Glitches Delayed Sale of New Ford F-150 Pickup Trucks
December 06 2016 - 6:20PM
Dow Jones News
Ford Motor Co. delayed by about one month the sale of thousands
of new F-150 pickup trucks with improved towing capability and
efficiency due to glitches with an advanced 10-speed transmission,
the latest challenge the auto maker has faced in a drive to make
its cash cows use less fuel.
The Dearborn, Mich., auto maker has worked for several years to
make its best-selling work trucks more efficient. A move to make
F-150s and heavier-use Super Duty versions with aluminum bodies has
been costly, complex and time consuming, for instance, but has
helped the company better meet stringent U.S. fuel-economy
standards.
The 10-speed transmissions, slated to be fitted on certain
F-150s with a turbocharged engine and the sporty "Raptor"
performance truck, hit a quality snag during its manufacturing
launch. Transmissions—long capped at six speeds—can become more
efficient when more speeds are added, but are complicated to
build.
Higher-speed transmissions are seen as adding a small percentage
of distance to a vehicle's miles-per-gallon rating.
Ford said Tuesday the manufacturing issue slowing the launch has
been resolved, and F-150s with the new transmission are now on
sale. It is unclear how many units were affected and what financial
toll the delay will take on fourth-quarter earnings. The auto maker
declined to specify the issue that prompted the delay.
"Launches are complex, and every one of them presents different
challenges and opportunities," a Ford spokesman said. "Our process
is to work through any issue and ensure that our customers receive
a quality vehicle."
Ford sells other variants of the F-150 pickup that have more
conventional transmissions and sell in higher numbers. Dealers say
they haven't had trouble getting those models.
Other auto makers struggle to maintain quality while introducing
new fuel-saving technologies. Consumer Reports and J.D. Power have
dinged companies for troubles with new transmissions designed to
improve fuel-economy ratings.
Ford has spent several years developing nine- and 10-speed
transmissions with rival General Motors Co. as part of a broader
effort to defray the hefty cost of introducing more fuel-efficient
components. The 10-speed is the first of its kind to debut on a
mass-market production vehicle and is aimed at helping the Detroit
giants keep pace with rivals rolling out nine-speed
transmissions.
At a technical briefing Monday, GM engineers said the rollout of
the nine-speed is going smoothly. It is used in a midsize sedan and
slated for several more GM models in coming years. It will
introduce the 10-speed in a Chevrolet sports car.
Ford began delivering 2017 models of the F-150 in October, but
the company sent an email to dealers on Nov. 22 saying shipments of
the vehicles with 10-speed transmissions were on hold to complete
"a number of retrofits." It pegged the built inventory at more than
15,000 pickups.
"The plants will be doing everything they can to prioritize
retail orders and draw down the inventory by the end of the year,"
the company wrote in the email, which was reviewed by The Wall
Street Journal.
The F-150 truck is among Ford's biggest moneymakers, and the
delays come at an inopportune time for the No. 2 U.S. auto maker
with U.S. demand for large pickups booming amid continued low
gasoline prices.
Ford has encountered other launch delays on its new pickups
since making waves in 2015, when it began redesigning its F-series
trucks with a new fuel-efficient aluminum body, switching from a
steel one.
In late summer, Ford delayed shipments of its new heavy-duty
F-Series truck due to a parts issue just as the new redesigned
models was starting to arrive in dealerships. Last year, as Ford
was ramping up production of its new F-150, the company also
struggled with parts problems that forced it to cancel planned
overtime and halt the assembly line during regular shifts, leaving
dealers short on inventory.
Mike Colias contributed to this article.
Write to Christina Rogers at christina.rogers@wsj.com
(END) Dow Jones Newswires
December 06, 2016 18:05 ET (23:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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