Ford - scale up Pro production instead of the trims that are languishing

[TechTutor]

I see LOTS of Lariat and XLT languishing on lots, not just in my area but in many places. I think instead of scaling back production of the Lightning, Ford needs to stop building unaffordable trim levels like Lariats and Platinums and instead increase production of the Pro trim. Make your profits on volume.

Bring back the mid 40k Pro and I will buy ! The price increases have taken away the state EV incentive (at least in NY).

Oh, and stop with the multiple shades of gray / silver. Bring back Atlas blue, it’s available for the ICE so we know you have it on hand.

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[mr.Magoo]

Bring back the mid 40k Pro and I will buy !

And I want an iPhone 15 Pro for $600 (not really, I'm an Android guy, but you get the idea) and a kWh of electricity for $0.05, but I'm pretty sure neither will ever happen.

I doubt Ford deliberately chooses to build only Platinums and Lariats to boost the image of the Lightning and line their pockets with insane profits.

Sure, in some ways they do, but on the other hand I'm also sure they'd sell the Pro at a lower price if it made financial sense.

Look / Google historical Lithium prices to get an idea of what happened to their (Fords) cost structure, granted, Lithium has gone down since the price adjustments, but so has demands of vehicles so one thing will offset another.

 

[swajames]

Yes I'm shocked that Ford isn't jumping all over that "lose money on every sale but make it up with volume" business plan.

 

[mattskr]

Yes I'm shocked that Ford isn't jumping all over that "lose money on every sale but make it up with volume" business plan.

Investors, already not too happy with the F ticker, would probably not like that idea.

 

[TechTutor]

And I want an iPhone 15 Pro for $600 (not really, I'm an Android guy, but you get the idea) and a kWh of electricity for $0.05, but I'm pretty sure neither will ever happen.

I doubt Ford deliberately chooses to build only Platinums and Lariats to boost the image of the Lightning and line their pockets with insane profits.

Sure, in some ways they do, but on the other hand I'm also sure they'd sell the Pro at a lower price if it made financial sense.

Look / Google historical Lithium prices to get an idea of what happened to their (Fords) cost structure, granted, Lithium has gone down since the price adjustments, but so has demands of vehicles so one thing will offset another.

You hit on my point exactly - I don’t want the iPhone 15 Pro, as the iPhone SE will suit my needs at $429.

I don’t believe they are losing money on the Pro, they are choosing to build the luxury trims because they make more profit on them. EV have less parts and cost less to produce (Lithium costs have increased thoug).

What I’m getting at is that Ford ( and other manufacturers ) are cutting back on production citing reduction in demand. My suggestion is to reduce pricing and demand will rise.

 

[hturnerfamily]

I think we all believe that we know best how the auto industry works, although I'll bet that most of us really don't... it's a business, and while we want everything everyone produces to be 'cheap' and economical for us, the fact that most ANY auto manufacturer producers almost NO 'base' vehicles for mass sales, tells you the truth: advertising the 'low cost' 'entry level' vehicle to capture ATTENTION is what the model is for, but the real money for the LONG TERM viability of the business is in the OPTIONAL profit centers made up on the higher trims...

A) I see FEW single-cab F150's on dealer lots... they just don't move, and they are just not in demand
B) I see mostly LARIAT and higher trims, and the optional 'jacked up' versions of F150's on dealer's lots: this is what people are buying: we are spoiled to LUXURY and 'what we want'... NOT the basics.
C) With the majority of folks financing vehicles for the long term, the difference in a 'base' model and the trim they REALLY want is little...

This is not Volkswagan from the 40's... it's TODAY's buyer that is deciding the business.

Having said all that, and while I appreciate those who really want that 'entry level' PRO Lightning, like mine, for the original ADVERTISED $39,974 price, with NO negotiations... I realize that I hit the JACKPOT with mine... I don't relish the idea of paying double for a 'Lariat', just because that happens to be what most dealers are ordering or have on their lots. I feel for those, like me, who only wanted a 'base' LIGHTNING, with a 'base' Battery, with only 'vinyl' seating, and without all the 'bells and whistles' that most other owners have paid 'up' for... mine is just UNBELIEVABLE without all that! Congrats on those who hit the jackpot... and hopefully, yes, Ford will produce more of the PROs... we can all hold our breaths.

 

[TechTutor]

Yes I'm shocked that Ford isn't jumping all over that "lose money on every sale but make it up with volume" business plan.

I don’t believe they are losing money on every sale. They are rolling research and development into actual production costs to create that illusion. Ford (and others) have not yet recouped all of their long term costs yet. They are making profit on every sale - just more so on the higher trim vehicles. I know that we will never see the price go back to $39,997, but like I indicated in my original post, if they were something like $44-45, I suspect they would sell. Use the Maverick as an example of a good product at a good price point - they can’t make enough of them to meet demand. If mass adoption is the goal, then the manufacturers (not just Ford) are going to have to make them available / affordable to the masses.

