Ford Motor Company's (NYSE:F) latest version of its Ranger midsize pickup truck should make the model more competitive in its class, which is led by Toyota Motor Corporation's (TM) Tacoma (and Toyota's Hilux overseas) and includes such up-and-comers as General Motors Company's (GM) Chevrolet Colorado and GMC Canyon.
A key improvement for Ranger is a two-inch widening of the pickup bed, which allows easier hauling of drywall and plywood sheets. Do-it-yourselfers will appreciate Ranger's enhanced functionality. There may even be a few professional carpenters and drywall contractors who decide they no longer need a larger full-size pickup, such as the Ford F-150, the nation's best-selling pickup.
Big bet
Ford is betting that its marketing team can position Ranger as a truck for active lifestyles, folks who like to camp, haul jet-skis, explore unpaved roads and, yes, renovate a kitchen on their own. By contrast, the larger and heavier F-150 will be advertised as a serious work truck, that can be used on the weekends for transporting the family to church, grandma's house or to the beach - as well, of course, for owners who simply must drive the biggest and baddest.
A risk that may keep a few Ford executives up at night is the ever-present danger of cannibalization, the risk that the new Ranger may have grown so large, luxurious and powerful that it can replace the bigger and more expensive F-150 in the minds of some shoppers. For decades, full-size pickups of all brands have steadily gained size, power, hauling capacity, and fuel economy, evolving into rolling behemoths that far outstrip the needs of many owners. The newest midsize models already are as large and larger than full-size pickups once were.
This is why some advertisements will show Rangers arriving at campgrounds, with Mom and Dad unpacking tents and sleeping bags. Different ads will feature F-150 surging through muddy construction sites, loaded down with two-by-fours. Those clever Ford marketers already know who you are and where you're seeing their ads.
When Ford commences production of the 2024 Ranger late this summer at its Michigan Assembly Plant, the U.S. will be the final global market in which the new model appears. Last year, the new truck was the No. 1 seller in 18 countries, Ford says, and No. 2 in twenty countries (presumably behind Toyota).
Coming home
Between 2011 and 2019, Ranger wasn't sold in the U.S.; during that time, Toyota Tacoma became more dominant, grabbing more than a third of the segment. Ford also now sells Maverick, a small pickup that outsells the current Ranger.
The bigger mystery for investors than the new Ranger's prospects for success is how soon the $50 billion capital that Ford is investing in BEVs through 2026 will begin to generate a return. The company plans to manufacture BEVs at scale at a run rate of 600,000 units globally by late 2023 and 2 million by 2026.
Ford remains profitable, even with all its spending on EVs. It generated $10.4 billion in operating profit in 2022 and expects to make about $10 billion in 2023, including roughly $13 billion from its non-EV businesses.
According to its latest earnings report, Ford lost an average of $58,333 per electric vehicle sold in the first three months of 2023. Ford delivered about 12,000 BEVs for the first quarter; Ford Model e lost $700 million (before interest and taxes) in the same period. Meanwhile, EV sales only generated $700 million in revenue, compared to $1.6 billion in the last quarter of 2022.
Ups and downs are to be expected, to be sure, during the early days of battery-powered models, especially when R&D outlays are high and sales are low. My analysis, however, suggests that BEVs will take longer than Ford is forecasting to capture a large segment of the U.S. vehicle-buying public. Consumers are wary of insufficient and inconvenient public chargers, limited range, as well as the high price of electrics compared to vehicles with internal combustion engines.
This makes a snazzy new midsize, with the prospect of additional cash flow, all the more welcome to Ford shareholders.
Pricing for the 2024 model starts at $34,160, while the stylized Ranger Raptor - with a larger 3.0-liter engine - will start at $56,960. Both prices include a $1,595 shipping charge.
Though Ford is selling a battery-powered version of its F-150 pickup, called Lightning, the company has sidestepped any talk of a similar Ranger BEV, at least for the moment.
Drywall no problem
As detailed in Automotive News: "The 2024 model is 2 inches wider and 2 inches longer than the current generation. Engineers moved the rear shocks and shock mounts outside of the frame rails for better control and redesigned the cab for better sight lines.
