By on April 28, 2016

2016 Ford F-150 Limited

News from Dearborn this morning will please recent purchasers of F-150s, Transits, and Fiestas — Ford Motor Company is absolutely on fire financially, earning $2.5 billion in a very large first quarter.

Ford’s pre-tax profit of $3.8 billion was a record for the company.

Net income at the Glass House more than doubled from last year’s $1.2 billion, translating into a record operating margin of 9.8 percent. Ford’s global market share is up by two-tenths of a percentage point ( to 7.1 percent), thanks to sales gains in North America, Europe, and Asian-Pacific markets.

“The first quarter was an absolutely terrific start to the year — an all-time record for the company, with very strong performance across the business,” Ford president and CEO Mark Fields said in a statement.

Ford reported after-tax earnings of 68 cents per share, up from 39 cents just a year ago.

Record gains in North America tempered losses in the South American market, where things are tough all around thanks to the recession in Brazil. Tanking oil prices and political strife caused losses in the African and Middle Eastern markets as well.

Unsurprisingly, high-profit vehicles such as the F-150 and cash cow SUVs are responsible for much of the North American gains. This time last year, Ford was struggling with low F-150 inventories due to preparations for building the pickups out of aluminium.

Making scads of dough is always a good thing, doubly so when it shifts the conversation away from all the truck recalls we reported on yesterday.

[Image: Ford Motor Company]

Get the latest TTAC e-Newsletter!

92 Comments on “Ford’s in the Money: Automaker Posts Record Profits Because You Love Trucks...”


  • avatar
    CoreyDL

    Credit for this has to go to Mark and his new Fiesta! He’s propping up the company.

  • avatar
    Kyree S. Williams

    I have to say that, as of 2015, the F-150 is a venerable luxury vehicle in certain trims. If I were going to spend $45K – $60K on a nice car that I wanted to keep for a while, I’d be more inclined to get an F-150 King Ranch or Platinum than a sparsely-equipped 528i or whatever for the same money. With the F-150, you get excellent resale, durability and utility. Plus, if I’m meeting clients or driving them around, even a loaded-up F-150 seems more humble and honest than any German luxury car in their minds. Of course, I’m not *that* fond of truly big cars, but I could get used to it.

    They are overpriced, but I see why people buy them in droves. Ditto for the other domestic offerings.

    • 0 avatar
      yamahog

      There’s definitely some weird cognitive dissonance around lux’d up trucks.

      When I started a new job, I drove my manager and myself to lunch in Lexus LS430 (which is immaculate on the inside) and he joked, ‘how much were they paying you at your last job?’.

      He drives a loaded Expedition. And an LS430 can be had for ~8k in my neck of the woods.

      • 0 avatar
        CoreyDL

        The brand is the important thing for people, when they make comments like that. He saw it was a clean Lexus which was large, good/nice, and had no idea how old it was or how much they cost to buy used.

        This is what poor people -think- they’re doing when they buy a ratty CL600 at a BHPH.

        • 0 avatar
          Hydromatic

          I had a slightly scuffed up LS400 during college (amazing what $1500 can buy you at a public auction) and people had the same basic reaction as the Expedition guy when they heard the word “Lexus”. It was a bit annoying, to be honest.

      • 0 avatar
        crtfour

        I pulled up to work one day in my 2004 XJ8 (which is in very nice shape) and one of the newer guys commented “man I wish I had your money!” He had no idea the car is 12 years old and worth $6k

    • 0 avatar
      photog02

      Very good point; trucks can be luxurious. I have a 2015 F150 Lariat with the “luxury package”. As I’ve been looking for a new car for my wife, I’ve been shocked at what you can’t get on some vehicles. I have air-conditioned seats in my pickup truck – why do the BMW 2-series, MB C-Class, or Volvo S60s even have them as options?

