By on July 16, 2015

Ford F-150 grey, side

Ford is looking to boost sales of its full-size F-150 by offering more than $10,000 in incentives for some higher-trim models in some parts of the United States, Automotive News is reporting.

Production issues have plagued the aluminum 2015 F-150 since its launch late last year. According to Ford, only half of the F-150’s normal inventory has been available since June, which as hampered sales. The automaker says dealer stocks will be full by the end of September.

The company’s website offers nearly $11,000 off of 2015 Ford F-150 XLT SuperCrew with Chrome or Sport packages in some parts of the country.

Screen Shot 2015-07-16 at 9.09.07 AMWe found this offer available in the middle of Michigan, near Clare, on Ford’s website. Other parts of the country may receive up to $7,050 off similar models.

“The truck hasn’t sold up to expectations for the most part,” Akshay Anand, an analyst at Kelley Blue Book, told Automotive News. “This may be a hint that in certain parts of the country, the issue might just be more than supply.”

Truck sales have been up for the first half of this year, but the F-150’s sales pace has been modest. F-Series volumes have dipped in each of the last five months, and second-quarter sales have dropped 6.5 percent.

 

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63 Comments on “Ford Putting Nearly $11,000 on Hoods of Some F-150s...”


  • avatar
    thornmark

    Biggest savings on the Edsel trim package.

    • 0 avatar
      Big Al from Oz

      thornmark,
      I don’t know if you could classify the new aluminium F-150 wonder truck as an Edsel.

      Ford has many niggling issue to resolve with this vehicle in order for it to become as successful as it was.

      Pricing is/was an issue.

      The reality is this new aluminium pickup didn’t provide the refinement, capability and promises that Ford had alluded to.

      So, you have many disillusioned and potential consumers out there.

      I would state the new 2015 aluminium F-150 wonder truck is moving slightly better than the 1500 Ram. Ford had to do something, even if it meant selling at a loss.

      • 0 avatar
        DenverMike

        Overhyped? Overpriced? Despite SNAFU production issues, sales are already close enough to *full production* half ton Silverado numbers, to make GM nervous, if not panic. The F-150 hasn’t come this close in over a decade, iirc ’04. The revised faces on Silverados and Sierras are obviously a desperate act.

        But are Ram and GM really better trucks, or better “values”, once the hype dies down and prices equalize with help from rebates, large and small? Debatable. HDC will tell you it’s none of the above.

  • avatar
    CJinSD

    I might buy an aluminum truck, although not from the galvanic corrosion people, but the 2.7 turbo is a bridge too far.

    • 0 avatar
      gtemnykh

      I was watching my brother’s buddy’s youtube channel, he’s a mechanic in upstate NY whose hobby is making videos of various repairs he does in the shop. Anyhow, he had a 2009 Ford Flex on the lift and I was appalled at the condition of this thing underneath. Beyond all of the suspension components in ‘full bloom,’ the rocker panels were completely rust, and almost perforated looking. Granted it’s the worst part of the country for rust IMO, but it was crazy to see it that bad on a car just over 5 years old. I would have hoped that the old Volvo-derived plaform would retain some of the old Swedish-corrosion resistant goodness. According to this guy, who does domestic and Asian vehicles almost exclusively (and mostly stays away from the European stuff) the trend has been that most domestic vehicles are rusting at significantly greater rate than some foreign mainstream makes. He actually singled out Subaru, VW, Toyota, and Honda as ‘better than average’ these days.

      The gnarly evidence:
      https://youtu.be/S4HV3Wd9M9w?t=388

      I recall Expeditions having problems with their aluminum tailgates corroding, paint adhesion problems?

      • 0 avatar
        danio3834

        Not uncommon at all for 6 year old vehicles in that region of any make to have rust perforations. See it all the time.

        • 0 avatar
          gtemnykh

          I dunno, my parents’ cars live in the worst possible scenario of being parked in a heated garage in Upstate NY (constant thawing/brining) and their ’09 RX350 looks WAY better than that, my dad’s ’07 Fit is starting to get pretty rusty shocks in the back and a slight rust tinge on the inner fenders (that will bloom in a few years I’m sure), but the rockers are nowhere as bad as that Flex.

          That Flex looks like my ’98 MPV did back in 2011 or so, before the front jack-mount points finally went soft due to rust.

