Thursday, November 26, 2020

Remanufacturing Pickup Trucks

Base model new Ford F250s are priced around $40,000! With more amenities and features, the prices can get up near $100,000. That's insane. I spent a lot of time trying to understand those prices. One of the plausible explanations is that small businesses buy a lot of those trucks and write off the depreciation, so the tax structure supports those inflated prices. For many businesses who purchase those expensive trucks, though, those vehicles don't produce the amount of value that they consume.

I have a 1997 F250 that I use for hauling bulk products. It cost $1500, but has since absorbed lots of time and about $5000 in repairs. If I had done those repairs myself, it'd probably only be $1000 worth of parts. Anyway, there's an obvious market for remanufactured trucks.

It's also a good question if those new trucks are significantly more reliable than an old truck. I've heard that many newer trucks, especially diesel trucks, require expensive repairs in the first few years of use. 

A pickup truck with its body on frame design can basically last forever with proper maintenance. In fact, it seems plausible that remanufactured trucks could be more reliable and last longer than a brand new $40,000 pickup at much lower cost. The problems with the 90's generation pickups are well known, for example. Those problems could be corrected with pretty minimal retrofits and repairs. Replacement parts can be made with better materials, etc...

A retro-fit/remanufacture strategy might be better than trying to design a "cottage industry" vehicle from scratch. It avoids regulatory issues and reduces the amount of investment that would be required. An open source approach is still a viable option. For example, imagine an open source design, and open source data on reliability of various components, like air conditioner compressors or even frame and suspension components. Engineering for long life and reliability instead of "style" and planned obsolescence is a good strategy to compete with new vehicles.


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