Ford Motor is not concerned about new features in its new F-150 that sets prices for people leaving the increasingly expensive full-size truck market, according to Jim Farley, Ford’s Chief Operating Officer.
“This is the content that people want and is more than willing to pay for,” he said during CNBC’s “Squawk Box” on Friday. “People are happy to pay if the product is more productive.”
On Thursday night, Ford unveiled both traditional and hybrid versions of the 2021 F-150 pickup. The truck is slated to begin arriving at dealerships this fall. A fully electric F-150 is expected sometime in the next two years.
Ford has not announced the price of the new F-150. The starting price on 2020 models ranges from $ 30,000 to $ 70,000.
The full-size truck segment has become increasingly expensive in the past decade as new models and features are released. The average price paid for F-150 trucks this year is more than $ 49,000, according to automotive research firm Edmunds.
“With Ford’s large buyer base serving as a test bed for new features, the next generation will surely outperform the F-150 above an average price of $ 50,000,” said Ivan Drury, senior information manager at Edmunds.
New unique features of the 2021 F-150 include a segment-free, hands-free road driving system, 12-inch displays, and over-the-air upgrades. Ford promises that its hybrid model will offer great performance and fuel efficiency.
The vehicle also includes newly designed work areas in the center console and tailgate, flat seats, and an integrated generator that can power tools at workplaces or televisions and speakers at tailgate parties.
Ford needs its F-Series trucks, including the F-150 and its older siblings, to push a global restructuring plan and pay off debt related to the coronavirus pandemic. Trucks accounted for 37% of the automaker’s 2.4 million vehicles sold last year in the U.S., 10 percentage points more than in 2010.
The interior of the Ford F-150 2021 has been redesigned to include more storage and technology, as well as folding seats.
“This is our most important vehicle at Ford worldwide,” said Farley. “It is important to the American economy, no one builds more trucks in the United States than Ford.”
The nearly 900,000 F-Series trucks that Ford sold last year in the United States generated about $ 42 billion in revenue, according to a study that Ford commissioned from the Boston Consulting Group. Ford’s automotive revenue was $ 143.6 billion in 2019.
According to the study, Ford F-Series trucks contribute approximately $ 49 billion to the US gross domestic product through production and the multiplier effect.
An available 7.2 kilowatt on-board generator that Ford calls “Pro Power Onboard” features four 120V 20A outlets and a NEMA L14-30R 240V 30A on the Ford F-150 2021. The truck is available with three levels of electrical output based on engine choice.