          • 0 avatar
            danio3834

            There are many variables. All I’m saying is that I’ve seen literally thousands of vehicles of many different makes (American, Japanese and European) with rust perforations at the 5-6 year mark in the Quebec and upstate New York regions. I can tell you the most problematic areas that are prone to rust faster on certain models, but I can’t say that rust is decidedly more prone between the nationalities of the brands. By that metric, I would be forced to say the Japanese are the worst solely by virtue of Mazda.

          • 0 avatar
            gtemnykh

            Fair enough, mid 90s-early 00s Nissan is also really bad across the board IMO, just as bad as any Mazda.

      • 0 avatar
        dswilly

        I was told by a mechanic it has a lot to do with the quality of steel used. More and more auto manufacturers are buying steel with a high recycled content that is prone to rust. Our Honda Element suspension rusted terribly causing problems with stripped threads and broken bolts when maintained. A simple alignment nearly became an entire steering rack replacement due to the corrosion.

        • 0 avatar
          danio3834

          The particularly common corrosion issues you see on some vehicles are almost due to deficiencies in the anti-corrision treatment processes used by the manufcaturer rather than the actual base material being used. In the case of raw materials, one supplier will typically provide material to several different automakers. When the model of the one manufacturer is more corrosion prone than another, it’s usually because the treatment process at the plant was deficient or subpar by design. However, most automakers use similar multi-layer processes nowadays.

      • 0 avatar
        CJinSD

        My ex-gf’s 2001 Volvo XC70 was condemned for rust by the Volvo dealer in 2006. She didn’t know about rust warranties and basically took a total loss on a used car she’d paid cash for less than two years earlier. It turns out it had previously been registered in the north-east. She was a long-time Volvo fan, and blamed the car’s demise on Ford, which I don’t particularly agree with.

  • avatar
    DeadWeight

    Ford over promised by much and under delivered on the aluminum body panel, ecoboosted (problematic), expensive (to buy AND to produce) ugly-as-a-brick F Series, and this is just the beginning of Ford catching up to the incentives war GM & RAM have engaged in (Ford has no choice to join that war now).

    The F Series produces an estimated 80% to 88% of Ford’s TOTAL GLOBAL PROFIT. Think about that fact.

    If I were a full size truck buyer, I’d wait as long as possible to buy, whether I wanted a GM, RAM or F Series, as the incentives are only going to get better (especially given the business cycle certainty).

  • avatar
    APaGttH

    I’m reserving judgement.

    The new GM pickups were declared dead, dead, dead, this early in the game when they came out two years ago – along with predictions from TTAC and the B&B that the bloating inventory of GMT900 would be sold through about by — now.

    We know that neither has happened and GM is growing fullsize truck share with Ram (and Toyota) all basically at the expense of Ford.

    Production is still in ramp – when you consider all the trim option variations, all the engines, and the sheer number of dealers. Also we are entering the slow season over the summer for sales. Ford also has one other Ace up it’s sleeve. Other makers of fullsize trucks (Toyota, Nissan, GM, Ram) are in their end of year cycle now. Inventories tend to drop on the more desirable options and you have people waiting for next years model and bargain hunters. Ford on the other hand is building inventory.

    With that said, $11K on the hood when production is just getting up to speed is not a good sign on what Ford thinks.

    The CAFE compliant engines may have come at a bad time, and summer driving season coming to an end WTI and RBOB pricing is losing support. WTI now trading in a $52 to $54 range and RBOB under $2.00 a gallon for the first time in months.

    Although the Fords offer the best MPG, real world MPG on the GM trucks is generally hitting the sticker with V8 power and near V6 economy, and the Ram trucks are slaying it in the MPG department.

    I think we need to see data through the end of the year. October is going to be a key sales month for the F-150. It’s a big sales month, inventory should no longer be an issue, and the playing field across the different makes should be even from a supply stand point.

    • 0 avatar
      mike978

      All valid points. However if supply issues (7+ months into the new truck) were such an issue then Ford wouldn`t need large incentives. $7-11K count as large incentives. There does seem to be resistant to the cost of the truck, the use of aluminium and the fear about durability and repair costs associated with aluminium (whether warranted or not).

