No Shame

Ford Motor Co. offers no apologies for the weight increase — and accompanying cost hike — associated with the redesign and production of its flagship F-150 pickup.

The price tag on the F-150's improvements: $1,000 to $1,500.

That concerns John Casesa of Merrill Lynch, who concludes in a report: “The changeover to the 2004 model will cost Ford about $0.30 in EPS (earnings per share) with marginal recovery in 2004 due to higher costs per unit.”

But as Ford rolls out its new truck for the media at its Kingman, AZ, proving grounds, President and Chief Operating Officer Nick Scheele displays confidence.

“We're not ashamed of the cost that we put in. We're proud of the cost that we put in,” Scheele tells Ward's. “We think it will drive revenues up.”

Ford claims a direct correlation between the alleged excess and added value, saying better interiors, creature comforts and noise reduction offset the hike.

Five trim levels covering an expected sticker range from $18,000 to $38,000 distinguish the F-150 from its competitors, Ford says. Official pricing will be announced July 1.

Ford says a version of its existing 4.2L OHV V-6 will be the base powerplant for the next-generation F-150.