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The 2021 Bronco Will Not Only Be Very Profitable, But Also Immensely Important For Ford and the Automotive Industry In General

The 2021 Bronco Will Not Only Be Very Profitable, But Also Immensely Important For Ford and the Automotive Industry In General

The Ford Motor Company is currently the fourth biggest car manufacturer globally and the biggest automotive company in America. With around 5.4 million units sold worldwide in 2019, Ford is firmly positioned at the top of the industry, which is the spot this company retained for over 100 years. Not that long ago, General Motors was the undisputed king of the global car industry; however, after the financial crisis of 2008 and the notorious government bailout program, GM is now in fifth place. Even though the crisis hit Ford the same as any other company back then, the Dearborn manufacturer never asked for  government money and managed to survive "Carmageddon" on its own.

Yes, these are challenging times for the automotive industry in general -- not just because of the 2020 coronavirus pandemic, but because the industry is changing so fast, and manufacturers are having a hard time keeping up with car buyer's tastes, preferences, and new trends.

Among all of the world's top car companies, Ford has managed to display an amazing level of adaptivity and forward-thinking. Not that long ago, Ford was selling trucks, desperately outdated Crown Victoria sedans, and body-on-frame Explorers. In just a few years, FoMoCo managed to completely change its portfolio and image by introducing new models, designs, and innovative technology.


First, Ford introduced a lineup of modern, downsized, and fuel-efficient engines that comprise the EcoBoost family and was one of the first companies to go that route. Second, it took a big gamble with the all-aluminum F-150 model, which revolutionized the full-size truck market. Third, it sold several subsidiary companies and killed off the Mercury brand, which helped release dead weight and allowed it to concentrate on the future. Fourth, while it's a controversial decision to discontinue all non-SUV and truck models geared toward the American market, Ford is showing its dedication to profitable car segments, a process facilitated by listening to the car-buying public.

An essential aspect of Ford's transformation lies in concentrating on its heritage and the models that made this company great. Undoubtedly, cars like the Ford Mustang, Focus RS, Shelby, and GT all captivated the public imagination, but the most exciting project of all is the new 2021 Ford Bronco.

This model embodies a strong message Ford is sending to its customers. The new Bronco is a thoroughly modern vehicle, but is unmistakably inspired by its classic counterpart from the '60s. It's entirely new, yet remarkably similar to the vision of the Bronco we have in our collective consciousness. It's filled with the latest technology, but at the same time, it's decidedly very old-school in its approach. In short, the 2021 Bronco is a game-changer and one of the most essential models Ford has introduced in a long time.


We're happy to report that Ford's gamble has paid off big time, as more than  230,000 people have reserved their 2021 Bronco. The last time Ford had such an enormous hit on their hands was in April of 1964, when the original Ford Mustang was introduced. Interestingly, there are a lot of similarities between these two cars. Both of them are affordable, fun, beautifully styled, and skillfully designed. Both caught competitors completely off guard, and both profoundly changed the industry. Ford cleverly introduced 2021 Bronco in two flavors – the standard and off-road dedicated Bronco and the slightly softer and family-oriented Bronco Sport, built on Ranger platform.

Even though the Bronco Sport is less imposing than the retro-futuristic Bronco, customers have responded enthusiastically, proving that Ford's idea was a sound one. The regular Bronco is geared towards people looking for off-road thrills and extreme all-terrain performance; the Bronco Sport for everyday commuting, with perhaps some camping trips on the weekend.


Further, in a world of soft SUVs, front-wheel drivetrains, and buyers looking for a smooth ride from their SUVs, Ford took a decidedly different approach. It offered the rugged, tough, macho, immensely capable, no excuse, off-road legend in an uncompromising form and customers went wild. Kudos to Ford's market research department for realizing that the presence of so many pseudo off-roaders means that there's plenty of demand for a proper and honest off-road vehicle that can actually go anywhere, not just look good for a photoshoot.


But let's look at the numbers and predictions regarding the 2021 Ford Bronco. While the 230,000 buyers who ordered their Bronco or Bronco Sport makes for an impressive-sounding number, it's still just 4% of Ford's global production output. At the moment, Ford's truck division is claiming 46% of domestic sales, making 2021 Bronco predicted production looks small by comparison.

However, in order to fully understand the impact of this model, you have to consider that the Bronco production cycle is just beginning and that those 230,000 customers are only pre-order buyers -- once the new Bronco's production is at full capacity, those sales numbers will be much higher. That means that Bronco will likely raise Ford's annual production significantly, increasing its market share in the process.  


Every car market analyst knows that it's vital for a car company to be dominant in one market segment, no matter how small or big it is. At the moment, there are only a couple of true off-road SUVs being offered. There's the Jeep Wrangler -- the Bronco's archenemy -- the Land Rover Defender, which is not as good but very expensive, and the Toyota 4Runner, which is capable but totally outdated. Really, apart from the Wrangler, Bronco doesn't have any real competitors. Just remember that Chevrolet Blazer is a strange-looking, soft SUV without any real off-road capacities. What a missed opportunity for GM.

This means that in 2021 Bronco will conquer this market segment, ensuring strong sales for years. The result will be not just financial gain, which will keep the company readily afloat, but also a more significant market share and an influx of new customers who had never considered owning a Ford before.

Since Ford has 54% retention, it's a safe bet that first-time Bronco buyers will continue buying Ford products in the future. At the moment, the pre-order breakdown shows that the most popular are the top three trim levels are also the most expensive. This means that Ford will enjoy a substantial margin on every 2021 Bronco or Bronco Sport sold and that Bronco customers are likely to spend more on their cars and aftermarket parts and components. The higher price point also means that the company's reputation is getting stronger and that it's reaching customers who previously had likely never considered buying a Ford.


The conclusion is simple; the 2021 Bronco is much more than just a cash cow for Ford. Sure, it will provide the company with steady earnings for years to come, but it will do much more than to keep shareholders happy. The 2021 Bronco and Bronco Sport have revolutionized the segment while returning the SUV to its off-road roots. This model will introduce Ford's products to a much wider audience and continue its legacy, which was started 55 years ago. It's safe to say that Bronco will change the industry in much the same way as the Mustang did back in the early '60s. This means that the 2021 Bronco is the newest Ford legend and a guarantee of Ford's bright future as a company.  

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