Ford has announced the new F-Series Super Duty vehicles

DETROIT – Ford Motor Co. is redesigning a critical product lineup, relying on new software and connected data metrics to boost profits in its commercial vehicle business.

The Detroit automaker on Tuesday unveiled the 2023 F-Series Super Duty trucks, vehicles ranging from large pickups to commercial trucks and chassis cabs for emergency response, towing and plowing, and construction or utility jobs.

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The vehicles — part of Ford’s best-selling F-Series truck lineup — are high-margin, key to retaining frequent flyer customers and a key part of Ford’s plans to grow its business..

“These are very important. Super Duty is a revenue stream for Southwest Airlines, Marriott or Nordstrom. It’s a big part of the business,” Ford Pro CEO Ted Kanis told CNBC. “And now we bring them into the digital age.”

Kanis declined to disclose revenue for the Ford Super Duty lineup, but Southwest, Marriott and Nordstrom recently reported annual revenue between $14 billion and $16 billion. Ford reports more than $136 billion in total revenue by 2021.

Super Duty trucks have more than 50% market share in utility, mining, construction and emergency response vehicles, Ford said, citing S&P Global Mobility data.

The designs of the new trucks are particularly different on the exterior, featuring redesigned C-clamp headlamps and a larger grille. But the most important changes for Ford may not be visible to the eye, including new powertrains or vehicle brains. The upgrades will give Ford the ability to introduce new software, data telematics and fleet management tools, Kanis said.

The software tools help businesses track maintenance needs, vehicle locations, driver behavior, wasted idle time and other metrics. Fleet operators can set operating hours that prevent the vehicles from starting outside of permitted times.

Such services are seen as major opportunities for Ford to generate recurring revenue throughout the life cycles of its vehicles – which automakers like Ford have been unable to achieve beyond routine maintenance and servicing through franchised dealers.

Ford Pro’s mission is to act as a one-stop shop for vehicles as well as the software management companies use to track them, Kanis said, becoming a domain for Ford’s third-party companies for subscription businesses and additional recurring revenue opportunities.

The connected features are powered by 5G connectivity – the first to be adopted in the US – using AT&T service and a Qualcomm modem.

“We are focused on increasing productivity,” said Raj Sarkar, General Manager, Product Marketing and Strategy, Ford Pro, in a media statement.

Ford Pro is one of three key areas of focus for the company under CEO Jim Farley’s Ford+ innovation plan, which targets growth and value creation across all three segments in the coming years.

The Super Duty trucks feature new interiors as well as other towing and towing upgrades – both key for owners of larger trucks. New features include Trailer Navigation, which plans safe routes given the trailer’s dimensions and weight to avoid potential problems on low bridges and tight turns, and a second backup camera that can be used when the truck’s tailgate is closed. Down.

Although Ford has poured billions into electric vehicles, the new trucks are powered by one of four V-8 gasoline or diesel engines. Larger cars like the Ford Super Duty are expected to continue to be powered by traditional engines.

The 2023 F-Series Super Duty is built at Ford assembly plants in Kentucky and Ohio. Pricing is expected to begin in early 2023. The starting price of the vehicles currently ranges from $40,000 to nearly $100,000.

Ford unveiled its new Super-Duty lineup a day after cross-town rival General Motors announced the new 2024 Chevrolet Heavy-Duty pickup, which is expected to go into production by the middle of next year.