return. We’re mindful that the gravy train doesn’t go on forever.”
The new truck also is selling quickly, averaging just 18 days on dealer lots, well below the light-duty fullsize pickup truck average of 105 days, making it Ford’s fastest-turning vehicle last month. Despite the rapid turn rate, F-150 sales have been either down or flat due to deteriorating inventory levels as Ford transitions production to the new truck.
About 21% of February F-150 sales were of the new model, up from 18% in January. Despite the relatively low supply of ’15 F-150s, average transaction prices were up $2,000 vs. year-ago.
Ford’s Dearborn, MI, truck plant currently is producing ’15 models, and the Kansas City, MO, facility is scheduled to begin output of the new truck today.
Once the Kansas City plant is at full production in the second quarter, fleet deliveries will begin in earnest, which will bolster F-150 sales. Typically, fleet deliveries, including government, daily rental and commercial, account for about 20%-30% of total F-150 sales.
Combined, the Kansas City and Dearborn Truck facilities will have capacity to produce more than 700,000 Ford F-150 pickups per year for availability in 90 markets globally.
