Ford Slims Down to Pick Up

[Bob Of Burleson]

By Justin Lahart
The Wall Street Journal

Ford Motor Co. says its aluminum-body F-150 pickup trucks will be able to pull as much as 8,400 pounds. The big question is how well the auto maker will be able to pull off the F-150 launch.

Ford on Thursday delivered solid second-quarter results, as strength in North America and Asia and a return to profitability in Europe more than offset continued woes in Latin America. Ford stock was little changed, while shares of crosstown rival General Motors, which reported a sharp drop in second-quarter earnings on recall costs, fell sharply.

But for Ford investors, the past quarter doesn't matter as much as the 2015 F-150, scheduled to arrive at dealerships toward the end of this year. The move to the mostly lightweight aluminum truck body is a gamble: Ford's F-series full-size pickups accounted for about 30% of Ford's U.S. sales last year, and with its higher margins, an even more substantial portion of profits.

But the payoff could be big. Ford won't release fuel-economy figures until closer to the launch. Still, at more than 700 pounds less than this year's model, the F-150 will offer substantial fuel savings. And that could translate into substantial market-share gains.

Many pickup owners use their truck on the job. So while they tend to be loyal, being able to squeeze more mileage out of the tank is appealing. A recent UBS survey showed that among respondents looking to buy a new pickup over the next year, 27% of Chevrolet and 19% of Dodge Ram owners said they were "extremely likely" to consider the new F-150. Gas mileage was cited as the chief reason.

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[Bob Of Burleson]

Sales of Big S.U.V.s Pulling
the Weight at General Motors

By AARON M. KESSLER
The New York Times

When the redesigned 2015 Chevrolet Suburban started coming off the assembly line this year, Mike Quinto made sure he was one of the first to buy one, ordering it, sight unseen, two months ahead of time.

Mr. Quinto, a technology consultant from Blowing Rock, N.C., is well aware that the fuel economy of his four-wheel-drive Suburban, a large sport utility vehicle, is low, officially rated at a combined 18 miles a gallon. But it is a trade-off he is willing to make for something that can handle his work travel and weekends in the mountains with his children.

“I didn’t buy the vehicle for the gas mileage,” he said. “I bought it for everything it can do for me and my family.”

Tens of thousands of buyers have similarly flocked to buy G.M.’s largest S.U.V.s — and buoyed the company’s bottom line just when it needs it most. Mired in a recall scandal over defective ignitions that has now, along with other safety-related charges, cost the automaker $3.8 billion, G.M. has been hammered on its income statement. On Thursday, the company said its earnings in the second quarter dropped 85 percent from a year ago.

But G.M. would be in worse shape financially without the surging sales of its large sport utility vehicles, which many once wrote off as artifacts of prerecession excess.

. . .

To keep up with demand, the Arlington, Tex., plant that makes the Suburban is running 24 hours a day, in three shifts, along with extra work on weekends, said Mark Clawson, G.M.’s Tahoe and Suburban marketing manager. He said there was something about the biggest sport utilities that creates loyal customers.

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[Fitzroy]

The new F150 is great - if you're a giraffe.

All of the full-size trucks have made the beds so tall that I can barely see what's in them. I couldn't imagine trying to use one of them to actually load stuff up and move it around.

[Bob Of Burleson]

The new F150 is great - if you're a giraffe.

All of the full-size trucks have made the beds so tall that I can barely see what's in them. I couldn't imagine trying to use one of them to actually load stuff up and move it around.

Good point. Since I drive a small pickup, I'd never thought about that inconvenience. Maybe running boards extending along the sides of the bed?