Ford's New Maverick: Utility Of A Pickup, Efficiency Of An Econobox

Ford Motor Co. F is pulling the domestic car industry back into the small-pickup truck game after a decade-long absence. The company unveiled the Maverick Tuesday, positioning it as a fuel-sipping stuff hauler that can be had for as little as $20,000.

What To Know: The launch of the vehicle, which is roughly as long as a Tesla Inc.'s TSLA Model X, is a reversal for Detroit automakers who recently created trucks under the bigger-is-better philosophy.

Full-size pickups like Ford’s F-150 or Stellantis NV's STLA Ram have increasingly beefed up in recent years, while trucks once thought of as compact (think Ford’s Ranger or Chevy Colorado) are now considered “midsize “vehicles.

Why It's Important: The announcement comes as Ford CEO Jim Farley oversees a steady climb in the stock price. Trading at $16.33 at the beginning of the week, Ford shares notched about a 144% increase in the 10 months since Farley’s appointment was announced.

Small domestic pickups disappeared from dealer lots in about 2010, about the time of the General Motors Co. GM bankruptcy and when high fuel prices led executives to assume the market for smaller pickups was dead.

Maverick Deets: The Maverick is a bet on buyer demand for fuel-efficient utility. It can be fitted with a hybrid propulsion system that Ford says achieves 40-miles per gallon – roughly the same as a Honda Civic. Ford estimates the Maverick will travel 500 miles with a hybrid powertrain; fuel efficiency drops with a more conventional gasoline engine, but towing power increases.

See also: How to Buy Ford Stock

While small, the pickup bed is big enough to carry standard sheets of plywood. Look for the Maverick to arrive in showrooms in late 2021, pulling up alongside other new models in Ford’s stable, including the hot-selling Mach-E electric and the Bronco.

The Maverick is made in Mexico, but this isn’t only because of the cheap labor and free-trade deals that are plentiful south of the border. This truck shares parts with Ford’s Escape SUV and Bronco Sport, enabling component sharing on vehicles that tend to be highly profitable.