"The 2.3-liter EcoBoost that powers the current model will continue as the standard engine on the 2024 Ranger. It will generate 270 hp and 310 pound-feet of torque." A 2.7-liter with more power and torque is also available.
The new truck has been designed to more closely resemble the F-150, responding to requests from customers overseas, the company said.
"The Ranger will be capable of over-the-air software updates and include a number of driver-assist technologies, although it will not offer Ford's BlueCruise hands-free system," the Automotive News said.
Turning bearish.
Analysts from Wall Street and Seeking Alpha have turned noticeably bearish on Ford since last fall. Seeking Alpha's own Quant ratings also have dropped to hold from buy based on sluggish growth of sales and earnings. My own rating is hold, based on the risk inherent in waiting for returns on Ford's large investment in BEVs.
Since January 2022, the company's share price has fallen from the low 20s to the current level of just under $12, with very little on the horizon suggesting a reason to buy.
An exception to the above is the unlikely prospect of a soft landing for the economy and a rise in consumer confidence that might bring a short-term boost to Ford and other automakers. Such a development would be excellent news for the team bringing out the new Ranger, as well as for Ford management and shareholders.
This article was written by
Doron Levin
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I am a journalist based in Detroit, having spent almost my entire career writing about business and economic subjects for The Wall Street Journal, New York Times, Detroit Free Press and Bloomberg. I'm the author of two books and am an acknowledged expert on the world automotive industry.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of GM, TM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
FAQs
Will the 2023 Ford Ranger be redesigned? ›
The Ranger has been fully redesigned for the 2023 model year! And you'll be able to recognize this new midsize truck as soon as you lay eyes on it.
What engine will the 2023 Ford Ranger have? ›Engine | 2023 Ford Ranger
The 2023 Ford Ranger comes with a 2.3L turbo-four. In some foreign regions, a turbodiesel option is available, but it doesn't look like it will come to the U.S. If you want a 2023 Ford Ranger Raptor, expect a 3.0L V6 engine.
Originally the post indicated order banks would open on April 17, 2023, and now it states it will be on May 23, 2023. The current 2023 Ford Ranger order banks will close on April 27, 2023, for consumers. Commercial businesses have until March 24, 2023 to get their orders in.
What is the towing capacity of the 2024 Ford Ranger? ›The max towing capacity of the 2024 Ford Ranger Raptor is 5,510 lbs. with a 1,411 lbs. payload.
Will the 2023 Ford Ranger have a V6 in the USA? ›Engines. The 2023 Ford Ranger is available with a choice of four different turbocharged powertrains ranging from a 2.0-litre four-cylinder turbo-diesel to a fire-breathing 3.0-litre EcoBoost twin-turbo petrol V6.
What is the gas mileage on the 2023 Ford Ranger? ›Fuel Economy and Real-World MPG
The EPA estimates the rear-wheel drive Ranger will earn up to 21 mpg city and 26 highway. The four-wheel-drive version has estimates as high as 20 mpg city and 24 highway, but the Tremor model sees both ratings drop to 19 mpg.
A V8 heart transplant for the new-generation 2023 Ford Ranger Raptor super ute appears unlikely, after Ford executives reportedly ruled out Mustang V8 power for its close relative under the skin, the US-market Bronco Raptor 4WD.
How much horsepower does a 2023 Ford Ranger 3.0 V6 have? ›On the 2022 model year, opting for the SuperCab will give you a seating capacity of four and a 72-inch bed. The SuperCrew will give you a seating capacity of five with a 60-inch bed. Meanwhile, the 2023 Ford Ranger's SuperCab is just slightly longer at about 73 inches, while the SuperCrew cab is about 61 inches long.
Will the 2024 Ford Ranger have a V6? ›A more powerful twin-turbo gasoline-fired V-6 engine joins the lineup this year, and both engines can be had with rear- or four-wheel drive. We're most excited about the high-performance Ranger Raptor variant, but we review that model separately.
What is the average price of a 2023 Ford Ranger? ›
The 2023 Ford Ranger starts at $27,400. That's for an XL version with the smaller SuperCab and rear-wheel drive (RWD). Adding 4-wheel drive (4WD) costs $3,645. Or $3,485 if ordering it with either of the top two trims.
What is the predicted reliability of a 2023 Ford Ranger? ›The 2023 Ford Ranger has a predicted reliability score of 86 out of 100.