      • 0 avatar
        Pch101

        The typical incentives aren’t that high. Anything with $10k is a gimmick or possibly a bait-and-switch.

        • 0 avatar
          APaGttH

          Here is more to the story, as reported by Bloomberg.

          http://www.msn.com/en-us/money/companies/ford-offering-dollar10000-discount-on-new-aluminum-f-150-pickup/ar-AAd1SNU

          In the regions where there isn’t $10K to $11K on the hood, the rest of the country is getting $7K.

          Even $7K is a lot of money on the bread and butter profit maker for Ford that is only in the wild for 7 months, and inventory constrained.

          • 0 avatar
            Pch101

            I’ve looked at the incentives. They aren’t nearly that high.

            Don’t take the story out of context.
            ______

            “I can tell you that that number of $10,000 is commonly used by our competition,” said Mark LaNeve, vice president of U.S. marketing, sales and service. “So you’ve probably seen a competitive response by a given individual dealer.”

            ______

            In essence, LaNeve is denying that the company has such an incentive. Do you really think that the head of marketing is going to lie about incentives when they are tracked and easily verified by Automotive News and Edmunds?

          • 0 avatar
            ajla

            “Do you really think that the head of marketing is going to lie about incentives”

            I’ll go with possibly. Wasn’t LaNeve one of Wagoner’s top chuckleheads?

          • 0 avatar
            Pch101

            If you know where to look, incentives data is not hard to get. And the $10k isn’t being reported in those places.

            The news story is hype. It doesn’t tie the number to a reputable industry source. It’s a limited promotion at most.

      • 0 avatar
        pbr

        >> There does seem to be resistant to the cost of the truck

        Price is the main reason I don’t want a new truck. RAMs drive great, Ford are pretty good, GM dunno, guess they might be cheapest? Current pricing, incentives or no, make them easy to resist. For reference I own a middle-aged truck and drive it about half the time, so I should be an easy mark.

        • 0 avatar
          APaGttH

          I believe FCA is the best “value” from the big 2-1/2.

          The big complaint on the GM twins is they have sticker prices too high.

          • 0 avatar
            Pch101

            Marchionne is going for the jugular. When he says that he wants more volume, he isn’t kidding.

          • 0 avatar
            gtemnykh

            From what I’ve seen/heard mostly second-hand through shops, my own preference based strictly on reliability/build quality:

            GM>Ford>>>>Dodge

            After year 5, Dodges are at that point more or less 50% composed of Moog and other aftermarket replacement parts.

          • 0 avatar
            DeadWeight

            I just ordered a King Ranch Lariat Harley Davidson Orange County West Coast Chopper Chrome Especialle Diesel Stack Platinum 6″ Lift Rollin’ Coal Edition F250 with automatic sidesteps & Whale Foreskin Truck Nutz for $98,900 after a $18,000 ginger, blue eyed, military service purple heart, dyslexia rebate.

  • avatar
    Steve Biro

    Is it just me or, in addition to all that was written above, could it be that Ford priced its revamped F-150 a bit unrealistically as well? Just asking.

  • avatar
    Pch101

    In this particular case, it sounds more like a gimmick to get people into the showroom.

    With the truck market being what it is, some will go to the Ford dealer, not find the trim levels that they want, and then go buy a different brand at a lower price. Others will know this and won’t bother going to Ford in the first place. That’s bad for Ford on two levels: Not only did it not get the sale, but a competitor did.

    At this point, Ford has the highest transaction prices in the segment, which would suggest that they are selling what they have and with lots of options. But having tight inventories has its disadvantages when buyers expect to be able to mix and match what they want yet pre-ordering is not the norm.

    • 0 avatar
      Big Al from Oz

      Gimmick???

      Come on Pch101, you can’t be that stupid……or can you?

      • 0 avatar
        bball40dtw

        That discount is only available on the F150 SuperCrew XLT with the 2.7TT and either the Sport or Luxury package. It also assumes certain other discounts that most people do not get.

        • 0 avatar
          heavy handle

          I just checked and Ram is offering “up to $10k” off on some very specific specifications. I’m sure GM is doing the same, but I can’t be bothered to check (their web site is about as reliable as their trucks on my computer).

          I’m not sure anyone ever pays full list for a pickup anymore, they’ve always got tons of cash on the hood.

