How Much Does it Cost Ford to Build a New F-150?

How Much Does it Cost Ford to Build a New F-150?

Ford motors spend a lot of money on building the new Ford F150. It is the 5th largest automobile manufacturer located in US Dearborn.

How Much Does it Cost Ford to Build a New F-150? According to our research, the average manufacturing cost of a new Ford F-150 is between $25,000 to $28,000. From this amount, Ford can earn a profit of approximately $12,000 to $14,000. 

 The total revenue of it is approximately $140-$155 billion. The dealer cost of this vehicle is between $27,855 to $65,000.

How Much Does it Cost Ford to Build a New F-150?

Each Ford truck belongs to different categories, and expenses on it also vary. Therefore, it shows that truck maker who manufactures the automobile have variable costs depending on the various aspects. 

There are two different types of cost based on manufacturing.

Fixed Cost: Fixed cost involves the expenditure like the testing prototype, cost to maintain facilities, and many others. 

Variable Cost: Variable cost involves expenditures like labor cost, advertising charges, auto-parts, and other relatable items.

Factors Affecting the Manufacturing Cost of New Ford F-150

The majority of automakers have a policy of not disclosing the entire cost during the vehicle’s production process. 

Truck costs rise over time and fluctuate with each class like a half-ton, and heavy-duty truck pickup does not have the exact cost before and after manufacture.

     Features       Cost & %age   F-150 Trim Level     Cost
     R&D sector    5.0-8.1 billion     F-150 XL     $28,635
  Advertising charges     $2.38 billion     F-150 XLT     $35,545
    Build cost      >$5400     F-150 Lariat     $47,590
   Labor cost      $55-$75     F-150 King Ranch      $57,000
  Cost of auto parts      >55%     f-150 Platinium      >$57,805

Auto parts cost

Massive auto parts are used to manufacture the Ford F150 during production. However, engine and transmission, instrument panels, HVAC systems are the primary building block of the truck. 

Nearly 100 suppliers provide auto parts to Ford manufacturers. It includes Flex-N-Gate, NHK spring, U-Shin Europe, Summit plastics, Oregon, and others that supply various specific parts.

U-Shin Europe supplies the steering column, Carabobo provides the exhaust systems. 

Ford automakers spend costs on auto parts above 55% of the total expenditure for F150. These reflect the current average price of the various trims of this model at different mileage. 

Cost of Raw Materials

Manufacturers require raw materials for manufacturing the F-150 truck. As a result, petroleum products, glass, aluminum, and other necessary items may significantly use in the automobile sector across the world. 

Ford company expenses on that portion are around 45%-55%. In addition, using aluminum instead of steel improves fuel efficiency that is approximately 5%-8%. 

 Raw material after extraction goes through processing and then auto-parts and other supplies manufacture and supply to the automotive industries. 

Ford is the pioneer in mass-production innovation. Adaptive use of these is one of the success factors in automaker industries. 

Labor cost

According to researchers, the build cost of the Ford F150 is above $5400. Thus, it is the cheapest truck among another vehicle that introduced by this automaker company.

The total labor hour of each manufacturer has different, which include various other options like pension, their spouse, and other facilities. 

Advertising cost

In the survey period from 2007-2021, Ford has measured and unmeasured advertising expenditure, which uses various sources of promotion. 

The company put massive spending on the advertising campaign and marketing on this high-selling truck in its record. 

In this period the cost varies with time, but in the end, it reaches its peak. They started their advertising spending from $2.40 to $2.38 billion in recent years. 

Addition of Sales Tax

Sales tax has a vital role in the advancement and development and growth of the various local communities. 

These are the best-selling product to boost up the automaker’s global profit above 85%. F-150 is worth and profitable item alone in the whole company. 

Expense on research and development

During the upcoming fiscal year, the research and development intensity of Ford automakers has increased. As a result, the expenses of R&D for manufacturers reach approximately 5.0 to 8.1 billion in recent years. 

They are investing in it more for the manufacturing of new models and products. It also better customer satisfaction, performance, and safety. It includes various aspects like salaries, supplies, and other related expenditures. 

Each automobile industry invests in this department to produce a more attractive and efficient product that accomplishes customer demand.

Globally spending it on the automotive sector is expected to reach around $100-$105 billion in recent years. Europe and Japan have a high contribution of approximately 25% and 35% of global investment in that department. 

The advancement of modern technology leads to add up investment in research and development.

Ford introduced efficient features with low manufacturing cost

Ford F-150 is a high-selling light-duty pickup truck. It has impressive capabilities, features and a reliable workhorse.

During the production process, Ford introduces the highest-quality features in a variety of pricing ranges.

Hybrid engine

Ford innovate the new addition in the F-150, which is the hybrid powertrain option. They offer a 3.5L power boost V6 engine that produces high horsepower and torque as compared to others. 

It generates 400 to 440 horsepower and 490 to 550 pound-feet of torque, which is significant. As a result, Ford spends almost $4.6 billion and reduces its internal combustion engine expenditure up to $450 to $500 million. 

Powertrain option

In this way, the automaker introduced six options of Powertrain. All of these have the peculiar property of torque and horsepower. For example, the turbocharged engine offers 490 to 550 lb-ft of torque and 300 to 400 horsepower. 

They also offer a 5.0L V8 Powertrain that produces the same horsepower and torque. Another one is the 2.7L V6 that suitable for good fuel economy. 

Towing and hauling capacity

According to EPA, on a single fill-up of petrol, it covers a range of about 650 to 750 miles. Its maximum towing capacity is above 10,000lb.

With a 3.5L power boost V6 engine, this light-duty pickup truck can tow up above 12,000 pounds. 

Interior and exterior layout

Ford F-150 becomes the American best-selling and favorite among the customer due to its attractive and rugged layout. 

They make new advancements with the upcoming years, but some iconic features remain stable. For example, the cargo bed has the LED lightning and projector headlamps.

A variety of exterior designs may offer by the manufacturer. In addition, it has various color and trims choices (chrome, body-colored, and black) for truck lovers. The exterior-color cost of this model adds up to around $2,500. 

The interior of it was also comfortable and convenient. The seating arrangement is quite cozy and has plenty of cushioning that makes your journey easy without tiring. 

The display screen, gauge, and others are equipped with advanced technology and are easy to use and control.

Best Safety Features

This amazing truck comes with several airbags.

They have various varieties like the front, side-impact, overhead airbags that protect the driver and passenger during the collision. 

In this way, seatbelt pre-tensioners during the accident positioned the occupant at their place. 

Anti-lock brakes are standard on each truck that monitor when a tire stop moving after applying hard braking. 

Infotainment System

F-150 has the best SYNC 4 infotainment system that has a 12 to14 inch display screen. It also has advanced technology voice-recognition features so you can command according to your choice. 

They have a navigation system and wi-fi hotspot access that assist you can find your destination with ease. Ford F150 is also equipped with the B&O audio setup with an HD radio.

 For the best sound quality, these properly place around the cabin. In addition, the automaker will introduce Google Android to drive this system in upcoming vehicles. 

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