Ford must be doing something right. Bronco Essentially Sold Out for Years

[MadMan4BamaNATL]

Please allow me to address the above quote plus a few others that you have made on different threads here about this same topic, because they all touch on the same point… your doubt that Ford can scale effectively to compete profitably in the electric vehicle marketplace.

Here are two other quotes…




I think you know by now that Tesla barely makes any money on its automotive sales. It has been well documented in the financial press that Tesla’s profits to date have largely come from the sale of regulatory tax credits, and recently from a sale of part of its Bitcoin holdings in treasury.

Nevertheless, you may want to educate yourself a little more about Ford’s specific EV strategy. The Deutsche Bank interview transcript that I posted earlier in this thread mentions the word “scale” more than 5 times, so you might find it interesting.

As the #21 company on the Fortune 500 list, Ford knows very well how to scale production, and it has made important strategic decisions about how best to do that profitably in the BEV marketplace. There is a very good reason why Ford is introducing BEVs in its Mustang brand, its F-150 brand, and its Transit brand, and it has to do with economies of scale and profitability. The best way to leverage economies of scale and profitability is to start with the largest and most profitable platforms as the base upon which to build.

To quote from the Deutsche Bank transcript…

Farley: “Look, 50% of these vehicles content is non-battery electric components. So scale will really matter. That's why we started with the number one van, the number one sports car, the number one pickup. Not only are we good at those vehicles, but we have huge scale when it comes to the 50% of the BOM that has nothing to do with being a BEV.”

[snip]

“All I know is we have the number one pickup truck globally that's going electric [F-150]. We have the number one van globally that's going electric [Transit] and in North America globally for both, and we have the number one sports car in the world going global and going BEV in the next six months [Mustang]. And so far, Mustang Mach-E is the only one out. And it’s completely sold out.”

To be frank, there is a reason why Tesla’s stock price has fallen in 2021 while Ford’s has risen dramatically, and it has a lot to do with: (a) Ford’s EV strategy, and (b) Tesla’s falling market share, which is now going directly to Ford and other competitors.

Don’t believe me? Check out the article below from Business Insider…

Tesla's global market share fell to its lowest level in over 2 years as electric car competition heats up

Grace Kay, Business Insider, June 3, 2021

• Tesla's market share of the global electric-car market fell to 11% in April.
• The electric-car company's lead in the US is also narrowing, as Ford and GM build their own EVs.
• Tesla's stock fell to its lowest level in three weeks following the news.

The first and last paragraphs of that article say, and I quote:

“Tesla's grip on the electric-car market is slipping.”

[snip]

“Tesla's loss has been Ford's gain. Ford shares have rallied almost 69% this year.”

Below is an actual chart comparing the two stocks for the year to date...

Bottom line: Farley is gunning for Musk — he wants very badly to take Musk down on his own battlefield — and Wall Street appears to be realigning accordingly.

Fellow Bronco lovers: If you care anything about investments, there is money to be made here, so invest wisely.

Jeez Razorbak86, the voracity of your posts have just reached a level of quality to where I'm just at a damn loss for words....

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[indio22]

why would you be here if you are not interested? weird. or am I missing something ?

Yes you are missing something. Wanting to evaluate a vehicle in-person including test driving to make an informed decision, does not equal not interested. Actually it's kind of the opposite. It means the person is very interested in the particular functionality and performance of the vehicle for that person's usage.

 

[Richtor]

Yet dealers will get Broncos to sell before those that have been waiting 12-24 months! uhgg!

 

[Dr.Detroit]

Yes you are missing something. Wanting to evaluate a vehicle in-person including test driving to make an informed decision, does not equal not interested. Actually it's kind of the opposite. It means the person is very interested in the particular functionality and performance of the vehicle for that person's usage.

what? I missed that, I was busy typing my VIn # into the tracker...2 weeks away from enjoying the most anticipated product in recent history. Leave a message. Thanks.

