The SUV craze continues, and this time it’s Ford/Lincoln feeling the “pinch”. The automaker really underestimated how many people needed/wanted the gigantic Expedition/Navigator, and now it needs to pump up production by 25 percent. Thank you, everyone who believes in conspicuous consumption.
We’ve already been aware that the Navigator is hard to find at dealers, because everyone wants one. Sales of the luxury SUV were up 97.5 percent last month. Cadillac is sweating bullets over this one. The redesigned Expedition is also hot property, with a 57 percent increase in sales last month.
To keep production flowing smoothly, Ford has sunk $25 million in upgrades for the Kentucky Truck Plant, including a new 3D printer. I’m sure the locals appreciate the insatiable appetite their fellow Americans have for big, three-row SUVs. Overtime and voluntary weekend shifts have also been rolled out.
This is great news for Ford, which has been struggling with falling profits. Big SUVs, like big trucks, are big cash cows. Profit margins are typically huge on these things, so maybe Ford can make up some lost ground here.
But, if you’re looking to buy an Expedition or Navigator, don’t expect to get some great deal. Because everyone wants these things, you’ll likely have to pay a hefty amount for the privilege of driving one.