          • 0 avatar
            bball40dtw

            Looked at the Tampa paper today (traveling for work this week), and RAMs were being advertised at 30% off MSRP and Silverados as high as 25% off MSRP. It’s just the same as it’s ever been.

          • 0 avatar
            Pch101

            It’s difficult to use dealer ads to get a precise handle on current incentives programs, since they have a tendency to, well, lie.

            Edmunds details most of the current programs, and the typical incentives aren’t extraordinary. Anyone who expects to get $10k worth of rebates for everything on the lot is bound to be disappointed.

          • 0 avatar
            bball40dtw

            Pch-

            I completely agree. The tease on the Ford website via the Michigan Ford Dealers should be equally looked at with suspicion. You know that, but not everyone does.

          • 0 avatar
            Pch101

            “You know that, but not everyone does.”

            Don’t be coy: Did BAFO say something dumb again?

            (I just scroll past the guy — it’s safe to assume that he has nothing useful to add — yet the poor bugger keeps following me around like a mutt in heat.)

          • 0 avatar
            APaGttH

            The “new” GM truck is pushing two years old, so traditional incentives make sense.

            The F-150 is a redesign that has been supply constrained for most of it’s 7 months on the market.

            If we were talking all platforms were say 2 or 3 years old, I would agree with you that this is a non-story.

            This is a big incentive on a brand new platform that is the top seller in NA by a landslide for Ford.

            I wrote above on why I’m not so quick to say, “this is a big problem,” but everyone else is doing it is not a valid argument on a new truck out the door.

          • 0 avatar
            APaGttH

            …Looked at the Tampa paper today (traveling for work this week), and RAMs were being advertised at 30% off MSRP and Silverados as high as 25% off MSRP. It’s just the same as it’s ever been…

            Dealer specific “come on” ads should be taken with a huge grain of salt. They don’t indicate what is coming from the factory, just what units a dealer is willing to put in an ad to get people in the door.

            Oh, stock numbers KJ654ND2, 3, 4, 5, and 6? Oh we already sold all of those yesterday. However we have plenty of trucks for you to look at…

          • 0 avatar
            bball40dtw

            I think it’s a story. And I also think the numbers being reported should be viewed almost the same as dealer ads. They aren’t “official” rebates or discounts. The Ford website shows up to $3250 in rebates. The $10K off is sponsored via Michigan Ford Dealers, who sell F150s in a very GM truck heavy area (mid-Michigan).

          • 0 avatar
            Pch101

            It’s not a common incentive. The car business being what it is, one should not confuse targeted minor sales programs with what is being done with the entire product line.

            They’re not trying to blow out massive excess inventories, they’re trying to get buyers’ attention. Days of inventory have been low, transaction prices have been high; those are not indications of a demand problem.

        • 0 avatar
          CJinSD

          A couple of years ago, a local Jeep dealer’s ad caught my eye. I don’t really need a Wrangler, nor do I particularly want one. But did I want a new one $18K worth? It seemed interesting, until I read the fine print. Since I’m not a current Jeep owner trading in a competitor’s vehicle on my way to the VA with my newly minted college diploma, I would have had to start negotiating at $20,500.

  • avatar
    speedychico

    These trucks are just priced too high especially here in Ontario. Ford is running a employee pricing promotion now which reduces a $44K (XLT, 4X4 super crew with 300A option pack) truck to about $37K with an addn’l -$4K delivery allowance included. Financed for 60 months, the payment on that is $668/mo. Ouch. I visited a farmer friend of mine a few months back and he had just taken delivery of a fully optioned 2015 F-150 Platnium for … $73,000 and moaning about having to put some dirty pipes in the bed that day. lol

    I’ll keep my paid-for 2010 Fusion V6 SEL for a few more years I reckon.

    • 0 avatar
      tooloud10

      There is no $73k stock F150. I spent months researching my loaded ’15 Lariat purchase and the MSRP of a Platinum with every option is about $65k. If he paid a dime over $60k he wasn’t even trying.

