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Ford F-150 Supercrew investigated after complaints of fires linked to seat belts

Reuters  /  August 7, 2018

The nation's top traffic safety regulator is investigating complaints of fire during crashes in some Ford Motor Co. F-150 Supercrew pickups that have been linked to a seat belt component.

NHTSA said there were five complaints alleging fires following the activation of seat-belt pretensioners made by ZF TRW or Takata Corp. during a crash involving the vehicles.

Pretensioners tighten up any slack in the seat belt webbing in the event of a crash and work in tandem with air bags.

While there were no injuries or fatalities, three of the vehicles were completely destroyed by the fire, NHTSA said.

An estimated 1.4 million vehicles made between 2015 and 2018 could be affected in the investigation, the agency said.

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Ford introduces its first 48-volt vehicle.....in China, with Cargo/Transit partner Jiangling

Michael Martinez, Automotive News  /  August 8, 2018

Ford Motor Co. hopes a new midsize crossover in China will help it stem mounting losses* in the world's largest vehicle market.

The automaker early next year will introduce the Territory, which it bills as an affordable [150,000 Yuan/US$21,990.27] utility that slots between the EcoSport and Kuga. It was developed with its joint-venture partner, Jiangling Motors Corp.

The vehicle comes with either a gasoline engine, a 48-volt mild hybrid system or a plug-in hybrid powertrain. Available technology includes an infotainment system with Mandarin voice-command and the automaker's Co-Pilot360 suite of standard driver-assist features.

"It's a very unique product for China," Jim Farley, Ford's president of global markets, told Automotive News.

Ford is targeting entry-level customers outside of China's biggest cities. It says midsize utility sales in that country grew 38 percent from 2012 to 2016.

"Territory is a key proof point for how we will grow in China," Ford China CEO Peter Fleet said in a statement. "We brought Territory to market with speed, high quality and cost efficiency. It will be affordable for young families and new buyers across China, not just the coastal mega-cities. And the technology will delight customers."

Ford is preparing a product blitz for China as sales and profits continue to fall there. It plans to launch more than 50 new vehicles there by 2025.

The automaker said its sales in China fell 25 percent in the first half of 2018. Its China operations lost $483 million in the second quarter before taxes, versus a $23 million profit there a year earlier.

"It's going to take us a while to get out of that issue," CFO Bob Shanks said last month.

Farley last month said Ford had "serious shortfalls" in its go-to-market strategy in China and that dealer profitability had been hurt by improper maintenance of the product portfolio.

He said Ford has begun to address dealer profitability in the region and that, by the end of next year, 60 percent of its products there will be new or updated.

*  (CNBC, August 8, 2018) Ford's business in China has been faltering since last year. Its vehicle sales tumbled 25 percent in the first half of 2018 from the same period a year ago to 400,443 vehicles, which led to a second-quarter pre-tax loss of $483 million for its China operations.

According to consultancy LMC Automotive, it was Fords biggest first-half percentage decline in sales volume since starting operations in China in 2001.

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Desperate Times: New Ford Territory SUV For China Is Just A Rebadged JMC

Car News China  /  August 8, 2018

So what do we have here? This is an SUV called the Ford Territory. Ford says it is new, especially developed for China and all. That is not totally true. It is a new Ford, but not a new car.

The Territory is based on the Yusheng S330, a cheap local SUV that sells for just 80.000 yuan or $7300.

Yusheng is a brand under Jiangling Motors Corporation (JMC), one of Ford’s two joint venture partners in China. This joint venture will also make the Territory. Morphing the S330 into the Territory was easy: slap a new front on, change the dash a bit, fancy wheels, Ford badges, and done!

Why does Ford do this? Because they are desperate. Ford sales in China are slow and not growing. The company doesn’t have anything good in the pipeline. But hey, guess what? Their joint venture partner had just the kind of sweet compact SUV that it needed. So Ford grabbed it by the grille.

Ford has not announced anything on engines yet, but we bet the Territory will use the same engine as the S330: a 1.5 turbo with 163 hp. We will have a good look at the ‘new’ Ford on the Chengdu Auto Show in September.

Ford also states that the Territory is aimed at China’s second and third tier cities. Good idea. But the Yusheng S300 is aimed at exactly the same target area.