 

[mr.Magoo]

You hit on my point exactly - I don’t want the iPhone 15 Pro, as the iPhone SE will suit my needs at $429.

Except that your iPhone SE equivalent isn't a F150 Pro, you're more looking at a single motor, 2wd, Ford Ranger version with a 150 mile range battery.

 

[TechTutor]

Except that your iPhone SE equivalent isn't a F150 Pro, you're more looking at a single motor, 2wd, Ford Ranger version with a 150 mile range battery.

Im not certain that is an accurate comparison, but to use your logic the iPhone 15 Pro would then be the Lightning Platinum. I don’t want a Platinum. I want Ford to find a way to make the base truck (Pro) at a better price point. I know they are never going to be able to go back to the original sub $40,000 - but $45,000 should be attainable. Tesla has slashed pricing why can’t FoMoCo ?

 

[Grumpy2]

There is a good video about this topic of initially making/selling higher price models at Lucid. Basically it is only with extremely deep pockets that auto makers make/sell low margin models initially. Look at all the other makers EVs, there isn't a model equivalent to the $40k Lightning Pro.

 

[TaxmanHog]

The reality is .....
No PRO's outside of fleet orders for the rest of MY-2024
MY2024 order bank closes at or near the end of January 2024

 

[Newton]

Im not certain that is an accurate comparison, but to use your logic the iPhone 15 Pro would then be the Lightning Platinum. I don’t want a Platinum. I want Ford to find a way to make the base truck (Pro) at a better price point. I know they are never going to be able to go back to the original sub $40,000 - but $45,000 should be attainable. Tesla has slashed pricing why can’t FoMoCo ?

Although I don't have any inside knowledge, I'm pretty sure that the Pro, XLT, Lariat, and Platinum all cost close to the same amount to produce excluding the difference between the SR and ER battery. Labor, shipping, raw materials and administrative costs are all going to be about the same between a Pro and a Platinum.

So what that means is that the Pro is a more expensive vehicle overall for Ford to produce than a Platinum, even if they have to sell the Platinum at a huge discount. What the OP is complaining about is the price, I believe, and Ford could easily empty their lots if they wanted to. The SR Lariat wasn't selling, they had a special discount, and they disappeared overnight. What I see around me now are SR XLTs, the much more expensive ER XLTs don't stay on the lot which says that it isn't about price. If it is, Ford has plenty of room to move on price, pre-pandemic getting $10K off of MSRP was fairly common. Since they are not doing it they must not be feeling pressure.

The other thing to mention is that the current state of the lots has to do with Ford's production issues this year. Nothing was shipping for quite a while (I never saw an XLT) and now that they have resolved some issues a whole bunch of XLTs are hitting the market. They literally couldn't sell the Platinum for awhile because of the light bar recall. The state today doesn't say much about the state of EVs in general or Ford in particular.

 

[invertedspear]

A) I see FEW single-cab F150's on dealer lots... they just don't move, and they are just not in demand
B) I see mostly LARIAT and higher trims, and the optional 'jacked up' versions of F150's on dealer's lots: this is what people are buying: we are spoiled to LUXURY and 'what we want'... NOT the basics.
C) With the majority of folks financing vehicles for the long term, the difference in a 'base' model and the trim they REALLY want is little...

This logic is flawed unless you know order numbers as well. You may only see a few single cabs because they sell quickly. You may see a lot of Lariat+ trims because they aren't selling and the cancelled orders are piling up. Even your C point is assumptive. I would absolutely have gone pro if I could have gotten it with an ER battery. I've spent more money on my XLT putting in TPU floormats and neoprene seat covers, basically making it a Pro.

 

[Newton]

I would absolutely have gone pro if I could have gotten it with an ER battery. I've spent more money on my XLT putting in TPU floormats and neoprene seat covers, basically making it a Pro.

And that is exactly what Ford (and any other company) does to you. The reason that they are not producing a flood of cheaper Pros is because the game is not about volume, it is about profit. They could absolutely flood the market with reasonably priced pickups, but every reasonably priced pickup that they sell is potentially an insanely overpriced one that they don't sell. They want you to pay more than you are comfortable paying, ideally just below the point at which you say "nope, too expensive."

Ford still has a monopoly on full sized electric pickups in the US, so don't expect anything to change soon. They don't have to worry about losing sales to Chevy right now. This is also why they really don't care that much if some trucks are sitting on dealer lots, they made money that way for years.

 

[hturnerfamily]

none of us 'know' the real reasons, if even Ford themselves know... but, the reality is that while we might 'assume' that just producing more PRO versions at your '$45-$50k' pricing would 'suddenly' solve any issues, is very presumptive, and uninformed. It's a business, period. Ford can do whatever they wish - no one is 'forced' to buy anything from them, or, Tesla either, for that matter. We may not 'like' what is available, but you can only do what you can do. Buy it, or don't. Complaining is not solving anything.

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