Ford Motor Co.
) has become the first truck manufacturer to offer a half-ton
pickup truck capable of running on both compressed natural gas
(CNG) and liquefied petroleum gas (LPG). The automaker has
started the production of the 2014 F-150 with a
factory-installed, gaseous-fuel prep package.
The optional prep package of Ford comprises hardened valves,
valve seats, pistons and rings. This allows the truck to run on
both CNG and LPG using separate fuel systems.
Ford F-150 comes with a 3.7-liter V6 engine, which in
combination with the bi-fuel package, gives it the capacity to
cover up to 750 miles on the combined tanks of gasoline and CNG.
The truck has an EPA-estimated rating of 23 mpg on the highway
and a combined rating of 19 mpg.
Ford is manufacturing the CNG-capable F-150 on the request of
its business and fleet customers. The fuel has the advantage of
low price as well as low emissions. CNG has an average price of
$2.10 per gallon of gasoline equivalent in the U.S., compared
with $3.29 per gallon for unleaded regular fuel. Moreover, CNG
leads to 30% lower greenhouse gas emissions, according to the
U.S. Environmental Protection Agency.
Further, almost 20 states are planning tax incentives and
rebates for CNG-converted vehicles, which will result in further
savings for fleet administrators.
Ford is planning to introduce 8 commercial vehicles with the
gaseous-prep option in other vehicles as well by summer. These
include Transit Connect van and wagon; Transit van, wagon,
cutaway and chassis cab; E-Series van, wagon, cutaway and
stripped chassis; F-Series Super Duty pickup and F-350 chassis
cab; F-Series Super Duty chassis cab (F-450, F-550); F-650
medium-duty truck; F53 and F59 stripped chassis; and 2014 F-150
light-duty pickup. This will be the largest batch of CNG-capable
vehicles offered by any full-line manufacturer.
Ford expects to sell over 15,000 CNG/LPG-prepped vehicles in
2013, up 25% from 2012. The automaker's clientele for
alternative-fuel vehicles includes telecommunication giant
), which bought 650 F-350 chassis cabs with the CNG-prep
Ford currently carries a Zacks Rank #1 (Strong Buy). Other
major automobile stocks worth considering are
General Motors Company
). While Daimler is a Zacks Rank #1 stock, General Motors carries
a Zacks Rank #2 (Buy).
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FORD MOTOR CO (F): Free Stock Analysis Report
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