Ford's Profit on an Expedition

[Fossil Farm]

Interesting article suggesting that Ford can make $20,000 on each Expedition sale.
Guess they are trying to figure out a way to increase production at its
manufacturing facility in Kentucky. Wonder how much they make on each F150/250
sale. Hope the link to the article works OK.

https://www.ohio.com/news/20190319/ford-boosts-output-of-big-suvs-for-second-time-in-two-years

 

[zzvyb6]

Keep in your mind the fact that they had to design, prototype, test and build a salable vehicle: Engine line, tear up a body shop, add a paint line, durability testing, Global Requirements Certification, rollover mitigation, interior, parts and emissions certification. All that costs a LOT of money. I'm very familiar with GM's costs. It would take well over a $billion in cash to deliver a vehicle to dealers. There's also no guarantee the thing will sell, either. If gas goes up over $4.00 a gallon, you may be able to get one free with an Escort. It's a Suburban wannabee, anyways. AND, all that profit offsets the big losses from all the small cars that you have to sell in order to achieve EPA required, Government mandated Corporate Average Fuel Economy (CAFE). BTW: its about the same to produce an econo-box as a truck unless it's carry-over stuff from an existing vehicle. Engine, body, chassis, tires, glass, electrical, shipping, labor, plastic and fluids.

 

[Fossil Farm]

Thanks for the info. Thought there was more to the story than just profit. I know there is a lot that goes into
producing or updating a vehicle, much more than most people realize.
I guess I don't worry as much about MPG than folks that drive a lot of miles every day.
Would rather have a beefier vehicle then a tin can, even if gas prices go up.
Guess I grew up when 15 MPG was pretty good.

 

[Garandman]

GM sales almost double the number of Tahoes and Yukons as Ford sells Expeditions. About 112,000 GM's versus 64,000 Expeditions in 2018.

The Expedition is more sophisticated, with IRS and the twin-turbo EcoBoost engine. But never underestimate Americans' ability to buy giant, ill-handling vehicles.....

 

[Wagtail]

Keep in your mind the fact that they had to design, prototype, test and build a salable vehicle: Engine line, tear up a body shop, add a paint line, durability testing, Global Requirements Certification, rollover mitigation, interior, parts and emissions certification. All that costs a LOT of money. I'm very familiar with GM's costs. It would take well over a $billion in cash to deliver a vehicle to dealers. There's also no guarantee the thing will sell, either. If gas goes up over $4.00 a gallon, you may be able to get one free with an Escort. It's a Suburban wannabee, anyways. AND, all that profit offsets the big losses from all the small cars that you have to sell in order to achieve EPA required, Government mandated Corporate Average Fuel Economy (CAFE). BTW: its about the same to produce an econo-box as a truck unless it's carry-over stuff from an existing vehicle. Engine, body, chassis, tires, glass, electrical, shipping, labor, plastic and fluids.

And don't forget the wages/benefits that the company needs to generate IOT pay the workforce.

 

[atsah]

Also add in any warranty work that can be involved.

 

[om21braz]

I can remember reading about the Cadillac Seville. About mid-stream of production during the Northstar years that if it was the only new car produced and sold in US - the volume would be such to allow selling them for $ 3500 and make a profit.

 

[Sawyer Rob]

Isn't the Expedition the model folks are smelling exhaust in?? Like 3,000 complaints, and are now being investigated for those complaints. A couple of the cases, people passed out and crashed...

Even the Expedition police vehicles, that were making cops sick, Ford said that was caused because the police added equipment that let exhaust in...

But, Ford says it's not happening, there's no exhaust leaks.

I just think the Ford of today, isn't the Ford of old...

As a side note, my buddy just bought a NEW F150 a month ago, and it already left him stranded along the road, over heated when it lost all the coolant.

SR

 

[ddbackhoe]

Keep in your mind the fact that they had to design, prototype, test and build a salable vehicle: Engine line, tear up a body shop, add a paint line, durability testing, Global Requirements Certification, rollover mitigation, interior, parts and emissions certification. All that costs a LOT of money. I'm very familiar with GM's costs. It would take well over a $billion in cash to deliver a vehicle to dealers. There's also no guarantee the thing will sell, either. If gas goes up over $4.00 a gallon, you may be able to get one free with an Escort. It's a Suburban wannabee, anyways. AND, all that profit offsets the big losses from all the small cars that you have to sell in order to achieve EPA required, Government mandated Corporate Average Fuel Economy (CAFE). BTW: its about the same to produce an econo-box as a truck unless it's carry-over stuff from an existing vehicle. Engine, body, chassis, tires, glass, electrical, shipping, labor, plastic and fluids.

