US Markets
Wednesday, October 4th, 2023 2:01 pm EDT
Key Points
- Ford Motor reported a 7.7% increase in its U.S. new vehicle sales for the third quarter compared to the previous year. This growth was primarily driven by higher sales of traditional pickup trucks in Ford’s lineup, with truck sales increasing by 15.3%. In contrast, car sales saw a 5.1% decline, and sales of SUVs remained essentially flat.
- While Ford’s sales performance in the third quarter met expectations set by Edmunds, it fell short of industry analyst forecasts for the overall automotive industry, which had anticipated a more substantial increase of 15% to 16%. Additionally, Ford’s electric vehicle (EV) sales experienced a 14.8% increase during the quarter, with the majority of these sales coming from the Mustang Mach-E crossover. However, sales of the F-150 Lightning electric pickup were down by about 46% due to slower-than-expected demand and production downtime. Ford’s EV sales represented only about 3% of its total vehicle sales in the first nine months of the year and 4.2% in the third quarter.
In the third quarter, Ford Motor reported a 7.7% increase in U.S. new vehicle sales compared to the previous year, primarily driven by strong sales of traditional pickup trucks in its lineup. The company noted a 15.3% surge in truck sales while car sales saw a 5.1% decline, and SUV sales remained largely flat. While Ford’s sales performance aligned with Edmunds’ expectations, it fell short of industry analyst forecasts predicting a 15% to 16% increase for the overall automotive sector during the same period.
Ford’s electric vehicle (EV) sales experienced a 14.8% increase in the quarter, totaling nearly 21,000 units. Most of these EV sales were attributed to the Mustang Mach-E crossover, whereas sales of the F-150 Lightning electric pickup decreased by approximately 46% due to slower demand and production downtime at the plant.
However, Ford’s EV sales still represented a small fraction, approximately 3%, of the total 1.5 million vehicles sold by the automaker in the first nine months of the year, and 4.2% of sales during the third quarter. On the other hand, Ford’s hybrid vehicle sales, led by models like the F-150 and Maverick hybrid trucks, posted impressive growth with a 41.4% increase over the previous year during the third quarter.
Despite an ongoing strike by the United Auto Workers (UAW) union against Detroit automakers, including Ford, during the third quarter, the impact on sales was relatively minimal. However, the strike’s effects may become more pronounced in the upcoming month, particularly affecting vehicles like the Ford Bronco SUV and Ranger midsize pickup, which are the first models to halt production due to the strikes that began on September 15. The strikes, involving approximately 17% of UAW members covered by expired contracts with GM, Ford, and Stellantis, have been escalating gradually rather than through simultaneous nationwide walkouts to preserve the union’s funds and prolong the work stoppages to influence the automakers.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/10/04/ford-reports-7point7percent-increase-in-third-quarter-sales.html
