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.”