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How do you know they aren't doing that already? Do you seriously think the automakers just walk in the door throwing money around uncontrollably and then say later "oh, our truck cost is really high now...how did that happen????"
My goodness...I don't know where some of you guys come up with this stuff. I spent 5 years working on the F-150 having conference calls and meetings nonstop to squeeze out pennies and nickels from everything we could. We negotiated some supplier contracts to the tenth of a penny for crying out loud. You can't get any more nitpicky than that.
The fact is, raw material costs (aluminum, copper, steel, rubber, etc) have all gone through the roof in the last 10-20 years not to mention significant regulatory/fuel mileage mandates adding cost to the vehicles everywhere as well. (Over-excessive Roof Crush mandates, for starters.)
The $20,000 numbers people are throwing around is potentially a Selling Gross number, not the actual net profit per vehicle sold. That is an ignorant way to look at it. On the F-150, Ford Motor Company (not the dealer, but Ford itself) NETS about $6,000 profit per truck. That is after all expenses including overhead, corporate salaries, R&D, plant costs, fixed costs, etc. So again, they aren't going to take that $50,000 pickup and all of a sudden cut the price by $10,000. They don't have that much room to work with.
Spot on i agree people on here come up with some crazy stuff on here. Especially when they have never worked in the industry and working at a dealer dose not count.
GM, Ford, Chrysler and other automakers are not fooling anyone with their "incentives".
- 84 months with 0% rate. All you're doing is stretching your loan.
- No payments for 6 months. All you're doing is 'kicking the can down the road'.
- Shop on-line through their websites and they'll deliver your purchase to your house. All you're doing is paying the price they want you to pay since you can't haggle.
You want people to buy cars during these times - SLASH THE DAMN PRICES. People are not stupid (at least most of them are not). A $50,000 truck/car is still $50,000 after 6 months of no payment and 0% interest for 7 years. Reduce vehicle cost and it may attract the buyers.
Rant is over.
Actually it seems like trucks are what's selling, so the point of this is ???.
Maybe, if American automakers make a better quality, more fuel-efficient, more affordable, and practical vehicle, then they would sell more of them.
Until then, many American buyers (including myself) will continue to buy "foreign" vehicles.
First of all, that is a tired/old argument. Doesn't it seem odd to anyone that Ford and GM can make the most bulletproof trucks on the market, while companies like Toyota and Nissan struggle to just put them together. Meanwhile, on the car side, the opposite has been true to some extent.
The basics of doing cars and trucks is no different. There is no good reason for a company to be good at one but not the other. Maybe some economic and political factors are at play here that impact the resources allotted to each? I understand some people don't have inside knowledge about everything and I get that. I just hate when uninformed people go out of their way to bash good American companies when they don't know the whole story.
i put about 22,000 miles on my car each year so reliability is very important to me. i dont really know too much, just stuff i google online. i just googled reliable cars and the list from consumer reports (most and least reliable) looks not so great for american brands.
i put about 22,000 miles on my car each year so reliability is very important to me. i dont really know too much, just stuff i google online. i just googled reliable cars and the list from consumer reports (most and least reliable) looks not so great for american brands.
Consumer Reports is horrible and basically a fraudulent enterprise when it comes to reporting vehicle quality. Dealt with them personally for years, unfortunately. They are as crooked and biased as you can get.
From my research, automakers net about $20,000 for each pickup sold. https://gmauthority.com/blog/2018/08...up-on-average/
It cost Ford on average about $27,000 to build each F-150. So, offering deep discounts might be the way to attract buyers in order to stay afloat and not become another Sears, JC Penny etc...
I just went on Ford's website and "built" the cheapest and most expensive F150's that I could. The cheapest rings in at $27,515 and the most expensive comes in around $74,000.
I'm not sure what Ford's profit comes out to on each one, but it is quite a swing between the least and the most expensive versions. I suspect they could probably lower the price by almost 1/3 across the board and still come out ahead.
I just went on Ford's website and "built" the cheapest and most expensive F150's that I could. The cheapest rings in at $27,515 and the most expensive comes in around $74,000.
I'm not sure what Ford's profit comes out to on each one, but it is quite a swing between the least and the most expensive versions. I suspect they could probably lower the price by almost 1/3 across the board and still come out ahead.
Lower the price by 33%......OMG you guys are funny.
No freaking way. As I said in my previous post Ford averages about $6000 NET profit per F-150. Obviously the low end trims are less than that and the high end trims are more.
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