Ford wants more customers to customize vehicles to boost profits as it eyes 'Nike shoe drop' moments - CNBC

What the report says

CNBC reported that Ford Motor is expanding its accessories, parts and customization business as it looks for higher-margin growth and a larger share of the U.S. automotive aftermarket, valued in the report at about $53 billion. At an event at Michigan International Speedway in Brooklyn, Michigan, Matt Simpson, executive director of Ford Customization, said the company is increasing investment in aftermarket offerings and wants some releases to feel like limited “Nike shoe drop” moments.

The effort includes more exterior treatments, wraps, performance components and factory-backed customization packages through Ford Custom Garage, a program launched last year. CNBC said the program’s first “vehicle drop” took place Monday with the Bronco Desert Rising package, a desert sunrise-themed version of the SUV. Ford plans to make 1,000 of the limited-edition Broncos, with a $13,695 package that brings the vehicle price to $57,350.

Other Ford Custom Garage packages can cost several thousand dollars, CNBC reported, with some Mustang performance packages reaching roughly $16,000 to $18,000 and a special F-150 performance version approaching $27,000. Ford says 46% of its new U.S. vehicle buyers customize their vehicles in some way, led by Bronco customers, followed by Mustang and pickup buyers.

The strategy matters because automakers are seeking revenue beyond the initial vehicle sale, including software, service, parts and accessories. CNBC noted that Ford is targeting 8% annual growth through the end of the decade in a $15 billion high-margin software and physical services business that includes customization. Ford also says factory-installed options can be covered by the new-vehicle warranty and financed through the purchase or lease, features that may make customization more attractive to buyers and dealers.