I am very curious what is next. JMC has more nice SUVs in their lineup, including some electric stuff that Ford also doesn’t have. And of course JMC owns the Landwind brand. What about a Ford based on this?

The world upside down. In the past, Chinese joint venture partners were begging their western partners for old platforms to base some of their own cars on. Nowadays, the western partners crave for the Chinese platforms. Also see Volkswagen with their weird SOL EX20.

And Finally: this Ford Territory should not be confused with the Australian Ford with the same name. These Territories have nothing in common.

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Ford 'evolving' Mulally's One Ford plan with move to 5 modular platforms

Michael Martinez, Automotive News  /  August 8, 2018

DETROIT -- Ford Motor Co. avoided bankruptcy and survived the Great Recession in part because former CEO Alan Mulally's One Ford plan reduced costs and used common global parts. But the company's current leadership says that's no longer enough.

Ford is moving beyond what Mulally and his successor, Mark Fields, did as the automaker looks to slash $25.5 billion in costs over the next five years. While One Ford helped whittle the automaker's global architectures from 30 to nine, Ford is now reducing that number even more, transitioning to just five modular vehicle platforms in the coming years.

"This is not saying One Ford was wrong. This is building on the strategy of One Ford and evolving from it," Hau Thai-Tang, Ford's head of product development and purchasing, said Wednesday during a presentation to the 2018 J.P. Morgan Auto Conference in New York.

While One Ford helped the company achieve global scale, Thai-Tang said it didn't get the desired scale on the regional or local level. Moving to five platforms will help save costs and boost the efficiency of Ford's supply base, he said. Thai-Tang said up to 70 percent of a vehicle's value can be managed through a modular approach.

Moving forward, each of the automaker's vehicles will be on one of five platforms: rear-wheel-drive/all-wheel-drive body-on-frame; front-wheel-drive/awd unibody; commercial van unibody; rwd/awd unibody; and a unibody platform for battery-electric vehicles.

Ford seeks to save about $7 billion in engineering and product-development costs while reducing by 20 percent the amount of time it takes to bring a vehicle from the sketch board to the showroom.

The automaker believes it can make its engineering 20 to 40 percent more efficient through these new processes.

Ford is shifting its product portfolio away from most cars and more toward light trucks as it tries to produce the industry's freshest North American lineup by 2020.

The automaker has said it will phase out traditional sedans in North America. Thai-Tang said they will be replaced by new vehicles with different body styles in the same entry-level price range.

Ford will focus on "bold, emotive designs" that fit its strengths in the pickup, commercial van and utility segments, Thai-Tang said.

He added: "We'll reinvest and allocate capital in those areas."

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Ford seeks to save about $7 billion in engineering and product-development costs while reducing by 20 percent the amount of time it takes to bring a vehicle from the sketch board to the showroom

Uh-oh.........I learned you can't get more milk out of a cow by feeding it less. 

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"Moving forward, each of the automaker's vehicles will be on one of five platforms: rear-wheel-drive/all-wheel-drive body-on-frame; front-wheel-drive/awd unibody; commercial van unibody; rwd/awd unibody; and a unibody platform for battery-electric vehicles."

With only one BOF platform left and it'll be dedicated to the F series, that means the yet to be introduced US/Canada Ranger and Bronco are already end of lifed. The surviving front/all wheel drive unibody car will probably be a 1700 mm. wide car/SUV/"panel delivery" variant to replace the Fiesta, etc.. Looks like the only serious van left will be the full size Transit. The RWD/AWD unibody will probably be future 2 and 4 door Mustangs, Explorers, and the next Ranger. etc.. And an electric car platform? Given the slow sales of the Focus electric, a total waste of billions!

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Sure sounds like that, doesn't it?  My question is does this policy include commercial vehicles as well?  If so the E series and 650/750 are goners too.

My guess is the Ranger, Bronco, and F-150 will be built off the one BOF platform, and they are not including commercial vehicles. 

 

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9 hours ago, Maxidyne said:

Given the auto sector inexperience of the latest wave of top execs they may not even know of anything bigger than the F350 and Transit.

Hah! Bill Ford hit a home run when he hired Mulally.  He must have been drinking too much wine with his silicon Valley pals when he picked furniture man.

