It’s not just Ford Motor Company (NYSE:F) F-150 trucks that are seeing high demand these days.
As CNBC reports, the automaker is seeing such high demand for its full-size SUVs — the Ford Expedition and Lincoln Navigator — that it will soon boost production levels for both models:
The automaker will be increasing production of the two SUVs by approximately 25 percent. Both models are manufactured at Ford’s truck plant in Louisville, Kentucky.
“The response from our customers regarding our new full-size SUVs has been exceptional,” said Joe Hinrichs, Ford’s president of global operations. In January, Navigator sales surged 88.6 percent according to the research firm AutoData.
Ford noted that the biggest surge in SUV demand is coming at the high-end of the market, with customers flocking to its fully-loaded versions. This is evidenced by the fact that the average selling price for the Lincoln Navigator jumped by $21,000 in January. Meanwhile, the average transaction price for a new Ford Expedition was up $7,800 in the same month, the company said.
The trend toward SUVs flies in the face of Americans’ previous move away from larger vehicles as gas prices soared in the mid-2000s amid a massive energy price bubble. With the average price for a gallon of gasoline currently sitting around 40% off those peak levels, customers appear willing to drive gas-guzzling large vehicles once again.
Ford Motor Company shares fell $0.02 (-0.19%) in premarket trading Tuesday. Year-to-date, F has declined -12.22%, versus a -0.57% rise in the benchmark S&P 500 index during the same period.
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