Ford Motor Company (NYSE:F)’s new F-150 pickup will face challenges

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Ford Motor Company (NYSE:F) is moving towards the launch of its new pickup truck – the F-150. Within days the prototypes will be introduced. By the end of the year, the company plans to start shipping the truck to dealers and by the beginning of 2015, volumes of the truck will be produced.

Many investors as well as truck enthusiasts have been waiting for F-150. It may become a game-changer in the market. The truck has an aluminium body – a bold move by Ford Motor Company (NYSE:F). The new truck weighs 700 pounds less than the normal pickup truck. This makes the truck superior – it will burn less fuel per mile.

General Motors (NYSE:GM) is the biggest competitor of Ford Motor Company (NYSE:F). General Motors (NYSE:GM) introduced the new truck last year. This truck had steel body. The prices of gas have started decreasing recently so this means that the company had taken a good decision to play it safe, while its competitor decided to take a bold step into producing an aluminium truck. Obviously, the investment on the aluminium body is huge and the company will have trouble alone in trying to get enough money to recoup the cost.

Ford Motor Company (NYSE:F) has not released the statistics relevant to the fuel economy of the new pickup F-150. It is expected to have better statistics than the truck model of 2014. The new truck will also have several competitive advantages. In the last month, Ford Motor Company (NYSE:F) said that the new truck’s economy will be 5% – 20% better than that of the current model.

The best economy of the new truck is due to the 2.7L EcoBoost V6 engine. According to the company, under typical configurations, this engine is capable of catering to the needs of over 90% truck buyers who are looking for light-duty engines. It has been estimated that this new engine can provide a mileage of 27 – 28 mpg over the highway.

This makes F-150 the most fuel-efficient truck in the market. F-150 is a very efficient, full-sized and gasoline powered truck. No wonder the investors have been waiting for it. This truck might match the famous Ram 1500 EcoDiesel of Fiat Chrysler, in the fuel economy. This truck can take its automaker up and ahead of its competitor, General Motors (NASDAQ:GM). General Motors (NASDAQ:GM) had released their new trucks last year. A simple 2014 model of Chevy Silverado 1500 has a rating of 22mpg on the highway.

Ford Motor Company (NYSE:F) needs to boost its prices if it must justify the investments it made in the aluminium body. The good fuel economy of the truck might attract truck buyers who can spend the fuel money once on the truck. But if Chevy and Ram reduce the prices of their pickup trucks, the customers would buy those hands down. Since the truck F-150 costs about $40,000 and it doesn’t have the luxuries of other trucks, the company might need to consider ways in which they can generate more money.

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