About Ford:
Ford Motor Company is one of the largest American multinational car manufacturing company founded by Henry Ford in 1903. The company headquartered in Dearborn, Michigan is not just one of the largest but also one of the oldest car manufacturers in the entire world. There are several automobiles that the company has created but they are best known for the Mustang, F-150 and the Model T. Numerous ford cards including the ones mentioned before have been used in the film industry till date.
Over the last century, Ford has expanded its product line to include SUVs, trucks, and electric vehicles, and has a global presence in over 190 countries worldwide. The company has not stayed in the market for so long because of luck, they have evolved their ways throughout the years to remain relevant in the market. In the last few years, the company has been doing the same by heavily investing in electric vehicles. They have aims to receive 40% of their global sales from EVs by 2030.
With the current global economic situation, Ford has had to go through some challenges which affected production and caused a temporary halt to the production of some of its vehicles. However, the company has shown resilience and has adapted to bounce back. Ford has always remained committed to meeting the changing needs of consumers while also contributing to a better world with a focus on innovation, sustainability, and profitability.
Recent Development:
Recently, the automobile manufacturer has introduced a new variant for its US market: the 2024 Ranger. The Ranger is a midsize pickup truck which includes a new Raptor performance model. The Raptor which has a starting price of $56,960 is expected to increase high-profit variants to boost its bottom line as it invests billions in electric vehicles.
According to Gretchen Sauer, the marketing manager of Ford for the pickup, the Raptor is expected to account for about 10% of Ranger sales in the United States. He further announced that the Raptor will be the most expensive model they will sell in the Ranger lineup. He claimed that their overall transaction price for Ranger will increase as a result.
Credits: Ford
Challenges:
Sales of the Ranger decreased by approximately 40% in the United States last year as the automaker struggled with supply chain issues and focused manufacturing on the Ford Bronco SUV. The Detroit carmaker nevertheless relies heavily on the smaller pickup truck for its international sales, and it manufactures the vehicle in five different locations to be distributed in more than 180 markets.
With Ranger sales more than doubling from a decade ago to more than 300,000 vehicles last year, the Ford brand sold more than 1 million trucks globally in 2022. Despite this, industry statistics show that the Toyota Hilux outsells the Ranger in terms of global sales. The manufacturer intends to climb the mountain to take the top spot, and the Ranger Raptor’s inclusion in the lineup might help it do so.
Jim Baumbick, vice president of Ford product development and quality, asserts that “the goal has always been to climb the mountain to No. 1.” He suggested that they are without a doubt the No. 2 squad in the world, and want to finish first. The Ford Ranger sits between the company’s small Maverick pickup and its larger F-Series and full-size trucks. Since Ford unveiled the lauded Maverick truck in 2021, the Ranger hasn’t had a facelift until now.
Differentiation from the previous versions:
Ford made the Ranger larger and longer than the current-generation truck by two inches in order to set it apart from the other pickups. In addition to the 2.7-liter V6 twin-turbo engine currently found in the F-150 and Bronco SUV, the 2024 Ranger will also be offered with a 2.3-liter turbocharged engine that generates 270 horsepower and 310 foot-pounds of torque as standard. 400 foot-pounds of torque and 315 horsepower are produced by this engine. The 3.0-liter EcoBoost V6 engine that powers the Ranger Raptor, on the other hand, will come standard and is predicted to deliver the best-in-class 405 horsepower and 430 foot-pounds of torque.
The increase in price:
Ford is increasing the beginning prices of its conventional Ranger models in addition to the new Raptor model. The starting price for the base XL model will be $34,160, an increase of almost 18% from the $27,400 for the current model. The Ranger Raptor increases the vehicle’s top starting price by 34%, including the required destination charges.
Some people might be surprised by the company’s decision to increase pricing for the Ranger models considering how hard it is for many automakers to keep costs down as a result of supply chain disruptions around the world. Jim Farley, the CEO of Ford, however, said investors last month that although unique vehicles like the Raptor share about 80% of their parts with standard models, they have 30% greater contribution margins and a “twofold increase in capital efficiency.”