      • 0 avatar
        Carilloskis

        He is in Canada (Ontario where Toronto the 4th largest city in north america is located) Canadians use different money than us Americans and with the exchange rate thats what the gentleman paid for his truck in Canada

  • avatar

    I’ve noticed the prices are way out of whack with what you’d pay for a Ram, Silverado, Sierra or Tundra. So this price correction, as I’ll call it, is a good thing…

  • avatar
    deanst

    With Ford trucks averaging $44,000, I don’t think Ford is hurting too much. The big discount seems to be for a truck few would want.

    • 0 avatar
      DenverMike

      It could be the Polar opposite of the “loss leader”. A the rare $80,000 King Platinum Horn Country with the mother of all rebates.

      • 0 avatar
        bball40dtw

        The Platinum and King Ranch trucks aren’t getting huge rebates. It’s XLTs right now. Ford is selling the bejesus out of the high trims. They are trying to better compete on price on the volume mid level trucks. They are still $40K-$50K+ trucks though.

        • 0 avatar
          Dan

          This. The $60,000 trims have so many features as to make their obvious competition seem like basic work trucks, they’re dirt cheap in the context of the less obvious competition of Escalades and Range Rovers, Ford is taking that to the bank.

          The $45,000 XLTs actually are basic work trucks and Dodge or Chevy will sell you the exact same thing for $35,000 all day long.

          Ten or eleven off isn’t a screaming bargain, just parity.

  • avatar
    Lou_BC

    The pickup buying public has grown accustomed to large rebates. They tend to be higher as fall approaches when next year trucks start to surface.

    I agree with APaGttH. It took GM a year to build steam with the GMTK2XX trucks. They had boosted prices and shortly thereafter had to start offering rebates.

    In my area the GMTK2XX trucks were very slow to gain a presence on local roads. The new Fords on the other hand have built up quickly.

    In Canada, Ram and GM has had rebates running all year. I’ve just noticed Ford ramping up rebates. GM currently has 10k on selected models and same for Ram. Ford has just recently joined the rebate race.

    Steve Biro – I don’t recall how much more expensive the new F150’s were in relation to the previous generation. The lack of rebates was minimal until recently.

  • avatar
    Big Al from Oz

    The new 2015 aluminium F-150 wonder truck is apparently not as wonderful as Ford is attempting to spin. For a couple of years now I’ve predicted this outcome for Ford.

    1. Ford’s FE claims didn’t come to fruition, a 1mpg gain in the real world. It is using load and tow, what nonsense when most pickups are car and SUV alternatives.

    2. It’s very radical for a generally conservative market segment.

    3. Overly expensive.

    4. Ugly.

    In reality if you remove Ford’s HD and “old” steel pickup and much more popular numbers from the total of the F Series you will find the 2015 new aluminium F-150 wonder truck is about as popular as the Ram.

    Ford has employed thousands of extra workers to produce a vehicle in far less numbers. Ask yourself is this good business?

    I do see comments from our long term Phord apologists attempting to align the new 2015 aluminium F-150 wonder truck with GM’s Silverado. How wrong and foolish can one be? Ford is in a far worse position with this vehicle.

    Ford has to do something to move these overly expensive and now loss makers of the lots to keep the wheels turning in the manufacturing plants.

    Ford has spent around $10 billion from my estimates to bring this on the market. How millions of the new 2015 aluminium F-150s does Ford need to sell to just pay for the new plant, equipment, labour, design and engineering, etc? Can Ford achieve this by selling these at a loss?

    Ford is not the manufacturer it was a couple of years ago.

    The Transit was a successful vehicle introduced into the US market. Why? Because it was a highly successful vehicle globally.

    Maybe Ford should introduce the global Ranger to help Ford with it’s pickup truck blues.

    I can see it now when the aluminium SuperDutys arrive…….Ram has a bigger market share and many potential F-250 PowerStroke SuperDuty people move into a Cummins powered Titan.

    Ford has screwed up with it’s pickups…….in the US, globally the Ranger with the Everest are hugely successful.

    Ford’s response;
    WE ARE HAVING PRODUCTION PROBLEMS. NUMBERS FOR SALE ARE LOW FOR THE NEW 2015 ALUMINIUM F-150 WONDER TRUCK.

    SO WE WILL GIVE YOU ALMOST $11 000 IN INCENTIVES AND REBATES, ETC.

    Ford, tell the truth.

    • 0 avatar
      sgeffe

      These things get uglier with each generation!

