Ford Motor stated it will increase U.S. production of its largest sport utility vehicles in a move to gain profits in a market where consumers favor larger, more comfortable automobiles.
Ford’s Kentucky Truck plant in Louisville will boost the production rate for Ford Expedition and Lincoln Navigator sport utility vehicles by 20 percent in July – the second 20 percent boost in a year for both models, executives stated during a media briefing on Monday.
The move highlights Detroit automakers’ aggressive efforts to capitalize on popular, profitable large automobiles in America’s heartland, even as policymakers in California, China and Europe push for smaller, electric vehicles to increase carbon dioxide emissions associated to climate change.
The Trump administration, however, has proposed freezing fuel efficiency standards – a decision that would make it easier for auto companies to sell large SUVs and pickup trucks.
With gasoline relatively cheap, U.S. clients are paying premium costs for large SUVs that seat eight people and can tow a four-ton trailer.
The average transaction price of a new Ford Expedition is $62,700, Ford U.S. marketing director Matt VanDyke stated, up $11,700 from the previous year. Ford does not reveal profits by model line. Average costs for the luxury Navigator increased to $81,000 in February from $78,000 a year previously, according to Lincoln data.
In January, Ford stated transaction prices throughout its U.S. model lines averaged $38,400, higher than the $34,000 industry average.