 

[indio22]

I hear you. Problem for me is that I don't care to test drive a Bronco on road. the Off Rodeo would be more of what I need, but that's a loaded trial in carefully manicured courses.

I told someone earlier in another thread a few weeks back that I can't remember the last time I test drove a car before ordering it. In a dealership I talk business first (money).

All of these were Bimmers which I trust the drive, but there are always some surprises with new technology which I generally haven't liked much.

For what the Bronco is, a true test for me won't happen until I've taken it deep in the woods and see how it feels and handles the first time I screw up and get it somewhere I shouldn't.

Can't wait!

I get what you are saying about the off-road part. A Ford dealership likely won't be too keen about a potential buyer bashing a Bronco off-road during a test drive. Personally I'll be looking for some reputable reviews getting thrashed about off-road.

But think about all the handwringing in threads on this site, speculating if the 6cyl or 4cyl is better for the given driver, or if the manual trans will be the ticket over the automatic, or if the 2-door is workable enough for some folks compared to the larger 4-door, or hardtop vs soft top, etc.

There is a way to bring clarity to a lot of that - personally see and test drive the vehicles. Test drive both the 4cyl and 6cyl and put an end to the speculation of what's good for that particular driver. Test drive a manual trans and know if it's a blast driving or a chore in the particular vehicle. Especially dropping 30k plus on an item - test drive and evaluate exactly what you are getting.

 

[indio22]

what? I missed that, I was busy typing my VIn # into the tracker...2 weeks away from enjoying the most anticipated product in recent history. Leave a message. Thanks.

Anticipated vs reality. At least please take it off-road.

 

[Ride Em Bronco]

Careful what you wish for, or this wonderful human being might grant you your wish…

 

[Dr.Detroit]

Anticipated vs reality. At least please take it off-road.

well, I want to but my experience is zero, that's why I would enjoy Off Roadeo..does the back have the double grocery bag rack?...so nice..and the shocks will easily hold 10-20 bags or so..I won't be scared of those parking lot puddles either....thank the good lord for making a product that makes sense. Maybe a sliding door on the side for easy access......

 

[Ukon]

Who knows. Ford's all about reservations these days, that's their sales/marketing thing. I'm not buying any car I haven't fully evaluated including test driven. So I'm not Ford's target customer. Two years doesn't work for me. Will see how it all plays out I guess.

Test drive?
I’d be happy just to SEE one before I make a $50,000 commitment!

 

[indio22]

Test drive?
I’d be happy just to SEE one before I make a $50,000 commitment!

I saw two 4-door soft tops at a Ford event. There's a lot to like. Kudos to Ford for offering a vehicle in this class. But yeah, I have to see a 2-door in person, and evaluate the engine/trans options etc. Even the colors, I've only seen a few in person mostly on other vehicles.

 

[Rick Astley]

This article from Motortrend says it all: https://www.motortrend.com/news/for...VN3_H2RML3a7d4erzy7VRMD4PGYmsNqTJuZ7iijCFB6Oc

Ford Bronco Sold Out for Years, Orders Pour in for F-150 Lightning and Maverick
All these reservations for Ford's hottest new products will take a while to fill.

Jun 18, 2021

Ford is having a good inning. It is hitting it out of the park with interest in four new vehicles: The 2021 Ford Bronco SUV, which is finally in production; the electric 2022 Ford F-150 Lightning fullsize pickup truck; the smaller 2022 Ford Maverick hybrid pickup truck; and the electric 2022 Ford E-Transit commercial van.

Reservations are strong, Ford CEO Jim Farley said during the Deutsche Bank Global Auto Industry Conference. Filling them all will take some time. A shortage of semiconductor chips means inventory is not expected to return to normal levels until 2022.

Ford Bronco Has Two Years Of Sales Orders
So far 190,000 customers have reserved a Bronco, the rugged SUV that has seen its launch delayed a number of times, and which has had to sort out an issue with the supplier of its hardtops. But production is underway to fill the 125,000 reservations that have been converted to orders, Farley says. The SUV is essentially sold out for two years.

