Ford Motor Company (F): The Automaker’s Pickups Drive Big Profits

Ford could have arranged to post a higher profit. But its costs were up in the quarter, because the company is plowing more of its money into developing new vehicles.

Ford Motor Company (NYSE:F) CEO Alan Mulally is in the midst of a multiyear push to build more vehicles off shared architectures, or “platforms,” an approach that improves quality while reducing costs. This year, Ford aims to build more than 85% of its vehicles using just its nine global platforms.

Getting that number closer to 100% will improve Ford’s financial performance — and it could improve quality as well. But that takes considerable investment, and Ford is making those investments now.

Ford Motor Company (NYSE:F) is also investing heavily in development of the next F-Series, due next year. Given the importance of the pickup line to Ford, it’s a safe bet that the upcoming new version is being lavished with attention right now as the company works to finish it up and put it into production.

With new pickups coming shortly from General Motors Company (NYSE:GM) and Toyota Motor Corporation (ADR) (NYSE:TM), and Chrysler’s Ram having received an update recently, the F-Series is facing ever-stiffer competition. Expect Ford to spare no effort (or expense) in making sure that the next F-Series is its best ever.

The article Ford’s Pickups Drive Big Profits originally appeared on Fool.com and is written by John Rosevear.

Fool contributor John Rosevear owns shares of Ford and General Motors. Follow him on Twitter at @jrosevear.The Motley Fool recommends Ford and General Motors and owns shares of Ford.

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