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Ford's China sales fall 32% July on lack of fresh models

Reuters  /  August 10, 2018

BEIJING -- Ford Motor Co. on Friday said its sales in China fell 32 percent in July from a year earlier to 57,662 vehicles, as the U.S. carmaker continued to suffer from a lack of fresh models in the world's largest auto market.

The latest figure followed a 38 percent tumble in June, leading to the automaker's worst-ever first-half year in China since starting operations in the country in 2001.

For January-July, Ford's China sales dropped 26 percent versus the same period a year earlier to 458,105 vehicles.

On Wednesday, Ford said it would launch an "entry-level" crossover early next year in China, developed jointly with local partner Jiangling Motors Corp., as part of efforts to revive its slumping business.

The Territory is one of 50 new or redesigned vehicles Ford plans to launch in China from this year through 2025. Those vehicles include a redesigned Focus scheduled for launch later this year.

Ford officials have said the automaker's business in China will remain pressured this year by a dearth of new or significantly redesigned models in its product lineup, a situation they indicated could last through the end of 2018 or early 2019.

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Ford prices 2019 US market Ranger from $25,395

Michael Martinez, Automotive News  /  August 14, 2018

Ford is pricing the revived Ford Ranger about the same as the segment-leading Toyota Tacoma as it prepares to re-enter the midsize pickup market for the first time in about eight years.

The 2019 Ranger, which goes on sale early next year, will start at $25,395 — including shipping — and will top out at more than $40,000. That's about the same as the Tacoma, which starts at $25,400 for 2018 models, but more than the Chevrolet Colorado and GMC Canyon. Pricing on the 2017 Colorado starts at $20,995, while the 2017 Canyon starts at $22,095.

Ford said Tuesday it has opened dealer order banks and consumers can begin preordering the truck.

The Ranger will come in three trim levels: XL, XLT and Lariat. Ford will sell two-door SuperCab and four-door SuperCrew configurations and offer both four-wheel drive and two-wheel drive for each configuration.

The base XL 4x2 SuperCab with a 6-foot box will be priced from $25,395 with shipping, Ford said. The XL 4x2 SuperCrew with a 5-foot box starts at $27,615.

The most expensive Ranger, a Lariat 4x4 SuperCrew, will be priced at $39,480. That figure can top $40,000 if buyers choose the FX4 off-road package, which is a $1,295 option.

The FX4 package is offered on all 4wd models. It comes with the terrain-management system first offered on the F-150 Raptor that features four drive modes: normal, grass/gravel/snow, mud/ruts and sand. The package also includes a new "trail control," which acts as an off-road cruise control by accelerating or braking to maintain a set speed while traversing gravel or mountain trails. It's an extension of the automaker's hill-descent control, which controls braking on steep grades. The FX4 package will come with standard automatic emergency braking.

Ford sells the Ranger in dozens of markets overseas. The 2019 Ranger has been specifically engineered for North America [???], company officials say. It will come with only one engine: a 2.3-liter [gasoline] EcoBoost mated to a 10-speed automatic transmission.

The latest Ranger has a mostly steel body, axles made by Dana Inc., which supplies the Jeep Wrangler, and an exterior design similar to its larger F-series counterparts. During development, it went through the same torture tests as the F-150. It will include a number of tech features, such as a standard 4G-connected Wi-Fi hot spot, FordPass Connect and pre-collision assist technology.

Ford stopped selling the Ranger in the U.S. in 2011. It was regularly among the segment's top sellers, including No. 1 as recently as 2004. Ranger sales routinely totaled more than 300,000 a year in the 1990s before fading in the early 2000s.

U.S. sales of midsize pickups have climbed 18 percent this year after rising less than 1 percent in 2017.

Photo gallery - http://www.autonews.com/apps/pbcs.dll/gallery?Site=CA&Date=20180114&Category=DETROIT_AUTO_SHOW&ArtNo=114009999&Ref=PH&Profile=1658

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Ford's grand vision for Detroit train station to cost $740 million

David Shepardson, Reuters  /  August 14, 2018

WASHINGTON -- Ford Motor Co. disclosed Tuesday it will spend $740 million on a project to revamp Michigan Central Station, Detroit's historic, dilapidated former rail station, as well as other neighborhood sites.

