Blog Posts
Aug 12, 2021
by Jay Traugott Industry News / 11 Comments
And these buyers are spending serious amounts of cash.
There's no question the 2021 Ford Bronco is one of the hottest new vehicles to arrive this year. Despite some delays (and a few quality issues), the off-road SUV is off to an incredible sales start. Not only that, but it's luring away drivers from rival brands.
Stated within Ford's July sales report was this interesting tidbit: "Over 70 percent of Ford Bronco orders are coming from outside Ford." That's very significant because the Blue Oval is not only selling them a Bronco but is bringing them into the Ford family as a whole. All told, 3,277 Broncos were sold last month, a fairly lackluster figure but that can be blamed on the semiconductor chip shortage and related supplier issues.
Still, that figure will undoubtedly increase and we're sure Jeep is paying very close attention. Another important stat is that Bronco and SUV buyers, in general, are loading up on the options. Ford says the average SUV transaction price in July reached a record $42,000 per vehicle. That's an impressive $6,200 more than July 2020. Bear in mind that number increased thanks, in part, to Bronco and Bronco Sport sales.
Speaking of which, the Bronco Sport is also proving to be a serious threat to Jeep. We reported earlier this summer that the smaller Bronco Sport is also stealing Jeep customers at impressive rates with around 63 percent of sales coming from outside the brand.
Again, most, but definitely not all, are coming from Jeep. In this case, it's the aging Cherokee and the smaller Compass. If it weren't for the auto industry's current troubled state, Bronco sales would definitely be significantly higher, something Ford is keenly aware of.
The two-punch knockout that is the Bronco and Bronco Sport will not only convince some customers from GM and Stellantis to jump ship but also a solid chunk from foreign rivals like Subaru. The goal of having dedicated Bronco showrooms alongside regular Ford stores is another stroke of marketing and brand identity genius that'll soon begin paying even greater dividends.
