General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsFord Falls as Cheap Fuel Raises Concern New Truck Too Expensive
By Keith Naughton Dec 15, 2014 12:48 PM ET
Ford Motor Co. (F), starting to ship its new aluminum-bodied F-150 pickup, fell as much as 4.4 percent after Deutsche Bank AG downgraded the automaker on concern that the truck wont command premium prices amid low fuel costs.
The shares dropped 3.6 percent to $14.46 at 12:44 p.m. in New York after earlier slipping to $14.33, the lowest price in about a month.
Ford, the second largest U.S. automaker, said last week it has shipped more than 5,000 new 2015 F-150 models, with fuel economy improved by as much as 29 percent due in part to its light-weight aluminum body panels.
With U.S. gasoline prices at a 5-year low, consumers may not be motivated to pay more for the F-150, Rod Lache, an analyst at Deutsche Bank in New York, said yesterday in a note. Lache, who downgraded the shares to hold from buy, also said automakers face regulatory cost burdens in part to achieve average fuel economy of 54.5 miles per gallon in the U.S. by 2025, that are unprecedented.
Fords new 2015 F-150, which incorporates a number of advanced but costly powertrain, light-weighting and safety technologies, represents one of the most prominent early examples of this forthcoming change, Lache wrote. We question whether consumers will pay the price for this content with $2-$3 gas.
more...
http://www.bloomberg.com/news/2014-12-15/ford-falls-as-cheap-fuel-raises-concern-new-truck-too-expensive.html
MrScorpio
(73,631 posts)yeoman6987
(14,449 posts)In their pocket and that should always be welcomed.
Motown_Johnny
(22,308 posts)bus fares have not dropped
workinclasszero
(28,270 posts)for a one dollar profit.
Socal31
(2,484 posts)Lower gas = higher demand for big V-8 toys.
ProfessorGAC
(65,248 posts)Lower gas $ = working class poor folks having more money left over after necessities.
The other side of the coin, no?
LanternWaste
(37,748 posts)"The other side of the coin, no?"
One of many, many sides rather than merely two.
LanternWaste
(37,748 posts)This newer truck uses aluminum in the bed and the carriage which makes the truck much lighter (and more fuel efficient) than its predecessors. According to many heavy truck aficionados, the phrase "I'd never drive a truck made out of beer cans" is common.
Jesus Malverde
(10,274 posts)http://www.wenzelmetalspinning.com/steel-vs-aluminum.html
Not only is it a weaker metal it's more expensive out the door. The decision is do I pay more to the automaker up front and let him get the chunk of money that would otherwise be spent on fuel or do you keep the auto makers from getting a larger chunk of money and spend it on fuel.
FORD wants an expensive truck. Most people finance their cars and the more expensive the vehicle means more money from interest. Much of the profit comes from interest over many years, with a small amount made at the time of the sale.
Rex
(65,616 posts)Now get in the back of the line.
sharp_stick
(14,400 posts)just how fast the price of oil changes.
I remember growing up in Alberta back in the 80's just after the oil market tanked. There were bumper stickers saying "Dear God let there be another oil boom. I promise I won't piss it all away this time." The Government was spending a lot of time talking about how they had to diversify the economy so it's not so dependent on oil.
Anyway fast forward to 2011 and the Government back there was in full bluster telling the rest of Canada to STFU because they are the actual economic engine of Canada so the rest of you can take your opinions and pound sand. Did they diversify their economy after all that time? Fuck no...Oil's over $100/bbl we've got a ton of that shit, we're golden don't worry about it.
Now...oops...Maybe we should start talking about diversifying our economy.
I've started to notice that every asshole with a Hummer in the garage who couldn't give the piece of shit away over the last few years is starting to put them back on the road. Because you know, why not flush all that money down the toilet, the price of oil is down and it's never going to go back up.
Initech
(100,108 posts)Jackpine Radical
(45,274 posts)than to drive the workers to destitution. His strategy for keeping the unions out was to pay his workers better than the competition. He wanted his workers to be able to afford his products.