What is the biggest trailer a Ford Ranger can pull? ›Requires available Trailer Towing Package (53R). Max towing varies based on cargo, vehicle configuration, accessories and number of passengers. Notes: • Ranger calculated with SAE J2807® method. Do not exceed trailer weight of 3,500 lbs.
When can i order a 2024 Ford Ranger? ›The new 2024 Ford Ranger and Ranger Raptor will be available for order in late May, with trucks arriving before the end of summer.
How big of a camper can I pull with a Ford Ranger? ›...
What Campers Can a Ford Ranger Tow?
| Camper Type | Dry Weight |
|---|---|
| Pop-up Trailer | 600-4,000 lbs. |
| Fifth Wheel | 2,400-20,000 lbs. |
| Classic Travel Trailer | 2,200-7,800 lbs. |
| Teardrop Trailer | 520-2,000 lbs. |
Which Ford Ranger engine is best? For outright power, no other engine is going to come close to the 292kW/583Nm outputs of the 3.0-litre twin-turbo V6 petrol engine. For better fuel economy, buyers can opt for the 7.2L/100km of the 2.0-litre twin-turbo four-cylinder diesel engine.
Who makes the new Ford Ranger V6 engine? ›Ford's Struandale Engine Plant in Gqeberha has begun building the new 3.0-litre V6 diesel engine for the next-generation Ranger models.
What is the top speed of the Ford Ranger 2023? ›What is the top speed of the 2023 Ford Ranger? The Ford Ranger top speed is limited to 110 MPH with its turbo-4 engine and is on par with the segment standards.
How big is the gas tank on a 2023 Ford Ranger? ›2023 Toyota Tacoma Gas Mileage by Configuration
Toyota Tacoma SR: 20 mpg city/23 mpg highway* Toyota Tacoma SR5: 20 mpg city/23 mpg highway* Toyota Tacoma TRD Sport: 19 mpg city/24 mpg highway* Toyota Tacoma TRD Off-Road: 19 mpg city/24 mpg highway*
How many miles will Ranger last? ›
How Long Can a Ford Ranger Last? Ford Rangers can last up to 20 years and beyond if they are well maintained and well cared for. The Ranger is built to withstand up to 300,000 miles and years upon years of use.
Is Ford phasing out V8 engines? ›With three stout V8 engines in the Ford lineup, 8-cylinder fans have plenty to choose from. And despite current trends, V8 engines aren't going away anytime soon, according to Ford.
Is Ford getting rid of the V8 engine? ›The 2023 Ford Mustang – revealed earlier this month – will be one of the last passenger-cars of its generation with a petrol V8, now the Blue Oval brand is reportedly planning on going out with a bang. Reports out of Detroit claim Ford has something even bigger planned before the iconic V8 disappears completely.
Is Ford coming out with a new V8 engine? ›Meet the Mini-zilla, Ford's new pushrod V-8.
With the debut of the fifth-gen 2023 Ford Super Duty lineup came two new engines: a high-output version of the 6.7-liter Power Stroke V-8 turbodiesel and an all-new 6.8-liter gas engine.
Based on data from 224 vehicles, 14,677 fuel-ups and 3,454,634 miles of driving, the 2003 Ford Ranger gets a combined Avg MPG of 17.58 with a 0.06 MPG margin of error.
What is the towing rating for the 2023 Ford Ranger? ›Max towing varies based on cargo, vehicle configuration, accessories and number of passengers. Notes: • Do not exceed trailer weight of 3,500 lbs. when towing with bumper only. Combined weight of vehicle and trailer cannot exceed listed GCWR.
What is the name of the 3.0 engine in a Ford Ranger? ›The Ford Vulcan is a 3.0 L V6 engine designed and built by the Ford Motor Company.
What is bigger Toyota Tacoma or Ford Ranger? ›The 2023 Ford Ranger hits that almost on the nose at 210.8 inches. The short-wheelbase 2023 Toyota Tacoma is 1.5 inches longer than the Ranger, while the long-wheelbase Tacoma is 225 inches long overall.
Will a sheet of plywood fit in a Ford Ranger? ›Due to its longer and wider wheelbase, the new Ford Ranger is able to accommodate a larger bed. According to Ford, the bed is big enough to fit a sheet of plywood or pallet flat between the wheel wells.
