New Ford Dodge trucks seen facing tough market
DETROIT (Reuters) - Upgraded pickup trucks unveiled at the Detroit Auto Show by Ford Motor Co (F.N: Quote, Profile, Research) and Chrysler LLC face a weak market and tough competition, limiting the financial gains Ford can expect from its market-leading F-150, a leading analyst and auto dealer said on Monday.
“We expect the profit contribution from a relaunch to be muted as the new vehicles face fresh competition from one-year-old GM and Toyota pickups, as well as a soft pickup market,” Lehman Brothers analyst Brian Johnson said in a note for clients.
“We maintain our cautious outlook for (Ford) in 2008 and 2009,” Johnson said.
Ford unveiled a revamped F-150 pickup truck on Sunday, a new version of its most profitable vehicle and the best-selling vehicle in the United States. At the same time, privately held Chrysler unveiled a new version of its competing Dodge Ram.
“While too early to call a winner, both vehicles appear to be evolutionary, not revolutionary,” Lehman’s Johnson said.
He added: “While we expect some loyalist effect to help sales of the new F-150 in the second half of this year, we are worried that in the current environment, the market share gain may be even more short-lived than historically, and pricing gains may disappear.”
Separately, Autonation Inc. (AN.N: Quote, Profile, Research) Chief Executive Mike Jackson told Reuters that despite significant improvements in both new trucks, overall sales would continue to decline because of the pressure on the U.S. housing market.
“Both are terrific new trucks. Both have interesting new features. Some luxury cars don’t have the interiors these trucks have,” Jackson said. “But pickup truck sales cannot recover until housing recovers.”
Ford, which lost its No. 2 position in the U.S. market to Japanese rival Toyota Motor Corp (7203.T: Quote, Profile, Research) last year, saw its overall U.S. sales slip 12 percent in 2007, partly because of lower demand for its pickup trucks. Continued…
Tags: Auto, auto deal, Auto Show, cars, Chrysler, detroit auto show, Dodge, Ford, ford motor, ford motor co, gm, launch, lehman brothers, lehman brothers analyst, luxury cars, new vehicles, pickup trucks, reuters, s market, Toyota, toyota motor