Ford aims to turn the building into a campus of offices for up to 5,000 tech workers and software engineers focused on self-driving vehicles and ancillary technologies and services.

Ford announced the project in June, but had not previously disclosed costs until a community meeting on Tuesday.

The company said Tuesday in a statement it is "working with federal, state and local economic development groups and officials, seeking at least $250 million in tax or other incentives to support the development of the five Corktown sites Ford has purchased."

Ford said total investment in the development of the train station and developing 45 acres of vacant land will cost approximately $740 million over the next four years.

The figure includes acquiring the buildings and land as well as rehabilitation costs "which takes into account the requirements of restoring a historic building such as the train station," the company said.

The automaker said the project costs do not require additional capital beyond what it previously committed as part of its overall 10-year campus plan in 2016.

The Detroit train station closed in 1988 and fell into disrepair, becoming a symbol of the decline of the "Motor City."

In the first half of the 20th century Detroit prospered and became America's fourth-largest city, its name synonymous with U.S. manufacturing prowess.

But a riot in the 1960s and the oil shocks of the 1970s heralded decades of manufacturing decline. By mid-2017, Detroit's population had fallen to 673,104, according to the U.S. Census Bureau, from a peak of 1.8 million in 1950.

In 2009 the Detroit City Council voted to tear the railway station building down, but it survived.

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Ford's blue sky CEO has investors treading water

Chris Bryant, Bloomberg  /  August 15, 2018

In a fractious call with analysts last month, during which Ford Motor Co.'s management were once again lambasted for their vagueness about planned restructuring measures, Chief Financial Officer Bob Shanks did make at least one revealing comment:

"We swim in the water with ankle weights, big ones…we want to get them off so that the real underlying strength of this company can come through."

He was referring, of course, to Ford's unprofitable international operations and a portfolio that's still too heavily skewed towards unpopular sedans -- factors that contributed to a shock profit warning.

But with Ford's shares falling by one quarter so far this year, investors must be wondering whether that's the extent of the automaker’s surplus baggage.

Two more potential problems – leadership and liquidity (namely, Ford's capacity to pay dividends) – have also come into sharp focus recently. Neither will be addressed in a hurry, and that’s partly because of the influence of the founding family.

Dividend questions

First, liquidity: Ford is committed to paying about $3 billion in dividends this year. In view of Ford’s rapidly deteriorating operating performance and the litany of longer-term challenges it faces, that’s probably too high. The 6.3 percent dividend yield -- a level that often indicates a payout cut is in the offing -- suggests plenty of investors think the same.

Not so long ago, some analysts were complaining Ford was too stingy with its cash. So what’s changed?

Outside the U.S., Ford isn’t generating returns that exceed its cost of capital. Including dividend and pension contributions, Ford's automotive unit consumed about $1 billion of cash last year and this year isn't shaping up any better. Management have, somewhat belatedly, announced a mammoth restructuring that’s set to cost about $7 billion in cash terms over the next four years or so. The company's annual capital expenditures bill is about $7.5 billion, plus it is also having to invest plenty in autonomous vehicle research. Suddenly, things look tight. 

True, Ford's balance sheet remains in decent-ish shape now -- the autos unit has about $9 billion of net cash. But a more sudden sales slowdown would cause this to bleed cash due to Ford’s negative working capital position. Already, cash flow is deteriorating, and Berenberg analyst Alexander Haissl says the company will have to cut the dividend by one-third from next year.

Hackett's management

That’s liquidity, what about leadership? 

Chairman Bill Ford made a good call when he hired Alan Mulally from Boeing to run crisis-hit Ford in 2006. Mulally’s experience of cost-cutting at a hugely complex manufacturer proved invaluable at the automaker, which, unlike rival General Motors, didn’t require a government bailout.

Hence, Ford watchers were probably reluctant to question the chairman’s decision last year to tap another outsider to run the company -- Jim Hackett, whose background is in office furniture. Ford described Hackett, who took up the helm in May 2017, as a "visionary." In other words, the sort of person needed to help the company make the leap to the autonomous and electric vehicle era. 

