The new Ford Motor Company (NYSE:F) aluminum-bodied super duty pickup has recently undergone its shipping from a Kentucky factory. This is reportedly one of the most successful, most profitable models of this category.
President of Ford Americas, Joe Hinrichs claimed that this model is one of the strongest products in their portfolio. This was stated in a presentation on Tuesday at a conference JP Morgan Chase & Co. in New York.
This model is the first completely new super duty model to be released by Ford in over 18 years. It was announced by the second largest automaker in the united states that the profit margins of the organization may be at risk, as it seems that there is no longer visible vehicle market growth in the united states.
Despite all this Ford pursued the shipping of their new Super Duty model. As could be expected in the second margin profits were pressured.
This on top of increased incentives and slow sales took its toll on Ford. Resulting in a pretax profit of Ford North America falling by 4.8% in the second quarter sitting at a total amount of $2.7 billion.
The Market Share Monopoly.
The super duty pickups account for approximately 43% of the total US vehicle market share. Therefore making the super duty leader of the vehicle market.
Furthermore, this new super duty released by Ford will not only be more economical than all other super duties in its category but it will also be included with a variety of 17 new features, which includes driver assistance technology.
Although Ford has increased its incentives as of this year. Hinrichs explained that Ford will remain disciplined in regards to the pricing of their products. Due to their restructuring during the last recession. Ford is prepared for the next recession.
Furthermore, he claimed that Ford remains confident of their business in North America. Stating that even in times of a crisis Ford will be able to maintain a sustainable profit margin.