It's no secret that off-road trims are becoming more and more popular. Despite the data that suggests that very few people ever really use all that capability, the vehicles often look more attractive to buyers; and a little more ground clearance, chunkier tires, and a name that sounds vaguely adventurous give automakers the license to charge more, too. Ford's latest sales results offer a concrete explanation for why automakers keep going back to that well: buyers keep showing up.
In its third-quarter earnings recap, Ford chief financial officer Sherry House said higher-margin off-road vehicles now account for about a quarter of the company's U.S. sales. She also credited a richer product mix, including Tremor and other off-road trims, with helping Ford increase adjusted earnings despite lower revenue. To be specific, the brand generated $49.5 billion in revenue during the quarter.
That's actually down 2 percent year over year, as adjusted earnings before interest and taxes climbed 3 percent to $2.7 billion. Cost controls helped too, so the credit doesn't all belong to skid plates. Still, Ford clearly likes what those vehicles do for its bottom line.
Its more detailed sales report demonstrates why. Through September, its off-road performance lineup accounted for 364,141 sales, or 24 percent of the company total. That share rose 3.8 percentage points from a year earlier, while volume increased 8.4 percent. Importantly, the brand's definition of "off-road performance" is somewhat broad; it includes Raptor, Tremor, and FX4 packages, across which is a wide swath of hardware, capability, and prices.
And demand still seems to be growing. Raptor sales increased 4.6 percent through September, while Tremor sales jumped 122 percent. The Bronco itself posted record third-quarter sales of 38,020 vehicles. That gives Ford, and automakers with similar offerings, a clear reason to continue leaning into this trend.
The Raptor lineup also highlights a key reason why automakers are keen on the trend: the margins are great. Advertised starting MSRPs as of this story’s publication are $59,860 for the Ranger Raptor, $78,815 for the F-150 Raptor, and $82,685 for the Bronco Raptor. Even the least expensive starts well above the $50,562 industry average transaction price Kelley Blue Book reported for September.
