Pickup a Ford Motor Company (NYSE:F) CNG F-150 pickup by 2013-end
Later this year, Ford Motor Company (NYSE:F) will start selling an F-150 pickup truck. This version has been modified and it will run on Compressed Natural Gas or CNG. There is a growing demand for this type of a vehicle amongst commercial fleet buyers. Last year, the company sold 11,000 trucks that operate on natural gas.
This number was double of what Ford sold totally in 2009, 2010 and 2011. Up until now, F had not provided this option on the base F-150. The CNG option was being used exclusively on the transit connect delivery van and more heavy-duty models. Now that this new F-150 version has been launched, the company expects to sell around 150,000 vehicles in 2013.
The North American fleet-sales operations director for Ford, Kevin Koswick said that the company launched this particular vehicle because there was a massive demand for it. GM and Chrysler Group LLC already offer the CNG option on their ½ ton pickup trucks while Ford offers it on its heavy-duty vans and pickups.
Ford has had some heavy-duty clients for these heavy-duty vehicles. AT&T and Pioneer Energy Services are amongst its biggest clients. The company’s chief engineer for commercial trucks, Robert Stevens said that the market for these particular vehicles started only in 2009. This was when fracking and horizontal drilling was invented. It was at this point that there was a divergence of gasoline and natural gas costs.
There is a vast variation in natural gas prices and they can range from under $1 to almost $3/ gasoline-gallon equivalent. Customers are not transitioning from diesel and gasoline-powered vehicles to battery powered or natural gas fueled vehicles in a hurry. However, there has been a steady rise in demand for these vehicles. CNG is a much more financially-viable option for large vehicles.