Ford Pro Should Lure More Commercial Customers
Farley told investors that the automaker is concentrating on commercial customers. The company created Ford Pro, a global vehicle services and distribution business designed to increase uptime and reduce total cost of ownership for commercial customers, offering them more services.

Ford will offer Pro versions of vehicles, including the 2022 Ford F-150 Lightning Pro work truck. Contributing to the Lightning's low starting price is scale, sharing parts such as motors with the E-Transit, and developing new battery cells, to be built as part of a joint venture, that drop the cost from $100 per kWh to $80/kWh sometime after 2025.
Ford will also make money on services for commercial vehicles and plans to dramatically increase its supply of parts to service vehicles. But the biggest opportunity, Farley says, is increased commercial vehicle sales, where Ford already has 43 percent share in the U.S. The CEO said he thinks more customers will go from mixed fleets to Ford fleets. The automaker is also working on a commercialized autonomous vehicle business.


Ford Buying Electriphi
To further help commercial customers, Ford said it will acquire Electriphi, a California-based provider of charging and fleet monitoring software to help commercial customers ensure productivity by offering depot charging for EV fleets and help fleet managers monitor their vehicles. Depot charging adds to other options including charging at home or at public stations, the locations of which will be mapped in the vehicle's telematics system. Customers must sign up for Electriphi's charge management services.
The Ford+ plan under Farley is designed to guide the automaker's transition to electric vehicles that are better connected to their owners. Ford is spending $30 billion by 2025 on electrification efforts. Farley says Ford spending will be on par with anyone and will only go up.

Ford's Rosier Financial Picture
Because demand is so strong, Farley says second-quarter earnings will be better than originally forecast and stronger than a year ago. The financial picture has gotten rosier in recent months as costs have been lower and prices higher, which has helped the bottom line.

General Motors has also painted a rosier picture for the quarter, saying profits could be $4 billion higher than forecast, and GM will further increase its investment in EV and autonomous vehicle technologies to $35 billion through 2025 and add two more battery plants in the U.S. in addition to the two already under construction.
GM has said it plans to offer 30 new EVs globally by 2025, including the 2022 GMC Hummer EV full-size pickup truck and the 2023 Cadillac Lyriq mid-size crossover.

They seem to be bringing products to market that people want, that's great!


Ford has had some "bad decades" with moribund products and a dearth of quality in their manufacturing.

Bronco is looking to be a great rig and i'm very excited they paired the excellent 2.3 from Ranger with a Manual. Plus removable doors, top, and a 2-door. It's a massive risk in todays automotive landscape which seems to have gone largely unnoticed on the forums.

 

[Rick Astley]

Test drive?
I’d be happy just to SEE one before I make a $50,000 commitment!

Just pick a cheaper build and you won't have to deal with having a $50K rig at all

 

[BroncoBilly17]

I imagine once reality starts to set in and the unknowns start to become knowns...the reservation numbers are going to decrease.

I take the opposite view. Once people actually see the thing in real life, hear how much fun and enjoyable the vehicle is, I think the numbers will go up

 

[Virtual-Chris]

Please allow me to address the above quote plus a few others that you have made on different threads here about this same topic, because they all touch on the same point… your doubt that Ford can scale effectively to compete profitably in the electric vehicle marketplace.

Here are two other quotes…




I think you know by now that Tesla barely makes any money on its automotive sales. It has been well documented in the financial press that Tesla’s profits to date have largely come from the sale of regulatory tax credits, and recently from a sale of part of its Bitcoin holdings in treasury.

Nevertheless, you may want to educate yourself a little more about Ford’s specific EV strategy. The Deutsche Bank interview transcript that I posted earlier in this thread mentions the word “scale” more than 5 times, so you might find it interesting.

