UBS Sees Ford F-150 Gaining Market Share

Truck buyers are anxious to purchase the forthcoming Ford Motor Co. (F) F-150 made of aluminum, and demand could drive a push for market share in the profit-laden segment for the Dearborn, Mich.-based auto maker, said UBS Securities analyst Colin Langan in a note to investors on Wednesday.

Mr. Langan raised his 2015 profit forecast for Ford to $2.30 a share from $2.20 a share, after conducting a survey of 800 current pickup truck owners. Ford shares rose 1% to $17.72 in morning trading.

The survey found that 52% of people canvassed who planned to buy a truck in the next 12 months were extremely likely to purchase the F-150, which is due out later this year and another 30% were somewhat likely.

Even current owners of General Motors Co. and Chrysler Group LLC trucks, typically very loyal to their own brands, showed strong interest in buying the aluminum-bodied truck that promises better fuel economy and weighs 700 pounds less than the current F-150, which already is the best-selling vehicle in the U.S.

"Our survey results increase our confidence in the success of the critical F-150 launch, which should drive significant (year-over-year) profit gains in North America and possibly longer term," he said in a note to investors.

Truck owners didn't appear to be concerned about the cost of repairing or servicing the aluminum truck. Of people who wouldn't consider the new F-150, only 5% said the repair costs were a concern. The biggest reason: " I don't like Ford trucks" at 39% and that was followed by: "I don't need a full-size truck" at 24%.

The results of the survey should be comforting to Ford, which is taking a risk by building its top-selling and most profitable model out of aluminum. The lightweight metal is more expensive than steel and could eat into the profitability of its truck.

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