Ford to Release Held Pickup Trucks to Dealers After Quality Checks

Ford Motor Company has decided to ship 144,000 redesigned F-150 and Ranger pickup trucks to North American dealers. 

These vehicles, previously withheld to address potential quality issues, are now being released as Ford aims to meet its profit targets and address market demand.

Resuming Electric Truck Shipments:

In addition to the F-150 and Ranger trucks, Ford will restart shipments of the F-150 Lightning electric trucks later this month. 

This decision follows a temporary halt in February and coincides with price cuts of specific Lightning variants by up to $5,500, reflecting Ford’s efforts to enhance market competitiveness and boost sales.

Impact on Profit Targets:

The availability of the F-150 and Ranger trucks is crucial for Ford to achieve its 2024 pre-tax profit target of $10 billion to $12 billion. 

By reaffirming this target, Ford underscores the significance of timely product deliveries in meeting financial objectives and sustaining market momentum.

Potential Quarter Impact:

The delay in shipping the trucks to dealerships may impact Ford’s first-quarter financial performance. The automaker is expected to release its quarterly earnings report on April 24. 

Ford’s Chief Financial Officer John Lawler indicated the company had approximately 60,000 F-150s in stock slated for shipment during the current quarter.

Quality Assurance Measures:

Ford’s decision to hold back the redesigned F-150s was driven by concerns over specific electronic components identified during quality assessments. 

Engineers conducted thorough analyses and updated the problematic software to ensure compliance with quality standards before releasing the trucks from the manufacturing plant.

Market Response and Stock Performance:

Despite the delay in truck shipments, Ford’s shares experienced marginal gains, reflecting investor confidence in the company’s ability to address quality issues and maintain market stability. 

In afternoon trading on the New York Stock Exchange, the stock was up by 8 cents per share or less than 1 percent.