Ford’s Pickup Revenue Tops Pepsi and Disney

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The total revenue generated by Ford in the sale of its pickups and vans rivals those of giant companies such as IBM and Boeing, and it is higher than those recorded by Pepsi and Disney.

Ford’s van business rakes in $72 billion in 2017

The US-based automaker was able to rake in $72 billion from the sale of its trucks and vans according to information released by the company over the past two weeks. The revenue generated from this area is higher than those recorded by some giant US companies including Intel Corp., Walt Disney Co., and PepsiCo Inc.,

The pickup and van business of Ford is now regarded as a crucial part of its recovery effort. The company is undergoing massive restructuring, and the recent data from the pickup business indicates that it will play a role in the recovery efforts.

Market experts believe that the rise of online shopping has increased the demand for pickup vehicles as they help deliver packages to doorsteps with ease. The impressive result achieved by Ford in this area has seen the world’s largest automaker, Volkswagen AG partner with them recently. The partnership will see them develop new models including the Transit vans.

Michelle Krebs, an analyst at Autotrader, stated that Ford has always been strong in the pickup segment. They are not particularly sexy or lucrative cars, but they bring in a lot of revenue. Ford has always believed in the business of pickup vans and emphasized it again during its earnings report on Wednesday.

The company recorded 2.4 million truck and van sales in 2017 and that led to $10 billion earnings before interest and taxes. The operating profit margin for the pickup van business was 14 percent, which is higher than the 4.4 percent Ford recorded for its entire auto operations last year.

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