New F150 Weights Negative on Profit

Ford Profit Falls in Third Quarter on Truck Costs

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Ford's new aluminum-sided F-150 will be a lot lighter and more efficient when it goes on sale later this year. But for now it's a serious drag on profits.

Net income dropped 34 percent to $835 million in the third quarter, largely due to the cost of launching the pickup. The new F-150, which is 700 pounds lighter due to its aluminum construction, is scheduled to go on sale by the end of this year.

Ford has repeatedly warned investors that this year would be difficult financially. It's launching a record 23 vehicles worldwide, including the F-150 and the new Mustang sports car that went on sale during the third quarter. It's also building five plants in Asia and launching the luxury Lincoln brand in China.

Yet, investors keep showing signs of nervousness over the pickup truck gamble. After hitting a high of $17.84 in July, Ford's shares have steadily declined. After the earnings report, the shares were down 4.3 percent to $13.77 in midday trading.

The F-Series has been the best-selling vehicle in the U.S. for 30 years; changing its body from steel to aluminum could be a game-changer for the industry, but it could also hurt Ford's reputation — and profits — if the new material causes quality problems or doesn't meet buyers' expectations. Morgan Stanley analyst Adam Jonas estimates the F-Series accounts for 90 percent of Ford's global automotive profits.

Chief Financial Officer Bob Shanks acknowledged that in the short term, Ford won't be making the kinds of margins it usually sees on its pickups. The Dearborn and Kansas City plants won't be fully operational until the second quarter of 2015, he said, and margins historically improve over the life of the truck.

http://abcnews.go.com/Business/wireStory/ford-profit-falls-quarter-truck-costs-26420693

The media is making the switchover out to be far a bigger deal than any consumer is.

Average Joe truck buyer really doesn't care. They want power, comfort and reliability and isn't concerned about what the door sheet metal is made of.

We will see but I think it will make a few son sumer question it. Aluminum just isn't as sect as steel. Now most F150 drivers could get by with fiberglass trucks. All they are used for it commuting but the idea will make some people question it. But if it works well as I expect it will then it will be easier to get people to buy into it in the Super Duties. That where it's toughness will be in great questionand even bigger profit margins are at stake.