      • 0 avatar
        Mandalorian

        Totally. Even a slightly more pricey Expedition/Suburban is a better choice for the money vs a 5-Series/E-Class. They’re just more comfortable and these days especially with the pickups there’s not much of a penalty in fuel economy.

      • 0 avatar
        Dave M.

        I can’t tell you how irritated I am the redesigned Outback didn’t add cooled seats last year. Maybe not on a base or Premium model, but it should be available on the Limited 2.5 or 3.6R. The 3.6R loaded nearly hits $40k….

    • 0 avatar
      VenomV12

      That’s the truth, that’s why a lot of guys in Midwest areas that own companies tend to drive a lot of F150 Platinums and so on because they are basically invisible. A BMW or Mercedes or even an Escalade will set off the alarm bells in people but that $60,000 plus pickup truck, no one bats an eye or even thinks twice about it.

      • 0 avatar
        highdesertcat

        “a lot of guys in Midwest areas that own companies tend to drive a lot of F150 Platinums and so on because they are basically invisible.”

        Ditto with the Southwest. And they trade them for brand-new ones every 3-5 years, maximizing the retained value and resale-ability of the truck on the used-truck market.

      • 0 avatar
        DeadWeight

        It also had to due with “work ethics,” at least to some degree in non-blinged out trucks.

        Contractors who drive a pickup because they’re in the trades/construction/etc aren’t projecting an old-money, trust fund baby image by driving a pickup (as they would if they were driving a newish Bentley Continental or Ferrari F430, or even Land Rover), even if the pickup truck cost 80% of what the Land Rover does.

        Also, these pickup truck contractors, during busy years, rack up major miles. I’ve seen some of these peeps put 40,000 and even 50,000 miles on their trucks in a single year when busy.

        • 0 avatar
          raph

          I knew a guy that put over 100k on a truck in a,year. Guy was a waterman ( I’ll just take,him at his word ) and owned boats in Virginia and Florida and traveled extensively.

          • 0 avatar
            highdesertcat

            “I knew a guy that put over 100k on a truck in a,year.”

            It can be done. A guy, related through marriage to my brother who used to live in LA, owns a “24-hour delivery” service in City of Industry, CA, and his trucks, vans and little sedans rack up the miles real fast.

            But that includes private shuttling services to/from the various airports, in addition to package and parcel delivery at all hours of the day, like delivering prescriptions and ER supplies.

            A 100K miles per year is easily done. Several people in my area put on well over 50K miles a year, just commuting to/from work in El Paso, WSMR or Las Cruces, at >200mi roundtrip per day for El Paso.

            For them, Cruise Control is essential.

        • 0 avatar
          bball40dtw

          We had Silverados on a 3 year, 90K mile lease at one point. Lots of miles. GM really wanted to lease six model end refrigerator white long bed trucks as well.

    • 0 avatar
      ajla

      I don’t think I’d ever get a truck.

      I’m not a racer or anything but I like more edge than what pretty much every pickup provides (I guess an old Lightning might work). Plus I have zero need for their utility, so I’d be one of those guys with a pristine bed and unused hitch.

      • 0 avatar
        highdesertcat

        In 1966, I started out with a used 1962 IHC 4-door Flightline truck retired by the US Air Force and at least one half-ton pickup truck has been a part of my household ever since.

        In my case, once I got one, I was hooked and never cared to live without at least one.

      • 0 avatar
        raph

        I’m not a fan myself beyond the utility of a truck. Definitely a vehicle I would buy well used since I know I would scratch it up.

    • 0 avatar
      SSJeep

      Agreed Kyree, I think many lux buyers (including myself) feel the same. Id rather get into a higher trim F150 than an equivalently priced 5 series. The reasons are simple. 99% of my drive is in traffic so high speed cornering is not an issue. Having a very comfortable cockpit and great visibility are major wants. In EB 2.7 form, the F150 will get the same mileage as said 5-series. The F150 will hold its value much better, and wont be in the shop with expensive euro-car problems several times per year. Clients and coworkers also have a perception regarding euro imports – right or wrong, that isnt an issue with an F150.

