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Jacob Maslow
Jacob Maslow
Articles (179)  | Author's Website |

Ford F-Series Sales Rise 10%, Stock Falls 2.5% on Overall Sales

The automaker's sales fell 7.2% year-over-year with just 236,250 vehicles sold in the latest quarter

Ford Motor Co. (NYSE:F) stock continues to decline, falling 2.5% on Monday and over 10% in the past 30-day period. The automaker's sales are on the decline, falling 7.2% year-over-year with just 236,250 vehicles sold in the latest quarter.

The automaker's car sales are down 24.2% as consumer interest in trucks led to a 2.5% increase in truck sales. SUV sales are also down, declining 3.4% in the most recent quarter. Ford vehicle sales are down 7.5%, while Lincoln sales are down 1.4%.

F-Series sales helped offset losses slightly with an increase of 10.1% in sales for the quarter. The company's Ford Focus sales are down 22.5%, while the company's Fusion model is down 36.8% for the quarter.

The company's stock is down 4% on the year.

Truck and SUV sales are on the rise in March despite a slump by Ford. General Motors (NYSE:GM) noted a 2% gain in overall vehicle sales and a 21% increase in SUV sales. Nissan Motor Co. Ltd. (TSE:7201) sales rose 3% on the quarter, with SUV and truck sales rising 29%.

Ford is under additional pressure to start the week since the company recalled 52,000 F-250 pickups over the weekend. The recall states the F-250 models under the recall may move while in the park position. Customers are advised to use their parking brake to ensure their vehicle does not move while in park.

Vehicles being recalled may move without warning, leading to unintended auto accidents. The company has not reported any car crashes or injuries associated with the faulty shifter.

Ford has worked to compete in the growing automobile market disrupted by Alphabet's Google (NASDAQ:GOOGL) (NASDAQ:GOOG) and Tesla (NASDAQ:TSLA). The two companies are working toward autonomous vehicles, with Ford announcing the hiring of 400 engineers from BlackBerry (BBRY) to help build out its internet-connected vehicles.

Mark Fields, Ford CEO, announced a plan to invest in the company's future with a focus on self-driving vehicles. The company recently purchased Argo AI for $1 billion. The company is founded by veterans in Uber Technologies and Alphabet who have worked on self-driving projects. The acquisition will allow Ford to have a centerpiece for its autonomous vehicle software.

Ford will retain the company's team and startup culture to boost innovation and allow the artificial intelligence startup to flourish. The company also plans to release its Level 4 self-driving vehicles by 2021. The vehicles will be used for ride-hailing and car-sharing.

The company's plans for its ride-hailing and car-sharing vehicles remain unclear, but Ford may be creating its own new service to compete with the likes of Uber and Lyft.

Fields is heavily invested in electric vehicles and self-driving cars, with reports the company will increase his pay by 19%, coming as a surprise to investors. The company's heavy expenditures will be under additional pressure as Fields is paid $22 million a year to lead its transition.

The company also provided its chief executive with a "strategic incentive" grant in 2016 valued at $2.5 million. The grant was given for the CEO's effort to speed up the automaker's transformation.

Disclosure: Author does not own any of the listed stocks.

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About the author:

Jacob Maslow

Jacob Maslow is a writer who began his career as a payroll manager. The same affinity for numbers that originally led him to an early career in accounting now comes in handy when it comes to understanding and working with marketing analytics.

A native of New York, Maslow is now based in the Middle East, where he lives with his wife and five children and provides high-quality services to clients in a variety of industries, including the legal, medical and financial sectors.

In addition to his marketing and consulting work, Maslow has founded a variety of news websites, including Legal Scoops. He is a frequent contributor to a variety of publications.

Visit Jacob Maslow's Website

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