Will the F-150 Redesign Make or Break Ford?
Posted January 17, 2014 & filed under Hiring Resources
When is major change to an established brand too much? The Ford Motor Company is testing that very question. To kick off the North American International Auto Show, the iconic automaker announced the redesign of one of their top-selling vehicles: the Ford F-150. Swapping its stainless steel body for an aluminum one, Ford (and the auto industry by proxy) will learn firsthand how close they can get to the gully’s edge of innovation without plummeting over.
Cutting down on the bulk
The rationale is simple enough. Ford is transitioning to an aluminum body (the frame itself remains stainless steel) to help shed 700 lbs off of their dense yet durable pick up. That allows for a greater fuel economy, bringing the Ford F-150 redesign up from 23 highway miles per gallon to a thriftier 30 highway miles per gallon. On top of that, aluminum allows for greater corrosion resistance in the body of the vehicle. Those types of changes have been big on consumer wish lists for pickup class vehicles and if Ford was going to experiment with any of its fleet, the F-150 is the safest bet.
Now on the 13th generation, the Ford F-150 sold 763,402 trucks last year and has remained the best-selling vehicle in America for 32 consecutive years. It’s a perennial success with established buyers who buy the vehicle year in and year out. As long as the F-150 redesign continues to be durable enough to withstand a barrage of tough terrain and heavy loads, loyal buyers should continue to show their support with their dollar bills. But will they?
Potential for pitfalls
Ford seems to be fully aware of the trepidation American consumers may have with the shift to an aluminum body. In the Auto Show announcement, Ford executives called more attention to a new, stronger steel frame – that surpasses the strength and durability of the competition – over the aluminum body. Eventually, they did tout the fact that the aluminum used in the F-150 redesign was of the same grade used in airplanes but their strategies suggest they know they’re facing an uphill battle.
Another potential problem stems from the expense of the change. Aluminum is a costly alternative to stainless steel and will require an alternative supply chain than the previous models. One thing that offsets the cost of aluminum is the fact that it is one of the most prevalent metals and the third most common element on the planet. And the supply chain problem may be fixed soon enough.
Alcoa Inc., the world’s third largest producers of aluminum, announced that they have finalized a $300 million expansion in Davenport, IA to meet the demand for lightweight aluminum automotive bodies. By mid-2015, the aluminum producer will also have completed capacity upgrades in their Alcoa, TN facility to meet the demand from Ford and anyone following in the automaker’s deep treads.
Fortuitous prospects
Thus far, it seems as if Ford has enough of the right conditions in place for the change to end in positive results. Greater fuel economy, raw material availability, and a quickly evolving supply chain is keeping the incline before them from being too steep. If this transition works, we can expect to see similar replacements in the Super Duty pickup (F-250 & F-350) and S.U.V. (Ford Expedition & Lincoln Navigator) lines. Ultimately, it’s up to consumer interest as to whether this major change ends up flooding the engine of Ford Motors or giving it the traction needed to climb above the competition.
What does that mean for manufacturers? For those in the automotive industry, it means there will be a larger supply chain in place to rapidly process the aluminum for large scale automotive bodies. For all others, it’s a sign that sometimes a risk of this magnitude won’t capsize your ship. Ford seems to have carefully weighed the high cost of aluminum in the F-150 redesign versus the fuel economy that a lightweight body can afford them. It’s not a guaranteed win but sometimes these tough decisions can bring in an impressive financial haul.
by James Walsh