      The ones beginning in 2004 were awesome looking! Then, every new generation seems to become a twin to the last-gen F250, and the next F250 gets even more obscene!

      And don’t get me started on the EgoBusts! No replacement for displacement — give me a nice V8 with variable-displacement over a turdocharger any day!

      (No flames, please — just MHO, which probably won’t even get me into a Starbucks!)

  • avatar
    CoreyDL

    “Hey buddy, that sign says no trucks!”

    “That’s okay, cause this is a fam’ly station wagon righ’chere.”

    “Oh mkay.”

  • avatar
    Jerome10

    What I don’t understand is who can afford these high trim trucks?

    Go beyond headlines and a huge swath of America is struggling massively with jobs and wages.

    And then 50k pickups are flying off the lot?

    I’ve personally got a nice job that allows me to have a nice life and a little extra cash each month and when I price a new Honda Accord I nearly choke, much less a XLT f150 or an even higher trim level. These are “luxury car” prices on these things. You mean to tell me all these people could be driving 5 series?

    I really don’t see how they sell so well. Unless most are in debt like crazy to finance these. Or I’m just horribly cheap and still think you should get a family sedan for 20k.

    • 0 avatar
      RideHeight

      I think pickups have become the de facto American Luxury Car because CAFE has beaten sedans down into waist-high S&M capsules. And there are still an amazing number of wealthy Americans.

      But most of their kids won’t be.

    • 0 avatar
      gtemnykh

      Good question, I often contemplate this myself. I’d be curious to see some graphs of how sales break down as far as work truck trims vs mid-grade vs Platinum/High Country/etc, and their distributions across the US.

      A lot of it must be people taking out some insane loans, blue collar guys that just have to have that nice new truck. Wealthy Americans likewise have a taste for well-trimmed crew cabs to tow toys out to the OHV parks and lake houses, no idea what percent of sales that could make up.

    • 0 avatar
      dshiffer

      Makes sense – The wealthy are doing quite well, so that is why the expensive trucks are selling. The “mid-priced” ones aren’t nice enough for the wealthy client, and they are too expensive for the middle class folk.

    • 0 avatar
      BrunoT

      Americans would rather eat dog food in retirement than have their neighbors and co workers think they can’t afford the luxury model. The good news is many will be, and deservedly so.

    • 0 avatar
      nocaster

      You must not live near Texas, Oklahoma, or other oil producing states. Jacked up, coal rolling, F250’s are all the rage with the truck nutz oilfield crowd.

    • 0 avatar
      sgeffe

      Heaven knows that when my broker only got me a four-figure trade for my 2006 Accord, I puked in my mouth a little at the $400+ payment on the car in my avatar!

      It’s worth it, and I thank the Lord above that I’m blessed to be able to afford it, but it is in the upper limit of my comfort zone.

  • avatar
    Jeff S

    Low or no interest financing for 60 months or more and 3 year leases are what moves a lot of expensive vehicles. Most people cannot afford these trucks but they can if you fit the monthly payment to their pay check. This is not sound financial advice but it is one way to move the product which is a major reason most are in debt and have no savings. Leases are good for the dealers because they can qualify a buyer for a more expensive vehicle than they can afford and three years later have a repeat customer and a pre-owned vehicle that they can make a larger profit on. Most people would be better buying a vehicle that they can afford and not being chained to payments forever. Ford will sell these trucks anyway they can and the same is true for GM and Ram. I might have the oldest vehicle in the driveway or parking lot but at least it is paid for and I am not enslaved by the monthly payments.

  • avatar
    TomHend

    Big picture, we’re broke.

  • avatar
    an innocent man

    If I just order the hood, can I still get the cash?

  • avatar
    BrunoT

    1. XLT is closer to the low end than high end models.

    2. If you have a production shortage, you would have lower sales due to lack of inventory, not because the price is too high. So you would not reduce the price via rebates/incentives. Try again.

    3. The reason sales are lower might be that they’re a good deal more expensive than comparable models of 3 years ago. My 2012 FX4 supercab with lux pkg and the works stickered about $41,000. Got it with taxes for $37,100. I checked when they came out and they were edging towards $50,000. This is in a low inflation environment. Nobody wants to pay more for aluminum that merely fixes bad engineering that made the previous version too heavy.

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