From Jim Farley to RJ Scaringe, Auto CEOs Turn Off-Road Vehicles Into Profit Engines
Last month, Ford CEO Jim Farley told The Detroit News ahead of the Detroit Auto Show that vehicles like the Bronco, Raptor and Tremor have become major profit centers for the company. “The off-road business is very unusual because it’s extremely profitable, and the customers love the product, and it’s an enthusiast product,” he said.
Off-road vehicles and their derivatives have been a core profit strategy for Ford in recent years, and it’s not alone. Across the industry, off-road SUVs and trucks have become a financial engine for legacy automakers. They also help keep newer EV makers like Rivian and comeback brands like Scout Motors in the spotlight at a time when overall EV sales have cooled. Rivian founder and CEO RJ Scaringe frequently highlights the brand’s rugged design and off-road capability as central to its identity. Scout CEO Scott Keogh is betting that Americans’ renewed love for adventure-ready SUVs can revive the 1960s-era nameplate.
Off-road-looking vehicles are everywhere today. They fill grocery store parking lots and school pickup lines. But most log far more miles on pavement than on dirt. In many cases, today’s off-road trims are as much about image as they are about capability.
Among buyers who want an off-road appearance package, only 21 percent plan to take their vehicle off pavement for recreation, according to AutoPacific data. “The appeal of off-road trims is more about aspiration and image than any actual intent to go off-road,” Ed Kim, president and chief analyst at AutoPacific, told Observer.
To be clear, models like the Bronco and high-performance Raptors are genuinely capable off-road. The broader market, however, is saturated with rugged-looking packages. Shoppers can choose from trims such as Toyota’s Woodland, Honda’s TrailSport, Subaru’s Wilderness, Mazda’s Meridian Edition and Nissan’s Rock Creek, among others. Many add plastic cladding, all-terrain tires, unique wheels or more durable interior materials.
Those features can be useful. But they do not always translate into significantly improved off-road performance. Often, the changes are cosmetic, designed to project toughness rather than enable serious trail use.
That gap between image and use is where the business case becomes compelling. According to AutoPacific, off-road appearance packages such as Kia’s X-Line, Hyundai’s XRT and Nissan’s Rock Creek typically add about $1,000 to a vehicle’s MSRP. The cost of the added hardware to the automaker—often tires, cladding and minor trim changes—is relatively low.
“It’s an easy way to increase the margin on an SUV or truck,” Kim said.
The spread can be even wider on higher-end trims. The Toyota Tacoma TRD Pro starts at roughly $65,000, compared with about $32,000 for a base Tacoma. “That upgrade represents plenty of profit for Toyota,” Kim said.
For automakers, derivatives are far cheaper than clean-sheet designs. A new trim can draw attention and reach a different audience without the cost of developing an entirely new vehicle.
“The Bronco Heritage Edition is functionally the Bronco Big Bend with some white paint, a new grille and different wheels, at a premium of more than $10,000,” Sean Tucker, managing editor at Kelley Blue Book, told Observer.
He argues that the appeal runs deeper than features alone. “Many Americans see their cars as an expression of their personality. Settling into a car that makes you think of the outdoors can be an actual comfort, even if you’re mostly using it to commute to work,” Tucker said. “Automakers know that, and they make the obvious business decision of making more derivatives.”
SUVs have dominated the U.S. market for decades, buoyed by regulatory changes, aggressive marketing, technological advances and shifting consumer tastes.
The COVID-19 pandemic accelerated the trend. As indoor activities shut down, off-roading and overlanding gained traction as socially distanced pastimes. “There have been distinct increases in off-road lifestyle activities like overlanding in recent years,” Tucker said. Overland Expo estimates that 8 million Americans participated in off-roading in 2024, with 12 million expected to take part in 2025.
Like fashion, automotive design trends move in cycles. For now, rugged styling is ascendant. Even mainstream SUVs are adopting tougher-looking cues in their base models. Whether the aesthetic fades or evolves, analysts say the underlying business logic will endure.
“As SUVs continue to fragment, we’ll see more niches within the SUV umbrella,” Tucker said. “That ranges from on-road performance design to rugged off-road design, and everything in between.”