Steve Olliges has raced older Ford Broncos through the desert and has five vintage ones in his garage. But the Ford dealer has never sold one from his showroom in Las Vegas. Instead, he’s watched rival Jeep dealers in town peddle thousands of Jeep Wranglers to off-roading enthusiasts over the years. “Ford dealers have been saying forever: We need a Wrangler fighter,” Mr. Olliges said.
Finally, they’re getting one. After nearly a decade of plotting its return, Ford on Monday evening unveiled a new retro-looking Bronco reminiscent of the rugged, boxy original from the 1960s—the U.S. auto maker’s latest attempt to carve into a share of Jeep’s dominant position in the off-road adventure category.
“With Bronco, Ford is making a clear push into the off-road segment of the [North American] SUV market,” Credit Suisse analyst Dan Levy wrote in a note to investors Monday. “While we expect Wrangler to remain the leader in the off-road segment, we nevertheless see attractive opportunity for Bronco given its heritage.”
The Bronco, according to Levy, would contribute nearly $1 billion to Ford’s North American pretax earnings if sales reached 125,000 units. That’s based on profits per vehicle of about $7,500. That would make the Bronco one of Ford’s most profitable models, according to Levy.
Kumar Galhotra, Ford’s president of the Americas & International Markets Group, has said the company projects it will sell hundreds of thousands of new Bronco SUV’s per year. “They’re going to add substantial volume to the company, and they’re going to be growth volume because none of the vehicles exist today,” Galhotra previously told CNBC. “It is a net-add to the portfolio, net-add to volume and profitable volume.”
Ford unveiled its new “family” of Bronco off-road vehicles, including a smaller Bronco Sport SUV, online with a video narrated by actor Bryan Cranston. “This time it’s not just one horse. It’s a whole family,” he said as the vehicles scaled rocks and drove through treacherous terrains. “Built with the toughness of an F-Series and spirit of a Mustang; built to be the future of off roading.”
Todd Horwitz Chief Strategist BubbaTrading.com
Stop being a prophet and make profits
Micro Mini Portfolio Management Recording: on Saturday we did a great webinar on our micro mini futures portfolio management. I have attached that report below.