Ranger Raptor embodies Ford strategy of high-margin, low-cost variants

The 2024 Ranger Raptor shows how Ford Motor Co. is working to maximize profits from its internal combustion business by offering high-margin derivatives that require little additional engineering.

CEO Jim Farley has said variants such as the Raptor generate margins that are 30 percent higher than the base model while sharing about 80 percent of the same parts. The 2024 Ranger Raptor — the third nameplate in the family of high-performance off-roaders — will start at $56,960 including shipping, 67 percent more than the base Ranger costs.

The growth of the Raptor subbrand comes as Ford also expands its Tremor line to the Maverick pickup, adds an Everglades model to the Bronco SUV and offers ST-Line trims on the Escape crossover. Such derivatives are key as Ford aims to keep profits rolling on its traditional Ford Blue business so it can fund its money-losing electric vehicle business unit, Model e.

"When you can get scale and engineering efficiencies through a lot of re-use of parts, you can really do a lot of things both from a business perspective and also from a customer perspective, making sure we're bringing them new and exciting products," John Emmert, Ford's general manager of North America trucks, told Automotive News. "A lot of our enthusiast products create a halo for the rest of the brand."

The Raptor line started as a skunkworks project on the 2010 F-150 that was well received by customers looking for off-road performance. Such buyers also exist in the midsize pickup segment, Ford says, creating an opportunity to expand the Ranger's customer base and differentiate itself from rival trucks. The 2024 Ranger will be the first in North America to offer a Raptor version.

"They're tapping into a great marketing ploy for extending the Ranger brand to new markets and new buyers," said Sam Fiorani, vice president of vehicle forecasting at AutoForecast Solutions. "It doesn't cost a lot, but it shows up in additional sales and definitely additional profits."

Ford's research found that about 70 percent of Ranger customers highly value performance vs. 60 percent of other midsize pickup owners.

"We've been very meticulously adding Raptor variants to key vehicles that can really support the essence and DNA of Raptor and what it means," Emmert said. "It's got a proven track record of performance. Ranger was just a natural fit."

The truck features a 3.0-liter EcoBoost V-6 engine, also found on the Bronco Raptor, that will generate 405 hp and 430 pound-feet of torque. It comes with a unique suspension and FOX live valve shocks found on other Raptors.

Emmert said he expects the Raptor to account for about 10 percent of overall Ranger sales. It's geared toward customers who want a higher degree of off-road capability but don't need a full-size truck.

"Each of our Raptor products serve their own niche and are optimized for different fits," Emmert said. "It's tailored to that specific use-case for people who want to buy a midsize pickup."

The vehicle will be particularly advantageous to Ford's bottom line because of its global scale.

Ford builds the Ranger in five plants around the world and sells it in 180 global markets. The Ranger Raptor is built in two plants and sold in the majority of those 180 markets. In the U.S., it shares a platform and production line with the Bronco and Bronco Raptor, which also holds down costs.

"It makes for a real easy swap of parts between the two vehicles," Fiorani said.

The Ranger Raptor will be the company's most affordable Raptor variant; the F-150 Raptor starts at more than $78,000 with shipping, while the Bronco Raptor tops $85,000. That could open the door to new buyers who otherwise might not consider a Raptor.

"We think we're delivering what our customers are asking for," Emmert said.