The second largest US automaker Ford (F) reported a 0.9% US sales surge in December 242,049 vehicles. In 2017, Ford sold around 2.6 million vehicles, down 1.1% as compared with 2016 volumes. This is primarily owing to the lower sales volume seen in most of the months in the first three quarters of the year. It was only in the last quarter that the automaker witnessed sales growth in all the three months.
Source: www.goodcarbadcar.net
Bird’s-eye view
For the Blue Oval, car sales plunged 5.5% on a year-over-year basis to 48,380 units. This was due to the fact that consumers are shifting to larger vehicles to reap the benefits of low fuel cost and an improved economy. Truck sales went down 1% in December to 110,788 units. While retail sales dropped 4%, fleet sales rose 16.8% year-over-year.
SUV sales were encouraging with 82,881 units sold, up 8% as compared with December 2016. Gains in the SUV segment was powered by impressive performances of Explorer (up 33.3% year over year), Edge (up 7.6%), Expedition (up 3.8%) and Escape (up 1.8%). The company’s average transaction price came in at $47,800 in December thanks to stellar sales of F-Series trucks.
Mark LaNeve, Ford vice president, U.S. Marketing, Sales and Service, commented:
"December capped off a record year for Ford brand SUVs, making it eight consecutive years of Ford brand sales leadership. F-Series had an unbelievable year as we sold nearly 900,000 pickups, with strong high-end truck demand as customers continue to opt for our latest technology and equipment packages."
Ford Mustang sales improved 9.2% on a year-over-year basis to 7,714 units while Focus sales stood at 11,237 units, up 9.7% from December 2016. But Lincoln’s sales slumped 17% to 10,619 units in December. On the bright side, Ford’s F-Series pickup truck happened to be the best-selling with 896,764 units sold in the country for 2017. As a matter of fact, 2017 was the best year for F-Series trucks on volume basis since 2005.
Source: www.goodcarbadcar.net
Last word
Ford saw huge demand for larger vehicles and SUVs in 2017. Having ended the year on a happy note, the Blue oval’s fourth quarter figures may have a favorable impact. As far as this year is concerned, auto sales are expected to decline. Rising interest rates would make it difficult for people to finance new vehicles. It remains to be seen how Ford would counter its challenges this year.
Disclosure: I do not hold any position in the stock mentioned in this article.
