US Markets
Friday, February 2nd, 2024 5:57 pm EDT
Key Points
- Hybrid Sales Surge Amid Overall Growth:
- Ford Motor reported a 4.3% increase in sales in January compared to the same month in 2023, with total sales reaching 152,617 vehicles.
- The notable aspect of the sales increase was a 43% jump in hybrid vehicle sales, reflecting Ford’s strategic focus on doubling down on hybrid technology.
- Traditional vehicles with internal combustion engines also experienced a 2.6% uptick, contributing to the overall growth in sales.
- Mixed Performance of Electric Vehicles (EVs):
- While hybrid sales witnessed a significant surge, all-electric cars and trucks faced challenges, with an 11% decline in sales.
- The Mustang Mach-E crossover saw a substantial 51% drop in sales at the beginning of the year, contrasting with the F-150 Lightning pickup, which experienced a less than half a percent dip.
- Despite the challenges, Ford is intensifying efforts in the electric vehicle segment by ramping up production of the E-Transit electric van, which recorded over 1,100 units sold in January compared to less than 400 a year ago.
- Market Composition and Competitive Dynamics:
- Despite the emphasis on hybrids, traditional cars and trucks still dominated Ford’s sales, representing 90% of total sales in January.
- Hybrids, led by the Ford Maverick pickup, accounted for 7.3% of sales, while electric vehicles made up roughly 3%, totaling less than 5,000 units.
- Sales of Ford’s highly profitable F-Series pickups experienced a decline of about 12% last month, with roughly 48,700 units sold.
- Ford released its January sales figures ahead of the upcoming fourth-quarter and year-end earnings report. In contrast to its crosstown rival General Motors, which exceeded Wall Street expectations and saw a notable stock increase of more than 7% in 2024, Ford’s stock has fallen about 1% this year. The divergent market performance highlights the competitive challenges and dynamics within the automotive industry as companies navigate the evolving landscape of hybrid and electric vehicles.
In January, Ford Motor reported a 4.3% increase in sales compared to the same month in 2023, with a notable surge in hybrid vehicle sales offsetting an 11% decline in all-electric cars and trucks. The Detroit automaker sold 152,617 vehicles during the month, with hybrid sales witnessing a remarkable 43% jump and traditional vehicles with internal combustion engines experiencing a 2.6% uptick. This spike in hybrid sales aligns with Ford’s strategic emphasis on doubling down on hybrid technology, catering to the growing demand for such vehicles. Despite the surge in hybrid sales, 90% of Ford’s total sales in January were traditional cars and trucks, while hybrids, led by the Ford Maverick pickup, constituted 7.3% of sales. Electric vehicles (EVs) made up around 3%, with the Mustang Mach-E crossover experiencing a 51% drop in sales at the beginning of the year. In contrast, the F-150 Lightning pickup saw a less than half a percent dip in sales. Ford is increasing production of its E-Transit electric van, which recorded over 1,100 units sold in January compared to less than 400 a year ago. Despite these efforts, sales of Ford’s highly profitable F-Series pickups fell about 12% in January to around 48,700 units. The company released these January sales figures ahead of its upcoming fourth-quarter and year-end earnings report. While Ford’s crosstown rival General Motors exceeded Wall Street expectations with its recent results and 2024 guidance, Ford’s stock has experienced a 1% decline in 2024, in contrast to GM’s notable stock increase of more than 7% this year. The contrasting market performance underlines the complexities and challenges within the competitive automotive industry as companies navigate the evolving landscape of electric and hybrid vehicles.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/02/ford-hybrid-vehicle-sales-surge-to-offset-ev-decline-in-january.html
