Ford unveils new F-Series Super Duty trucks

DETROIT – Ford Motor is redesigning a key product line, based on new software and connected data metrics, to boost profits in its commercial vehicle business.

The Detroit automaker on Tuesday unveiled the 2023 F-Series Super Duty trucks, a line of vehicles ranging from large pickups to commercial trucks and chassis cabs used for emergency response, towing and plowing, as well as construction or utility work.

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The vehicles – part of Ford’s best-selling F-Series range of trucks – are high-margin, key to retaining repeat fleet customers and an important part of Ford’s plans to grow its commercial business.

“These are very important. Super Duty is the size of Southwest Airlines, Marriott or Nordstrom’s revenue. It’s a big part of the business,” Ted Cannis, CEO of Ford Pro, told CNBC. “And now we’re bringing them into the digital age.”

Cannis declined to disclose revenue for Ford’s Super Duty line, but Southwest, Marriott and Nordstrom most recently reported annual revenue between $14 billion and $16 billion. Ford reported more than $136 billion in total revenue in 2021.

Super Duty trucks have more than 50% market share in utility, mining, construction and emergency response vehicles, according to Ford, citing data from S&P Global Mobility.

The new trucks’ designs are significantly different on the outside, with redesigned C-clamp lights and larger grilles. But the most significant changes for Ford are not visible to the naked eye, including new electrical architectures or vehicle brains. The updates will allow Ford to introduce new software, telematics tools and fleet management tools, Cannis said.

Software tools will help businesses track maintenance needs, vehicle locations, driver behaviors, lost idle time and other metrics. Fleet operators can also set operating times that will prevent vehicles from starting outside of approved hours.

Such services are seen as significant opportunities for Ford to generate recurring revenue throughout the life of vehicles – something automakers like Ford have been unable to achieve beyond routine maintenance and repair through franchised dealers.

Ford Pro’s mission is to act as a one-stop shop for the vehicles and management software companies use to track them, Cannis said, setting the stage for a subscription-based business and additional recurring revenue opportunities for Ford that have historically been the domain of third-party companies.

Connected features are powered by built-in 5G connectivity – a first for pickups in the US – using AT&T service and a Qualcomm modem.

“We’re focused on maximizing productivity, maximizing the bottom line for businesses of all sizes,” said Raj Sarkar, Ford Pro general manager of marketing and product strategy, during a media briefing.

Ford Pro is one of the company’s three main business areas under CEO Jim Farley’s Ford+ restructuring plan, which aims to grow and create value in all three areas over the coming years.

The Super Duty trucks also feature new interiors as well as other towing and towing updates – both staples for owners of larger trucks. New features include trailer navigation, which plots routes that can be safely navigated with given dimensions and weight to avoid potential problems with low bridges and tight turns, and a second backup camera that can be used when the tailgate of a truck is down.

Although Ford is investing billions in electric vehicles, the new trucks are powered by one of four V-8 gasoline or diesel engines. Large trucks like Ford’s Super Duty are expected to continue to be powered by traditional engines for the foreseeable future.

The 2023 F-Series Super Duty is built at Ford’s Kentucky and Ohio assembly plants. Pricing will be available closer to launch in early 2023. Starting prices for vehicles currently range from around $40,000 to nearly $100,000.

Ford unveiled its new Super Duty products a day after rival General Motors announced updates to the 2024 Chevrolet Heavy-Duty pickup that is expected to go into production in the first half of next year.