As the #21 company on the Fortune 500 list, Ford knows very well how to scale production, and it has made important strategic decisions about how best to do that profitably in the BEV marketplace. There is a very good reason why Ford is introducing BEVs in its Mustang brand, its F-150 brand, and its Transit brand, and it has to do with economies of scale and profitability. The best way to leverage economies of scale and profitability is to start with the largest and most profitable platforms as the base upon which to build.

To quote from the Deutsche Bank transcript…

Farley: “Look, 50% of these vehicles content is non-battery electric components. So scale will really matter. That's why we started with the number one van, the number one sports car, the number one pickup. Not only are we good at those vehicles, but we have huge scale when it comes to the 50% of the BOM that has nothing to do with being a BEV.”

[snip]

“All I know is we have the number one pickup truck globally that's going electric [F-150]. We have the number one van globally that's going electric [Transit] and in North America globally for both, and we have the number one sports car in the world going global and going BEV in the next six months [Mustang]. And so far, Mustang Mach-E is the only one out. And it’s completely sold out.”

To be frank, there is a reason why Tesla’s stock price has fallen in 2021 while Ford’s has risen dramatically, and it has a lot to do with: (a) Ford’s EV strategy, and (b) Tesla’s falling market share, which is now going directly to Ford and other competitors.

Don’t believe me? Check out the article below from Business Insider…

Tesla's global market share fell to its lowest level in over 2 years as electric car competition heats up

Grace Kay, Business Insider, June 3, 2021

• Tesla's market share of the global electric-car market fell to 11% in April.
• The electric-car company's lead in the US is also narrowing, as Ford and GM build their own EVs.
• Tesla's stock fell to its lowest level in three weeks following the news.

The first and last paragraphs of that article say, and I quote:

“Tesla's grip on the electric-car market is slipping.”

[snip]

“Tesla's loss has been Ford's gain. Ford shares have rallied almost 69% this year.”

Below is an actual chart comparing the two stocks for the year to date...

Bottom line: Farley is gunning for Musk — he wants very badly to take Musk down on his own battlefield — and Wall Street appears to be realigning accordingly.

Fellow Bronco lovers: If you care anything about investments, there is money to be made here, so invest wisely.

Tesla is definitely way overvalued. But they do have an innovative business model and bleeding edge tech.

Ford is announcing exciting products but is, so far, not delivering, never-mind at scale. They are good at taking orders - no doubt about that. Fulfillment is another matter.

The whole MIC roof issue is a good example of how Ford doesn’t really have control over their supply chain, at least where new and innovative parts or tech are concerned. If a hiccup with a ultra-low tech plastic roof can cause a major issue with production, how can we expect them to smoothly scale with electric power trains and bleeding edge battery tech. My impression is Ford has a lot of promise and ambition, but it’s shackled by a century of old-school business practices, unionized labour, and suppliers who are clearly not able to move or scale at the required speed.

 

[Razorbak86]

Ford is announcing exciting products but is, so far, not delivering, never-mind at scale. They are good at taking orders, but (again) so far, not delivering.

[snip]

The whole MIC roof issue is a good example of how Ford doesn’t really have control over their supply chain, at least where new and innovative parts or tech are concerned. If one small hiccup with a plastic roof can cause a major issue with production, how can we expect them to smoothly scale with electric power trains and bleeding edge battery tech. My impression is Ford has a lot of promise and ambition, but it’s shackled by a century of old-school business practices, unionized labour, and suppliers who are clearly not able to move or scale at the required speed.

Welcome to post-COVID supply chain management in 2021...

Chevy: GM Cancels Remaining 2021 Corvette Orders for June Allocation

Toyota: Adjustments to Domestic Production in June 2021 due to Parts Shortage (as of May 18)

GM: GM build-shy strategy has tens of thousands of vehicles parked awaiting chip parts

Tesla: The start date for Tesla’s Berlin plant has been delayed—again [until early 2022]

Volkswagen: 2021 VW Tiguan Launch Has Been Postponed To June 2021!

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