      It doesn’t surprise me that the #1 vehicle overall amongst the 1% is the F150.

    • 0 avatar
      stuki

      Grrrrrrrrr!!!

      This being the home of the B&B, why the heck did Ford kill of the BOF Panthers??? Just build them on the obviously luxurious riding enough half ton frame, ditch the pointless bed for a two Italian trunk, and rake it in…..

  • avatar
    VoGo

    Well, the B&B should take a victory lap for being right: the aluminum F-150 was the stupidest idea in history.

  • avatar
    shedkept

    B&B?

  • avatar
    "scarey"

    I know that I said that my next truck would be a Nissan, but when I started looking, I was seduced by an F-150. And it has turned out to be the best truck I have ever owned. BTW, it is NOT all blinged-up. Just comfortably equipped.

    • 0 avatar
      Drzhivago138

      What trim level is it, if you don’t mind? I used to consider Lariat/LTZ/Laramie to be luxury, but now they’re the high end of normal.

      • 0 avatar
        "scarey"

        Probably the lowest trim level.Just an F-150 4×4. It has, however, some great power (cloth) seats.

        • 0 avatar
          Drzhivago138

          Sounds more like an XLT. XL (the lowest trim level) is not what most people would consider “comfortably equipped,” though it does come with optional cloth seats. XLT, unless I’m mistaken, is the lowest trim level with power seats. 4×4 is not really an indicator of what trim level the vehicle is, although it does tell us that you don’t have the FX4 package.

    • 0 avatar
      Big Al From 'Murica

      I did the same. Was going to upgrade my Frontier S to a nicer trim Frontier but the F150 Crew Cab in XLT trim had all of the options I wanted and then some, better MPG than the Frontier and ended up like 2 grand more after cash on the hood was accounted for. I did get the chrome package though…when I was growing up the Chrome was what made it an XLT in the first place and I liked the grill better.

  • avatar
    thelaine

    No matter what you are looking for in a pickup, Ford wants to be there. That is why I think they will eventually bring back the Ranger.

    • 0 avatar
      highdesertcat

      I agree. If I needed a 3/4-ton or higher, I would buy a Ford. Ford is unequivocally the best when it comes to trucks. And in some models Ford offers that girthy V10.

      I wish I had kept my 1999 F250 V10, even if only for a novelty Sunday driver.

      • 0 avatar
        Drzhivago138

        V10 is chassis-cab only.

      • 0 avatar
        SSJeep

        The V10 was a great engine until it began puking up spark plugs and ignition coils due to improper plug thread depth on pre-2002 models. Its probably a good thing you relieved yourself of it.

        That said, the V10 could do just about everything the diesel F250 could, and at an overall lower cost of ownership. It had its virtues. The Excursion V10 was an amazing SUV back in the day…

        • 0 avatar
          highdesertcat

          The guy that bought it from me offered $2K more than I had paid for it, and I was short of money at the time.

          Like I said, an offer I could not refuse.

        • 0 avatar
          shedkept

          My V10 Excursion “excursion”from about 11 years ago: 11 mpg at 70, 11 mpg at 60, 11 mpg at 45. About 11 mpg over-all for a week I rented one. “About” because it did worse around town. 44 gallon tank was a wallet buster. It was big and comfy, though!

    • 0 avatar
      Kyree S. Williams

      They may, but it probably won’t be the same compact pickup it was. It’ll be more mid-sized, like the Tacoma, Colorado, Canyon and Frontier.

  • avatar
    DenverMike

    Some dude just kicked his dingo.

  • avatar
    Master Baiter

    Empty pickups ride like buckboards, have a huge turning radius and are difficult to park; I wouldn’t want one for a daily driver.
    .
    .