Initech
(100,108 posts)OffWithTheirHeads
(10,337 posts)Now that my solar panels are up, I'm going Hybrid asap. I don't care if they GIVE gas away.
Jesus Malverde
(10,274 posts)Wellstone ruled
(34,661 posts)make Margin Calls on Oil. With some 3 billion shares out there for Ford,they get clobbered as a result. This turd from Deutsche Bank isn't the sharpest tool in the drawer. JP morgan did the same about 3 weeks ago and then the Oil Book crashed big time. Ford is a 40 dollar top next year. Just the 1% ers rotating out of Commodities to Consumer Goods. Hang in there,this is just the biggee's stealing again.
onethatcares
(16,192 posts)and who the hell can afford it? Landscapers?
I drive a 1998 Chev 3/4 ton with a tow package and haven't made enough in years to make payments on a new vehicle along with the insurance upgrade.
Motown_Johnny
(22,308 posts)and we tend to buy one new Ford every year (at least we have for the last 4-5 years in a row now) including a new F-250 just last week.
I would need to see the math on the fuel economy v. cost increase, but.... my gut tells me it won't help us much. Our trucks tend to be hauling trailers or pushing snow. The actual weight of the vehicle itself isn't the end all and be all of our fuel economy. Also, the F-150 is to light a truck to be worth buying. We do have a Ranger (one of the last ones made) and a Transit Connect, but they are specialty vehicles that do light jobs and travel a lot more than most of our other trucks. The 250 is as light a truck as we can consider buying and the 350 and 450 series are more useful for most of our crews.
Ford made a major investment in more fuel efficient vehicles. The hybrid C-MAX series and the EV Focus along with plug-in hybrid Fusion and Focus models are among the primary examples. It is a long term approach that is bound to play out well. These low oil prices can't last forever. Odds are they will be gone by the time summer driving season rolls around. This really is just a short term phenomenon so enjoy it while you can.
Also, the fuel economy standards are still in place. If people are deciding to buy heavier vehicles then they are going to end up paying for it. It will end up being a virtual bidding war to see where the ceiling is.
onethatcares
(16,192 posts)$40K? with a 6 foot bed? or a crew cab and a 4 foot bed?
I'm just wondering cause I can't afford to buy one.
Motown_Johnny
(22,308 posts)but do not know the exact price. I was told it was about $1800.00 nicer than we needed because it has some options like power windows that we didn't really need.
It is a standard cab with the larger bed and it has a snow plow which I believe was included in that 40K number.
It really is a nice truck. The owner of the company I work for is going to plow with it this winter (he almost always uses the newest truck). We have 2 other F-250s and this one seems even more powerful than the others. Maybe it is geared differently, or maybe the HP really is higher. I only drove it a few miles to, get the company logo and phone number put on it, so am not sure why this one seems heftier but it does.
Purveyor
(29,876 posts)2015 Ford F-150
Price Range: $25,420 - $54,680
Read more: http://www.motortrend.com/cars/2015/ford/f_150/#ixzz3M1h4VNvw
Jesus Malverde
(10,274 posts)Thanks!
Populist_Prole
(5,364 posts)All of them: Tundras and Dodges being the worst, but they're all fucking mammoths now. All have to have big, imposing front facades/grills and seems to be a requirement that the rear bumper be a minimum of 5 feet off the ground. I rented on recently and I swear the thing should have come with a length of knotted rope attached to the cab ceiling just to pull myself in/out.
It's a shame because the newer engine technology has enabled us to have our cake and eat it with lots of power and good fuel economy....that is until you strap six thousand freakin' pounds to the engine and drivetrain.
Motown_Johnny
(22,308 posts)I looked into why the Ranger is no longer being made (since I still drive an old one) and the best answer I could come up with was something like "the cost of all the new safety requirements makes it more cost effective to just build full sized pickups".
Along with the SUV craze, I guess anyone buying a pickup wants a big one. If you want something mid-sized then look into a 6 cyl SUV.
Jesus Malverde
(10,274 posts)Not so good for some parts.
I've experienced fuel saving at the expense of having stuff break repeatedly. No more GM for me. I learned my lesson.