The negative impact of the coronavirus on the economy cast doubt on Ford’s (NYSE:F) survival. But Ford is 117 years and will live for 100 years more if it keeps innovating its product. The Bronco launch is another great release that consumers will want.
Ford launched the Bronco family online on July 14. The impressive launch re-affirms the company put its advertising dollars to work well. Discontinuing ad spend on Facebook, Twitter, and Instagram will prove a smart move. Investors should expect at least tens of thousands of pre-orders. For just $100, consumers may reserve a two- or four-door model. It also launched a smaller sport model.
Ford Bronco is targeting an underserved, off-road market that may lift the company from losses. It is targeting Fiat’s (NYSE:FCAU) Jeep Wrangler market. And at just $29,995 for the two-door model, demand should easily exceed supply. After its launch, Ford’s order bank site crashed from being overloaded with millions visiting.
Ford has plenty of headwinds to address. Sales in Europe fell 51.4% in Q2 but it held its 7.1% market share. There, Ford Puma and Kuga will slow the sales decline. And in 2021, Bronco, Mach-E, and Explorer should revitalize sales.
Disclosure: the author owns shares of Ford.
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