So, bottom line, those new trucks I wont be buying because of price are because the profit margin is only 34.99 0/0? Every company has to make a profit to keep the doors open. The percentage is what’s always open to interpretation. If I’m selling gas and tell you I make 2.5 cents per gallon, what have I really told you?

 

[atsah]

GM people bashing Ford's, GM has had plenty of problems themselves, including being bailed out with our money that we never got back.

 

[LD1]

Profit margin is what it is. The price is more dictated by supply and demand than anything. A MFG, if smart, is gonna sell for the most profit possible.

As price goes up, demand goes down. As price goes down, demand goes up. But where on the chart gives the most profit is where they want to be at

 

[Sawyer Rob]

GM people bashing Ford's, GM has had plenty of problems themselves, including being bailed out with our money that we never got back.

IF that was aimed at me, first off I do have a Ford one ton along with my other vechiles...

Secondly, GM paid the money back in stocks, and Obummer sold them off cheap, so guess that's not ALL GM's fault

Third, at the time it was reported that Ford finance also got some $/help, so...

SR

 

[atsah]

If I aimed it at you I would have quoted you. Are you paranoid? Since we are here. The stock story is a faux.. And Ford didn't get a bailout.. Do you believe everything you read? You said Ford isn't like they use to be, well it's a good thing aren't, the 70's and 80's and some 90's were nothing but junk..

 

[dgl24087]

Isn't the Expedition the model folks are smelling exhaust in?? Like 3,000 complaints, and are now being investigated for those complaints. A couple of the cases, people passed out and crashed...

Even the Expedition police vehicles, that were making cops sick, Ford said that was caused because the police added equipment that let exhaust in...

But, Ford says it's not happening, there's no exhaust leaks.

I just think the Ford of today, isn't the Ford of old...

As a side note, my buddy just bought a NEW F150 a month ago, and it already left him stranded along the road, over heated when it lost all the coolant.

SR

Explorer not Expedition

 

[Sawyer Rob]

Thanks for that dgl,

SR

 

[Sawyer Rob]

If I aimed it at you I would have quoted you. Are you paranoid? Since we are here. The stock story is a faux.. And Ford didn't get a bailout.. Do you believe everything you read? You said Ford isn't like they use to be, well it's a good thing aren't, the 70's and 80's and some 90's were nothing but junk..

You mean they USE to be even worse than they are now??? Dang!! lol

SR

 

[atsah]

You mean they USE to be even worse than they are now??? Dang!! lol

SR

Seems F-150 sales are fairly high, you think..

 

[Garandman]

Seems F-150 sales are fairly high, you think..

Whenever I see a Ford vs Chevy pickup argument, I always wonder "How did 12yo boys afford a pickup?" :laughing:

 

[atsah]

Whenever I see a Ford vs Chevy pickup argument, I always wonder "How did 12yo boys afford a pickup?" :laughing:

We bought a 2016 Ford Transit and a 2016 Tahoe, they are not otherwise "emotionally engaging."

I hope I didn't make a mistake yesterday but I went to the dark side and bought a cadillac xts 4. My Ford has started the nickle and dime fight with my bank account so time for it to go..

 

[RyeThomas]

I recently purchased my first Ford, used Expedition. Our Tahoe Hybrid starting giving us electrical gremlins at 140k miles. It was things I could not fix in the driveway and could not be diagnosed without the Dealer Scan device.
What I found is the prices on a new Full Size SUV are astounding(family of 5 and we are not small people), but the diminished value of some of these when you roll off the lot New is even worse. We picked ours up for about 1/2 what new would be, ended up with a 17 with 40k miles. I do not understand, even if I was wealthy I could not bring myself to buy a new vehicle these days when you factor in the hit you take in depreciation.

Anyway, Automakers can make there money up front on someone else.

It is the same with pickup trucks though, New work trucks of all brands can be priced out over 100k. Go over to a truck Forum and laugh, the big three has run out of improvements so now they are just marketing unnecessary gimmicks and people are eating them up. a new CGI Block? what is wrong with the cast iron block that has already proven it can go 1 million miles. 1000ftlbs Torque, 30k max tow, need I go on. If you need to tow 30k you should probably be looking at a larger vehicle to do so.
My 2013 Ram 3500 is about to flip 100k, I think l will be keeping it the next 10 years.

Anyway sorry for the rant. I am very happy with my Ford Expedition for what it is worth. I hope they do make money off people willing to spend it.