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Ford (NYSE:F) to shake the auto industry

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Loads of work is done when it comes to taking risk and a plunge of faith in developing new and inventive ideas for creating apps and widgets. Taking a unique leap of faith is another of America’s great corporations but it is an entirely different field: automobiles. Many people have gone out to say this will be a turning point for autos all over. The company that can afford to take such a risk, because their name represents trust, is none other than, Ford (NYSE:F). This company is venturing into the task of converting its greatly famous F-150 pickup truck and making this popular vehicle in aluminum.

 

This car F-150 can easily set records for its best sales. In United States for the last 30 years, this pickup truck has become a house hold name. Companies like Big Three and Chrysler have tried to introduce fuel efficient pickup trucks in the market, but they have been only able to capture a small portion of the market. They don’t even come close to F-150 that reports for more than 4% of all vehicle sales.

 

According to Peter Friedman – the head of the manufacturing research division at Ford (NYSE:F) – in order to make these pickups more technologically sound, they have to work on making them lighter and smoother, the only steel that works in this department is aluminum. For many years Ford (NYSE:F) has worked with both aluminum that is 2/3rd denser than steel. But Ford (NYSE:F) has been trying hard to increase the usage of aluminum, which wasn’t possible till 2010. Many changes have been made till then and Ford (NYSE:F) will bear its fruit in the year 2015 by introducing its brand new F-150. In this brand new aluminum created pickup technology, almost 700 pounds have been shed and it is this much lighter than its previous predecessors.

The introductions of these light weight pickup trucks have benefits that need are attached with:

  1. Light weight is equivalent to higher fuel competence; there will be an increased gas usage.
  2. These are tough trucks; they are working vehicles which are more sturdy and sustainable than majority of other cars.
  3. Financially these cars are targeting the middle class market – with the basic price of $25,420 the new F-150 is only $395 expensive than its older versions.

 

Aluminum is going to be the major raw material used in many of Ford (NYSE:F) factories. Ford (NYSE:F) at River Rouge at Michigan has altogether stopped the usage of steel and is now 100% aluminum based. This decision has been made by Ford (NYSE:F) and it has already executed the entire plan.

 

Ford (NYSE:F) has a lot riding on sales of its brand new F-150. Making such a huge shift can either prove to be a breakthrough or can prove to be suicidal attempt for this huge company. Issues with technology and the fact that the customers might out right reject this new machinery are major concerns till F-150 comes into the market. For this we have to wait and watch.

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