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Ford foregoes price increase on new F-150 in effort to maintain market share

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By MARY CONNELLY | Automotive News

When the redesigned 2004 Ford F-150 comes out this summer, the price will be comparable to the current model, said Steve Lyons, Ford Division president.

Ford's 2004 pickup costs more to build than the current truck. But the company will forego a sizable price increase, Lyons said.

"This is the most important vehicle in our company. We can't afford to say, 'Let's try to make this something that is priced out of the market,'" Lyons said. "We haven't finalized all that, but it will be pretty close (to the existing price)."

General Motors is fueling the industry's incentive wars, maintaining price pressure on Ford. At the same time, Wall Street is keeping a close eye on Ford's struggle to hold onto its pickup market share while shaving costs from the new model.

To maintain volume, Ford will build 75,000 to 100,000 units of the existing F-150 and sell them side by side with the new model for about 12 months, Lyons said. The will let Ford phase in the F-150 build at three plants, he said.

Ford will build the first 2004 F-150 at its Norfolk, Va., assembly plant on June 16, the company's 100th anniversary, Lyons said.

Ford is looking for F-150 cost savings in three main areas, said Phil Martens, Ford vice president of vehicle programs and processes. Those areas are: advanced technologies, the manufacturing build and the vehicle design, including materials.

Martens said: "We are not taking costs out of any areas visible to the customer, or safety or any functional attributes."
 

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