The 2023 Ford Super Duty F-350 Limited is a powerhouse in the automotive industry, showcasing the evolution of fleet sales for U.S. automakers. Ford, based in Dearborn, Michigan, has transformed its fleet business into a multibillion-dollar earnings generator, setting the stage for competitors like General Motors and Stellantis to follow suit.
Traditionally, fleet sales, especially daily rentals, were considered less profitable than retail sales and often used to offload excess inventory. However, Ford’s “Ford Pro” fleet business has defied these norms, bringing in impressive earnings of about $18.7 billion and $184.5 billion in revenue since 2021. This success has led analysts to hail Ford Pro as a “hidden gem” and liken it to Ferrari in terms of profitability.
With fleet sales typically accounting for 18% to 20% of annual U.S. light-duty vehicle sales, there is a significant opportunity for growth in this segment. The average age of fleet and commercial vehicles on American roads is 17.5 years, presenting a ripe market for automakers to tap into.
Ford’s commercial volumes have seen a strong 7% increase this year compared to 2023, solidifying its position as a leader in the fleet market. Ford’s market share of new fleet vehicle registrations has consistently been around 30%, outpacing GM and Stellantis in this segment.
The Ford Pro business, which includes sales of the Super Duty trucks, Transit vans, and Ranger midsize pickups, is a key driver of Ford’s success in the fleet market. Additionally, Ford is leveraging its fleet operations to drive electric vehicle sales and offer software and logistical services to customers.
Rivals like Stellantis and GM are also revamping their fleet and commercial businesses to compete with Ford. Stellantis is relaunching its “Ram Professional” unit with the goal of becoming the top seller of light-duty commercial vehicles, while GM has introduced “GM Envolve” to focus on fleet sales, digital telematics, and logistics.
The shift towards electric vehicles in the fleet market is gaining momentum, with automakers like GM highlighting their EV commercial business, BrightDrop. Ford, on the other hand, has announced plans to electrify its Super Duty trucks, offering customers a choice of powertrains to meet their needs.
In conclusion, the 2023 Ford Super Duty F-350 Limited represents the future of fleet sales in the automotive industry. With Ford leading the charge in profitability and innovation, competitors are following suit to capitalize on the growing demand for fleet vehicles and electric options. The landscape of fleet sales is evolving, and Ford is at the forefront of this transformation.