Hackett certainly isn’t to blame for the shortcomings in Ford's product lineup or China business, which pre-date his arrival, and he's had plenty of bad luck, too: Ford's very profitable U.S. truck operations were hit by a fire this year, the competitiveness of U.K. business is being upturned by Brexit, plus complying with Europe's tough new emissions rules is proving challenging.

However, Hackett's encounters with the financial community -- peppered with buzzwords but short on details -- have been nothing short of disastrous. Furthermore, the speed at which Carlos Tavares has turned around Peugeot (and now Opel/Vauxhall) has made Hackett's repeated pleas for patience feel pretty inadequate. An article this week in The Wall Street Journal exploring Hackett's cerebral/baffling leadership style hasn't helped his cause either.

Arguably, what Ford needs right now isn’t so much a visionary but someone who can also take swift, tough decisions. About half of the company's 200,000 workforce are in Ford's unprofitable overseas operations, which underscores the scale of the challenge.

His frustration boiling over, Morgan Stanley analyst Adam Jonas outright asked Hackett last month whether he still expected to be running the company when the company finally gets around to holding a now-delayed capital markets day. But having waxed lyrical about Hackett’s qualities so recently, Bill Ford is hardly likely to withdraw his support now.

Similarly, the chairman and his family aren’t likely supporters of a dividend cut. They control 40 percent of the voting rights thanks to a special class of stock, and depend on the lucrative payout. Shanks, the CFO, told Bloomberg on Tuesday the dividend isn’t at risk.

With Ford’s management treading water, its investors are left to hope that the company’s many ankle weights don't cause it to drown.

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2018 Ford Mustang Cobra Jet to cost $130,000

Michael Martinez, Automotive News  /  August 16, 2018

DETROIT -- Ford's 50th anniversary edition of its Mustang Cobra Jet drag racer -- billed at the automaker's fastest, most powerful racing Mustang yet -- will be priced at $130,000 when it goes on sale next year.

The car was unveiled Thursday in the Detroit suburb of Royal Oak as part of the lead-up to this weekend's anuual Woodward Dream Cruise.

The vehicle is powered by a special 5.2-liter V-8 engine paired with a 3.0-liter Whipple supercharger and can achieve a mid-8-second quarter-mile time, executives said. It is not street-legal.

"This has inspired generations of Mustang fans to create their own performance machines for the street," Eric Cin, global director, Ford Performance Parts, said in a statement.

Ford first launched the Cobra Jet in 1968 and revived it in 2008. From 2009 to 2016, it's offered the car every other year and has built 50 each time it's offered. It will build slightly more -- 68 -- this time around in honor of the 50th anniversary.

It will be available in two colors: Race Red or Oxford White. Executives declined to discuss horsepower or other performance figures.

The car is designed to be legal for National Hot Rod Association drag racing, along with several National Mustang Racers Association and National Muscle Car Association classes.

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Dang, Ford sure is "proud" of their stuff! Half again more than the price of FCA's street legal 9 second Challenger. Ford's new Ranger will be $4k more than the Chevy Colorado. In GT endurance racing the old Corvette is giving the half million dollar Ford GTs a run for their money. And with Ford abandoning cars, the next generation mid engine 'Vette will make the half million $$$ Ford GT obsolete, and with an entry price well under $100,000!

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Despite car cuts, Ford brand's portfolio to grow by 3 nameplates by 2023

Michael Martinez, Automotive News  /  August 16, 2018

DETROIT — The Ford brand's U.S. lineup will grow to 23 nameplates — three more than today — in the next five years, despite plans to stop selling sedans in the region, a top company executive said Thursday.

Ford Motor Co. product chief Hau Thai Tang said the brand would add nine nameplates — seven of which will be pickups and utilities — through 2023. They will fill holes left by eliminating the Fiesta, Taurus, Fusion, C-Max, Flex and all but a wagon version of the Focus, and expand the brand into several new segments, resulting in a net gain of three nameplates for the brand.

The product overhaul comes as Ford works to decrease its average showroom age from 5.7 years today to 3.3 by 2020. It hopes to have the freshest showroom in the industry by that time.

"It's like selling fish and vegetables," Thai-Tang said at a media event tied to this weekend's 2018 Woodward Dream Cruise in suburban Detroit. "The fresher it is, the better they do."

