Ford rehiring 1,000 workers to build F-150; will buyers with short term memory appear?
click to see the full comic
With the recent drop in gas prices (did I just see $2.20 on the sign?) and the possibility of GM and Chrysler merging, Ford's sales chief believes that there is a "pent-up demand" for his company's new F-150. Putting some money where its mouth is, Ford is getting ready to rehire 1,000 workers at the F-150 plant in Dearborn, Michigan, according to the Wall Street Journal. The workers were let go over the summer when gas prices were in the $4/gallon range and demand for big trucks was just tanking. The workers are being called back to start building the big trucks in January. There's no guarantee that "pent-up demand" is out there, but having a new SFE version of the iconic truck will not hurt the F-150's chances of climbing back to where sales once were. Whether those chances rise above the snowball in hell threshold is something I'm not going to be much money on.
[Source: WSJ / Salon via Tom Tomorrow]
Reader Comments (Page 1 of 1)
!!D 8:20AM (11/03/2008)
If a [wo]man in Dearborn, MI is fired and hired based on the fluctuation of foreign oil and its impact on the price of gasoline, the problem still exists.
I saw $1.99 Gasoline in Houston, TX yesterday. But I still believe Energy should be the #1 topic for the forthcoming President to address.
Reply
BoneHeadOtto 8:40AM (11/03/2008)
Who is supposed to have the short term memory here?? The consumers or Ford? I vote Ford
Reply
Lam Nguyen 9:05AM (11/03/2008)
That would be my first instinct as well... but lets think about it: automakers react to demands, so if consumers want more trucks... automakers will make more.
BoneHeadOtto 9:13AM (11/03/2008)
The automakers that succeed are those that react to future demands not present. By the time ford increases f-150 production we will be back to summertime gas prices. Reacting to the market means you are always a year behind. I think Fords actions here are very very short sighted.
brandon 2:49PM (11/03/2008)
Maybe for Ford saw the "pent up demand" for its 60mpg Fiesta or 50mpg Focus they wouldn't be in this mess.
Reply
tifosiotaku 10:23AM (11/04/2008)
http://images.encyclopediadramatica.com/images/5/5f/Epic_Ultimate_Facepalm_of_Epicness.jpg
Don't blame Ford, blame the wildly different emissions regs.
Charles S 9:47AM (11/03/2008)
Short-term memory or not, there is a segment of the population who is ready to pay $4/gal *AND* keep trucking along.
In reality, people desire for trucks probably only shifted a little bit in the last few years. The slow down in truck sales may have been affected by gas prices, but the economic slow down probably had a hand in it, too. I'd assume people are just keeping their old vehicles longer, and just holding off buying a new truck.
If the economic forecasts were more upbeat, then truck sales would have rebound with a vengeance. I'm glad US have a new found appreciation for smaller cars, but Ford is probably right on target on this one.
Reply
Yggdrasilly 9:58AM (11/03/2008)
I'm sure you're all thinking of the Rexall Ranger who uses his pickup truck as a commute vehicle, but I'm not sure this is where the "pent-up demand" is coming from.
Amazing as it may seem to you guys, there are plenty of people who still use pickup trucks for what they were made for--work.
Pickups are used by farmers and ranchers--the people who grow your food. They're used by independent contractors and tradesmen--the people who framed your house, installed its plumbing and wiring, and come out to fix it when it breaks.
These folks use tpickup trucks a lot, and the trucks wear out over time. They need to be replaced. Given the cost of gas and the tight credit market, it should be pretty obvious that a lot of people who need pickups for work have been deferring replacing them for the past few months. That's where the pent-up demand is probably coming from.
I realize the average white suburbanite doesn't know any actual blue-collar human beings personally, so I'm not surprised you've overlooked this point.
Reply
Sebastian 10:45AM (11/03/2008)
Just to make clear, we often mention that people who need a big vehicle (contractors being near the top of the list) should get them, and we're happy when there are more fuel-efficient versions of trucks for them to choose.
champ 10:17AM (11/03/2008)
"(did I just see $2.20 on the sign?)"
Did I just buy gas for $1.919 about an hour ago? Yup. Sure did.
http://www.desmoinesgasprices.com/
Yes, people have a short term memory. Yes sales of gas guzzlers will come right back up in inverse proportion to the price of gas.
Reply
Tim 11:09AM (11/03/2008)
These are the same people who support McCain or Obama and believe these politicians when they promise change.
PT Barnum was right. There is one sucker born every minute and they are called Republicrats and support the ONE party socialists party.
We, the Sheeple believe that voting for the lesser of two evils is a vote against evil and we treat the electorial process like a football pool. Our average IQ is 75 and we can't think for ourselves.
Look in the mirror. Are YOU a sheeple? BAAAAA
Reply
Richard 11:33AM (11/03/2008)
I'm surprised that Ford isn't applying their hybrid system in the trucks. That would probably spur some real sales jumps. They have the technology, I just wish they'd use it.
Reply
Michael Hippenhammer 7:15PM (11/03/2008)
Bring the 2.8l Powerstroke!!!!!!!!!!! Put this engine into the
F-150 and the Ranger like they do in other countries. This engine will make people happy. Plenty of power and excellent fuel mileage. Dump the gas V8!
Reply
Noz 2:12AM (11/07/2008)
This is why Ford, GM and Chrysler need to disappear. They are pathetic companies making crap products for a bunch of morons.
And people want to bail them out? Are they insane?
WTF is wrong with people. Scrap these POS companies and put these workers to work in alternative energy, wind, solar, whatever.
Reply