Ford F-Series Sales Threatened by Silverado, Ram

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By Douglas A. McIntyre Published
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Part of Ford Motor Co.’s (NYSE: F) teetering plan to improve its fortunes between now and 2020 depends on the sales of its flagship F-Series pickup. To give some idea of the scale of its importance, Ford sold 179,518 vehicles in September in the United States. F-Series sales were 59,863. However, the F-Series is losing ground to primary rivals — the Chevy Silverado from General Motors Co. (NYSE: GM) and Chrysler’s Dodge Ram.

F-Series pickup sales continued to lead those of all cars and light trucks sold in the United States. But its September sales were down 1% from the same month last year. In second place in U.S. sales, the Silverado sold 50,176 units in September, up a remarkable 54.4%. In third place, the Ram sold 36,612 units, higher than September 2013 by 30.1%. September was not an aberration. F-Series sales for the first nine months of the year were down 0.4% to 557,037. Silverado sales rose 5.9% to 382,153 in that time. Arguably Ram’s success is the most impressive, with sales higher by 21.9% to 319,868.

Optimists about Ford’s pickup sales say that a new version of the F-150 model will make sales rise sharply. It will go on sale later this year. The promotion for the truck is that it will be made of “military-grade aluminum alloy and high-strength steel.” The F-150’s “toughness” has been measured in laboratories, according to Ford. However, this may be lost on the typical pickup buyer.

All the new F-150 pickup features might not stem the rise in market share of the Silverado and Ram. They are “tough” too, presumably. In the case of Silverado, Chevy offers sharp discounts with the Crew Cab LT All-Star. It carries total incentives that add up to $8,500. GM may not make much profit on this, but it certainly has set a reason for people to buy its pickup instead of others. Ram promotes itself as “Motor Trend Truck of the Year for 2014.” Apparently, that is not enough to draw customers by itself. Ram also carries a financing plan of “0% APR and no monthly payments for 90 days.”

Ford may be about to launch a new version of the F-150. It will have to compete against a wall of incentives and rivals that already have improving sales.

ALSO READ: GM Sales Soar 19% in September on Pickups, SUVs

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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