How well is the new Ford Ranger selling? ›Now it's ready for North America.” The Ford brand sold more than 1 million pickups around the world in 2022 and part of that sales success comes from Ranger. In the last decade Ranger sales have increased 112 percent globally, with over 86,000 sold so far this year.
How long is the wait for a V6 Ranger? ›
| Model | Wait time for new order |
|---|---|
| Ranger XLT, Sport V6 | More than four months |
| Ranger Wildtrak V6 | More than 11 months |
| Ranger Platinum | First deliveries mid-2023 |
| Ranger Raptor | More than 11 months |
Ford Ranger V6 engine specifications
The 3.0-litre V6 single-turbo diesel is offered in the Ranger XLT and above, making 184kW of power at 3250rpm and 600Nm torque from 1750rpm.
The 2024 Ranger Raptor — the third nameplate in the family of high-performance off-roaders — will start at $56,960 including shipping, 67 percent more than the base Ranger costs.
Where are 2023 Ford Rangers made? ›Previously caught on camera with minimal camouflage during testing in the US, the 2023 Ranger is a version of the vehicle developed in Australia (but built in Thailand) with changes to satisfy legal requirements and buyer preferences in North America.
What is the difference between the 2023 Ford Ranger SuperCrew and SuperCab? ›2023 Ford Ranger XL: $27,400 (SuperCab), $29,585 (SuperCrew)
The entry-level XL offers an extended SuperCab with reverse-opening rear half-doors or a SuperCrew crew cab with four full doors. The SuperCab enjoys a 6-foot cargo box, while the SuperCrew swaps more interior room for a smaller 5-foot box.
Based on Edmunds analysis of recent prices paid in your area, the Edmunds Suggested Price for the 2023 Ford Ranger XL base trim is $31,305. The Edmunds Suggested Price for a 2023 Ford Ranger is based on recent transactions in your area.
Is Ford coming out with new body style in 2023? ›The all-new Ford F-Series Super Duty goes on sale in early 2023 with some features and trim series available starting in spring 2023.
Will the 2023 Ranger be bigger? ›On the 2022 model year, opting for the SuperCab will give you a seating capacity of four and a 72-inch bed. The SuperCrew will give you a seating capacity of five with a 60-inch bed. Meanwhile, the 2023 Ford Ranger's SuperCab is just slightly longer at about 73 inches, while the SuperCrew cab is about 61 inches long.
Will the Ford Ranger get a redesign? ›Ford Motor Co. on Wednesday debuted a redesigned version of its globally-popular midsize pickup truck, the Ranger, for model year 2024 — including the high-performance Raptor model.
Is Ford making a 6.8 V-8? ›Ford gave the truck a new 6.8L V8 engine that is closely related to the 7.3L V8 that is also on offer. There are a couple of different sources for information, but this new gasoline V8 is rated between 400 – 405 horsepower and 445 lb-ft of torque.
What models is Ford discontinuing in 2023? ›
2023 Ford Edge Changes - Find the best Ford deals!
Ford announced that it would discontinue the Edge after the 2023 model year, and the SUV rolls into 2023 unchanged. That leaves five trims on sale with two available powertrains, including a 250-horsepower 4-cylinder and a 335-hp V6.
The Ford Transit Connect is officially dead in the U.S. after the 2023 model year wraps up, Automotive News confirmed with Ford. It was reported last year that Ford would discontinue the Transit Connect, but Ford originally stayed mum on the topic.
What is the most reliable Ranger? ›- 1998 Ford Ranger.
- 2007 Ford Ranger.
- 2009 Ford Ranger.
- 2010 Ford Ranger.
- 2020 Ford Ranger.
- 2021 Ford Ranger.
- 2022 Ford Ranger.
The short-wheelbase 2023 Toyota Tacoma is 1.5 inches longer than the Ranger, while the long-wheelbase Tacoma is 225 inches long overall.
Is Ford bringing out a V8 Ranger? ›A V8 heart transplant for the new-generation 2023 Ford Ranger Raptor super ute appears unlikely, after Ford executives reportedly ruled out Mustang V8 power for its close relative under the skin, the US-market Bronco Raptor 4WD.