    • 0 avatar
      Drzhivago138

      1. When it comes to modern pickups, only 3/4 tons or higher have a bad ride unloaded.

      2. Yes to the huge turning radius, although the landyachts of yesteryear weren’t any better.

      3. Subjective.

    • 0 avatar
      laserwizard

      Usually doing what your name says makes you go blind. Where did the stupid part come from? ROFL

      • 0 avatar
        FreezingD

        I sure like driving my dad’s very-nicely-equipped F-150, especially when I need to make a home depot run for lumber or mulch. But to think of using it as a DD? No. Just. No. It drives like a tank.

        • 0 avatar
          Carlson Fan

          “But to think of using it as a DD? No. Just. No. It drives like a tank.”

          The reality is most people love FS PU’s as daily drivers. The way they drive is one of the reasons they are so popular. Luxurious, roomy, smooth, quiet and powerful. With cheap gas what’s not to like?

          • 0 avatar
            sgeffe

            It ain’t cheap any more! Prices are more volatile in Ohio and the Midwest because of the GREEDway..OOPS..SPEEDWAY/Ashland Petroleum near-monopoly on the market. NW Ohio just hit $2.399/gallon for 87-octane this week, and there’s nothing stopping it.

            I predict $4.00/gallon by summer’s end. That’s Ohio, much less the coastal areas. (Especially since they’re predicting a nasty hurricane season this year.)

        • 0 avatar
          DenverMike

          Which tires? Mine are 70 series x 265, at 35 psi. The F-150 rides like damn Bentley with air ride.

  • avatar
    Davekaybsc

    Apparently I’m one of the few who would take a 5 series over an F150, though the current F10 5 series has never been my favorite, and the current A6 has a bit too much obvious cost cutting for my taste. The 2017 E though? Yeah I’ll take that over a giant rolling box in a heartbeat. I also think some of you are overestimating how much potential clients may want to clamber in and out of the back of your crew cab, especially in a suit.

    If you want something nicer than an Avalon or LaCrosse, but don’t want to be seen overtly flashing your badge around, well that’s what the Hyundai Genesis and Volvo S90 are for. Nobody knows what the Genesis is, and Volvo says “nice car” without saying “d-bag.” If Kia is able to make a competent K900 in the next generation, that would work as well.

    • 0 avatar
      laserwizard

      We are pleased to hear that you’ll take a five series over an F-150. We also realize that means you won’t be hitting on a neighbor to borrow his F-150 to pick up a big screen. You’ll stay with your 12 inch one.

      • 0 avatar
        ajla

        If I was buying something that didn’t fit in my trunk, I could almost certainly arrange to have it delivered.

        If I couldn’t have it delivered for some reason, my friends and family with trucks/vans/SUVs would have zero issue helping me out because I’m not an insufferable lunatic.

    • 0 avatar
      Drzhivago138

      “I also think some of you are overestimating how much potential clients may want to clamber in and out of the back of your crew cab, especially in a suit.”

      Those are the words of someone who doesn’t know 1. how big the rear seats and doors are in a SuperCrew, and 2. How nice an F-150 interior can be.

  • avatar
    laserwizard

    Mommy, why is there no Mercury brand?

    Bobby, because Ford became Mercury and moved upscale and there is no need for a dime store Ford brand anymore.

    Mommy, why does Chevrolet exist then?

    Bobby, that’s what Government bailouts do, honey. The worthless are retained since there is no incentive to truly improve.

    Mommy, why does Buick exist?

    Bobby, the bailout was financed by the Chinese and their jobs are more important than ours. The Chinese like Buicks like they like their doggies for dinner. You can’t figure out why, but they just loves ’em.

  • avatar
    True_Blue

    Taking my F10-owning supervisor out to lunch in my ’15 XLT FX4, he remarked on the ride quality on frost-heaved CNY roads. They’re light-years ahead of the ’06 FX4 we had in terms of maneuverability, too.

