- First Name
- Balu
- Joined
- Jun 9, 2021
- Threads
- 4
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- 493
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- Location
- Coral Springs, FL
- Vehicle(s)
- 2021 Gladiator, 2021 Tesla Model Y
Ford has always sent a good mix of trims down the line from day 1Unfortunately, it is true IF YOU UNDERSTAND MANUFACTURING. Resources will be allocated to the highest profit margin product in an environment of scarcity. If the highest profitable vehicle can not be made because of the scarcity of a particular part, those parts will be allocated to the next profitability tier down.
NO!!!, they are not going to hold on to parts just waiting for a single part to make 1 vehicle that brings $2000 profit when they could make 5 vehicles that make $1500 profit in the same time period. By the same logic, they are not going to skip tier 2 and go to tier 3 and make 5 vehicles that make $500 profit in the same time period.
It all deals with the logistics of distribution and Just in time inventory. If there were no issues with the inventory we would see more of a first ordered, first built situation.
Profitability is important Quarterly for publicly traded companies because it affects stock price.
It's why you see so many base Big Broncos already even though some of the high end trims are double the price per unit. Same with XL and XLT F150s
Some other brands start their line with the upper trims only first and then start adding in base models as they need.
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