US Markets
Wednesday, July 3rd, 2024 2:11 pm EDT
Key Points
- Overall Sales Increase: Ford’s overall sales increased by 1% in the second quarter compared to the same period last year, primarily driven by a 5% gain in truck sales.
- Electric and Hybrid Vehicle Growth: Sales of Ford’s electric vehicles rose by 61%, totaling 23,957 units, while hybrid vehicle sales increased by 56%, reaching 53,822 units, setting a new quarterly record for the company.
- Comparison with GM and Market Expectations: Ford’s sales growth, alongside a 0.6% increase in General Motors’ sales, outpaced industry expectations, which anticipated flat year-over-year sales for the second quarter.
Ford’s sales saw a modest rise of 1% during the second quarter compared to the same period last year, driven primarily by a 5% increase in truck sales, according to a company announcement on Wednesday. This surge in truck sales, which encompasses pickups and vans, resulted in a total of 308,920 vehicles sold in this category, marking Ford’s best second-quarter performance for trucks since 2019. Notably, the F-Series trucks were a significant contributor, with 199,463 units sold.
The company also reported a substantial growth in its electric vehicle (EV) segment, with sales totaling 23,957 units during the second quarter, representing a 61% increase. This boost in EV sales was mainly attributed to the popularity of the Mustang Mach-E and F-150 Lightning models, which have been successful in attracting new customers to the Ford brand.
In addition to EVs, Ford’s hybrid vehicle sales also experienced a remarkable uptick. The company sold 53,822 hybrid vehicles in the second quarter, marking a 56% increase and setting a new quarterly sales record since Ford began offering hybrid models over two decades ago. The rise in hybrid sales highlights the automaker’s strategy to rely on hybrid technology as a transitional step towards full electrification, which also aids in meeting increasingly stringent federal fuel efficiency standards.
This sales update from Ford comes shortly after its rival, General Motors (GM), reported a 0.6% increase in second-quarter sales compared to the previous year. GM’s total sales for the quarter amounted to 696,086 vehicles, achieving its highest quarterly sales figure since the fourth quarter of 2020.
The sales growth for both Ford and GM, though modest, surpasses the overall market expectations. Industry forecasters, including Cox Automotive and Edmunds, had anticipated that second-quarter sales across the industry would remain roughly flat year over year. This suggests that both automakers have managed to perform better than the broader market amid ongoing challenges in the automotive sector.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/07/03/ford-sales-q2-2024.html
