Ford Expects the Expedition to quadruple Bronco Sales

09/03/96

Reuters has reported that Ford Motor Company expects 1997 Expedition sport utility vehicle sales to quadruple those of its Bronco. Expedition Brand Manager Bob Girard spoke at a debut of the Expedition in New York and said that Ford will discontinue its Bronco line this year and produce about 140,000 Expeditions for 1997.

Girard said Ford expects the expedition to cannibalize part of the company's market for its Explorer: "market research tells us that there will be some (cannibalization). We expect some (Explorer buyers) to move up to the Expedition, but we will also get some previous Jeep Cherokee and Grand Cherokee buyers to upgrade to Expedition."

According to Girard, however, the sport utility segment should continue to grow industry-wide, expanding from 1995's figure of 1.5 million sold to about 2 million vehicles sold in the year 2000. Ford thus expects the market for Expedition and Explorer to grow as the industry segment continues to enlarge, in spite of the fact that the Expedition is likely to take a bite out of the Explorer's customer-base.

Girard didn't comment on gross profits from either the Explorer or the Expedition, or development costs for the Expedition line. Analysts speculate that Ford may earn $12,000 in gross variable profits for each Expedition sold, allowing the company to earn back the estimated $1.3 billion it spent on Expedition development in less than a year.

The Expedition carries a base sticker price of $27,910 including destination and delivery charges. That price rings in below the $29,525 price on GM's four-door 1997 Chevrolet Tahoe. The higher series Expedition XLT 4X4 model is priced at $30,510, while the Eddie Bauer 4x4 model carries a price tag of $34,515.

The Expedition was built based on Ford's 1997 F-150 pickup truck, is larger than the compact Explorer, and offers a choice of two V-8 engines, more towing capacity, payload and fuel economy than its chief competitors, including Chevy Tahoe.

The Expedition also offers an optional third-row seat, for a maximum seating capacity of nine. The Expedition will be available for sale in dealers' showrooms on October 2.

Paul Dever -- The Auto Channel