Ford executives have vowed to replace the sedans they're phasing out of North America with vehicles employing different body styles. The brand also is adding two off-road utilities in the coming years: the Bronco and a smaller off-road crossover that has yet to be named.

Other new nameplates include the Ranger midsize pickup, a long-range battery-electric crossover inspired by the Mustang, and a commercial autonomous vehicle. Ford also is reportedly considering bringing a compact pickup to market by 2022.

As it redesigns many of its vehicles, Ford will place them on one of five modular platforms: rear-wheel-drive/all-wheel-drive body-on-frame; front-wheel-drive/awd unibody; commercial van unibody; rwd/awd unibody; and a unibody platform for battery-electric vehicles. All five will be able to accommodate hybrid vehicles.

"This is a profound shift in terms of how Ford is thinking about the business, and how we're working," Thai-Tang said Thursday.

Reiterating a presentation to the 2018 J.P. Morgan Auto Conference in New York last week, Thai-Tang said the flexible architectures will help Ford cut costs and boost the efficiency of its supply base. He said Ford can unlock 70 percent of the value content of a vehicle by moving to the modular approach.

Thai-Tang and other Ford executives are attempting to offer more clarity on the company's plans amid increasing pressure from Wall Street to better detail CEO Jim Hackett's turnaround efforts, which will include an $11 billion restructuring.

"We believe," Thai-Tang said. "I think we have to do a good job telling the story and the rationale, and giving [analysts and investors] tangible proof points. That's the challenge for all of us."

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Ford produces milestone 500,000 Rangers in South Africa

Engineering News  /  August 14, 2018

Ford Motor Company of Southern Africa’s (FMCSA’s) Silverton assembly plant, in Pretoria, has produced its 500 000th Ford Ranger.

“The current Ford Ranger has been a remarkable success story for FMCSA, and we are delighted to have reached the 500 000 mark for this vehicle programme,” Ford Middle East and Africa Operations VP Ockert Berry said on Tuesday.

The Ranger has been one of the top-selling vehicles in the light commercial vehicle (LCV) segment in South Africa, as well as in the overall sales charts. Its highest domestic sales figure of 3,333 units was achieved in July 2017.

In terms of export volumes, 8,062 units were shipped from Silverton to customers in Europe, the Middle East and Africa in April this year.

Combined local and export volumes for the month topped out at a record-breaking 10,434 units, making the Ranger the highest volume LCV model produced in South Africa.

The half-millionth unit – a Wildtrak 3.2 Double Cab – was painted in the model's distinctive Pride Orange, and signifies the Ranger's legacy since production started in 2011, Berry added.

“Early next year, we are set to launch the Ford Ranger Raptor, which will add a new chapter to the Ranger's legacy in South Africa and across the region,” Berry highlighted.

Ford invested over R3-billion in its South African operations for the launch of the Ranger in 2011 to cater for the South African market and exports to over 148 markets in Europe, the Middle East and Africa.

This was followed with a further R3-billion investment in 2017 to expand production capacity to meet the growing worldwide demand for the Ranger, Berry added.

“This reaffirms our role as an integral part of Ford's global manufacturing network with world-class operations at the Silverton assembly plant and at the Struandale engine plant, in Port Elizabeth, which produces the Duratorq TDCi engines for the Ranger.”

The Ranger has introduced a range of safety, comfort and convenience features, including three generations of Ford’s SYNC infotainment system, as well as advanced driver assistance technologies, such as Adaptive Cruise Control and Lane Keeping System, which are standard on the Ranger Wildtrak.

The performance delivered by its 2.2L and 3.2L Duratorq TDCi diesel engines has equally contributed to its popularity, while the introduction of sophisticated automatic transmissions across a range of models and engine capacities has reshaped the buying patterns of customers in the pick-up segment, noted Berry.

Traditionally long model-cycles associated with the LCV segment have been reduced with the Ranger, as regular feature and equipment upgrades over the past seven years have ensured that Ford's pick-up range remains up to date.

“The Ranger received a comprehensive update in 2015 that saw the debut of more muscular styling, along with technology and feature enhancements that included SYNC3 and the subsequent addition of embedded navigation on high-spec models,” he said.

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