  • avatar
    Superdessucke

    They may be building more in Mexico but the profits come right back here to the one percenters in the good ‘ol USA. ‘ Murica!!

  • avatar

    When Ford starts making record profits from trucks and SUVs I get concerned. Are they going to buy AM, Jaguar and LR back, stop development of new Ford and Lincoln cars and dump cars into rental fleets?

  • avatar
    DeadWeight

    *What’s odd (or not) is that there are breaking newswire report that Ford is idling F150 production for one week as of tomorrow due to “excessive inventory” (over 286,000 F150s on dealer lots at last count).

    Maybe Q1 really was as good as it gets with a slowdown coming?

    • 0 avatar
      DenverMike

      That’s way more than half of the total F-150s Ford sells in 4 quarters, sitting on dealer lots right now?? They’d better shut down for more than a week.

      Fleet sales of F-150s are around 40%, and they don’t count as “inventory”, so if this is just “retail” F-150s, they’d better shut down for the year!

      Something sounds a little *off*.

      • 0 avatar
        DeadWeight

        Headline says “due to mechanical issues,” but did they bury a critical (and amazing) inventory level issue?

        http://www.autonews.com/article/20160428/OEM01/160429817/ford-will-shut-one-f-150-line-for-a-week

        Ford will shut one F-150 line for a week

        “Ford had 288,000 F-series pickups in inventory as of April 1, the most since July 2006, according to the Automotive News Data Center. That was equal to a 105-day supply, versus 90 for Ram pickups and 82 for the Chevrolet Silverado.”

        • 0 avatar
          DeadWeight

          AND yes, Mark S, Steph Willems, whomever – you may take my lewd on this potentially significant inventory story re the F Series inventories and splash the headline on TTAC even though I beat you the punch in reporting it and dissecting the real significance of it (this happens often, I suspect).

        • 0 avatar
          DenverMike

          OK, you said “286,000 F-150s”. Now you’re saying “F-series”. You know there’s a difference right? They’re kinda made on a different line, no?

          • 0 avatar
            DeadWeight

            I wrote F150s (it’s automatic when I think of Ford p/u’s) but the article quote states F Series (and then goes on to compare that to much lower inventories of rival pickup trucks).

          • 0 avatar
            DeadWeight

            Here’s how the wire services reported it (citing Bloomberg):

            “28 23:04: Ford idling F-150 factory for one week, Bloomberg says”

          • 0 avatar
            DenverMike

            The “mechanical issue” is the reason for the one week shutdown and the overly strong inventory means “supply” won’t be an issue in the least.

            They didn’t specify if it was mechanical issue with the assembly line or F-150s, but that would be a “quality issue” and also affect the other F-150 line.

    • 0 avatar
      bball40dtw

      The week shutdown has nothing to do with Ford being worried about truck sales. They finally have large enough inventories to make this move. DTP will still be cranking out three shifts of F150s. They need to do this now, because KCAP F150 production is lagging behind where it should be.

  • avatar
    Chocolatedeath

    Ford should stop making these. THey are not thinking about the 35k plus folks who will die due to these being on the roads.

Read all comments

Back to TopLeave a Reply

You must be logged in to post a comment.

Recent Comments

  • sgeffe: As would CrabSpirits!
  • 28-Cars-Later: A dealer in Sharpsburg had one weeks ago, about half those miles and I think they had $11,995 on it. I...
  • make_light: I root for Kia/Hyundai and will strongly consider one for my next purchase, but this is unjustifiably...
  • dal20402: Yeah, I was talking about a full EV with a big battery. On a Prius or other small-battery hybrid it’s...
  • dal20402: The W140’s ultra-serious nature and the coupe body style don’t really go, for me. I’d...

New Car Research

Get a Free Dealer Quote

Who We Are

  • Adam Tonge
  • Bozi Tatarevic
  • Corey Lewis
  • Mark Baruth
  • Ronnie Schreiber