The Ford Maverick Pickup Is Built to Last!

If you have not placed an order for a 2022 Maverick pickup yet, it is already too late.

The chip shortage has hit the automotive industry quite hard, as shared in the OM in the News post, Chip Shortage Puts the Brakes on Automakers. Other posts have featured how the industry has adapted. For example, Tesla makes its own chips, and Ford has switched to a build-to-order strategy. As it turns out, Ford has to put the brakes on this new order policy for the Ford Maverick. The popularity of the small pickup truck has exceeded expectations to such an extent that Ford stopped taking orders. To avoid the mistakes made with the now defunct Ranger, the company is taking steps to ensure the market success of the Maverick while boosting design and production efficiencies.

Video Spotlight: The All-New Ford Maverick in 3 Minutes | Ford (June 8, 2021, Ford Motor Company) 

This post is based on the CNN article, So Many People Want a Ford Maverick that Ford’s Stopped Taking Orders, by P. Valdes-Dapena, January 24, 2022, and the YouTube video in the Spotlight. Image source: Roman Korotkov / Shutterstock.

Discussion Questions:

1. Why is the Ford Maverick popular with consumers?

Guidance: It is a small truck with a low starting price ($20,000). At a time when used and new car prices keep going up, the reasonable price of the Maverick makes it especially attractive. Furthermore, sales of hybrid vehicles are increasing rapidly. The hybrid version of the Maverick is the least expensive truck, which is unusual given the higher prices charged for hybrid vehicles. The combination of low price and 40mpg in the city rating (see video) make the truck especially attractive to the younger and environmentally conscious markets.

2. What are the demand and capacity strategies used for the Ford Maverick? Do you foresee changes in the future?

Guidance: To balance supply and demand, Ford is presently using options aimed at influencing demand to match capacity. The Maverick has a low price and other attractive design features to ensure high demand. However, the truck is built-to-order, which means that the company will not take more orders than the capacity can handle. Because it is a new model, Ford is taking a conservative approach. The truck is built in only one manufacturing plant. If demand continues to increase, then the company will expand its production capacity, perhaps transitioning to a level or a chase demand strategy.

3. What design and manufacturing practices does Ford use to increase efficiency and therefore lower cost? Is the Maverick Built to Last?

Guidance: As mentioned in the article, much of the engineering is shared among three models: the Maverick, the Bronco Sport SUVs, and the Escape. The component commonality creates savings in terms of design time, bulk purchases from suppliers, and commonality of parts for repair. Further savings are achieved in manufacturing with the creation of product families. The Maverick is made in the same factory where the Bronco Sport is made, thereby generating savings in infrastructure and equipment. Furthermore, the sharing of design and manufacturing engineering results in training savings for assembly and installation. The sharing also enables attractive features in one vehicle to be “passed on” to other vehicles and ensure the longevity of the Maverick. In that sense, it is built to last!