Ford blows away earnings expectations as consumers buy up trucks during pandemic

[401don]

A couple of years ago I cringed every time Ford or Gm had a big quarter based on trucks and suv's because it seemed so short-sighted. At the same time they were being coaxed into building small cars in the U.S. When they finally got it right with a car like the Cruze nobody wanted them anymore. Now it appears they were right to stop building cars and focus on suv's of all sizes because that's what the market wants. I tend to agree with Jim Kenzie. He's the guy on Canadian tv's Motoring TV show who says suv stands for stupid ugly vehicle. Now that we have enough oil to last for decades the industry is going all in on electric. It's a tough industry to run a company in if you don't have a crystal ball.

[ABetterDetroit]

A couple of years ago I cringed every time Ford or Gm had a big quarter based on trucks and suv's because it seemed so short-sighted. At the same time they were being coaxed into building small cars in the U.S. When they finally got it right with a car like the Cruze nobody wanted them anymore. Now it appears they were right to stop building cars and focus on suv's of all sizes because that's what the market wants. I tend to agree with Jim Kenzie. He's the guy on Canadian tv's Motoring TV show who says suv stands for stupid ugly vehicle. Now that we have enough oil to last for decades the industry is going all in on electric. It's a tough industry to run a company in if you don't have a crystal ball.

I also am stunned at the massive popularity of the return of the station wagon. Lift them some, add front wheel dominate all-wheel drive and everyone has to have one. A amazing about face in what people want in their vehicle. What moms with kids prefer has influenced almost every single persons preference in their vehicle.

[EGrant]

A couple of years ago I cringed every time Ford or Gm had a big quarter based on trucks and suv's because it seemed so short-sighted. At the same time they were being coaxed into building small cars in the U.S. When they finally got it right with a car like the Cruze nobody wanted them anymore. Now it appears they were right to stop building cars and focus on suv's of all sizes because that's what the market wants.

The margins on trucks are also much bigger than cars. I don't know the exact numbers, but I remember when Ford announced the end of the Fusion and Taurus, they talked about how much more profitable the trucks and SUVs were compared to sedans, even if they sell fewer trucks. And apparently they are doing ok upselling sedan drivers into the crossovers like the Escape and Edge.

[Cincinnati_Kid]

The margins on trucks are also much bigger than cars. I don't know the exact numbers, but I remember when Ford announced the end of the Fusion and Taurus, they talked about how much more profitable the trucks and SUVs were compared to sedans, even if they sell fewer trucks. And apparently they are doing ok upselling sedan drivers into the crossovers like the Escape and Edge.

They make $10-12 thousand or more on each full size pickup or SUV they sell. So it's a no-brainer to devote their entire lineup to those types of vehicles.

[Richard]

They make $10-12 thousand or more on each full size pickup or SUV they sell. So it's a no-brainer to devote their entire lineup to those types of vehicles.

The truck market is insane right now,people are getting more for used trucks then they paid for them new a few years ago.

My only thinking is what happens if there is a change in DC and fracking,which is keeping the cost of fuel down,and the older emissions requirements that were parlayed kicks back in,that could devastate the truck market with a stroke of the pen.

When gas hit $4 per gallon you could not hardly give a truck away and the larger suvs were the number 1 trade in with the cash for clunkers program.

Then what happens?

I remember when the only people that had trucks were those who were in business or had a slide in camper,now you even have soccer moms buzzing around in them.