Ford Motor Company (F, Financial) bounced back strong after a lackluster start to its U.S. auto sales in January. Robust demand for SUVs including the Ford Escape helped the company post strong February sales in the last 11 years. Ford recorded sales volume of 217,192 vehicles for the month, a gain of 20.4% year-over-year.
Ford sales volume comparison for January and February. Data from goodcarbadcar.
Ford’s sales were boosted primarily by the SUVs and the F-Series. The pickup makes for the major chunk of the company’s U.S. sales and generates the maximum profits. Let’s take a closer look at how the SUVs and F-Series contributed to the Blue Oval’s sales and made February a joyous month.
SUVs put up a good show
Undoubtedly, one of the key driving force behind the month’s sales gain were the SUVs. Retail sales shot up 11%. SUVs, led by strong Edge and Escape sales, witnessed a 28% sales increase compared with last year. While Edge sales nearly doubled as compared with last year, Flex sales spiked a mammoth 77%.
The company’s gains in SUV sales outshined the mediocre sales gain of cars and trucks, which were up 6% and 5%. The company has promised to come up with four new and refreshed models at the Chicago Auto Show in the next four years. It is looking forward to increase its SUV line-up by entering in new segments with fresh vehicles instead of substituting the present models.
Moreover, Ford sales analyst Erich Merkle remains optimistic about Escape and expects its sales to grow even stronger this year once the revitalized model arrives at showrooms. SUVs and crossovers grew 16% last year and were also among the fastest growing segment in the U.S. SUV market share has risen from 35% to 40%. Ford is playing its cards right by planning to extend its SUV lineup to capitalize on the growth prospects.
F-Series shows up strong
January historically has always been a soft month for F-Series truck sales. This year was no exception as sales fell 5%. However, truck sales climbed 15% in February, while the Ford F- Series pickup sales improved 10%. Moreover, the company witnessed robust sales improvement in regions like New York, Washington DC, Florida and California.
Ford F-Series sales volume comparison for January and February. Data from goodcarbadcar.
This month was the company’s best February in a decade as far as F-Series is concerned. It remains Ford’s best-selling vehicle so far as it accounts for nearly 28% of the company’s total sales. Not just this, the F-Series remains the economy’s favorite pickup, which is evident from its sales and lead over the likes of General Motors’ (GM, Financial) Silverado. The Super Duty, which is being manufactured at the Ford’s Kentucky truck facility, is expected to witness strong sales after the company takes the wraps off the all-new 2017 model year this year.
Moreover, F-Series has yet again managed to book strong Average Transaction Prices (ATPs), up approximately $1,800 from a year ago.
Last word
Overall, February was a terrific month for Ford. The company expects F-Series and SUVs to go strong in the coming months, thereby powering healthy profits. A healthy increase in fleet sales is another positive for the company. It would be interesting to see how the sales chart trends over the coming months for the automaker.
