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Ford Sees Pent Up Demand For Trucks

Wednesday, November 28th 2012. | 2013 Ford F-150, 2013 Ford F-250, 2013 Ford Super Duty, News

Their reasoning being that while consumers are switching to smaller more efficient cars, they will still have a need for pickup trucks. With some indications of a recovering economy, the housing market should start to pick up and this means new house construction. That means good news for Ford as it has the best selling pickup trucks on the market and will be able to get their share of this demand. Ford makes its highest profit margins on pickup trucks, which will compensate for the move to the smaller more efficient cars which have a lower profit margin (think fiesta, fusion and focus).

Another reason Ford, Mark Fields specifically, thinks that there will be an increase in demand is that the average age of a pickup truck is older than it has been for some time. Over half of pickup trucks are at least 10 years old, a good portion is actually 15 or 20 years old. This means they’ll need to be replaced. Ford is king when it comes to trucks, especially in the heavy duty market, so they should be reaping the benefits of these current economic conditions.

In my opinion I am not sure if we’ll be seeing a surge in the pickup truck market, but maybe more likely a slight increase or even just the market staying right where its at. That’s sort of the best, better and good scenarios. But with this confidence from Ford I can at least know that the market will not take a dive in favor of compact cars, but rather they should co-exist nicely.

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