The second-largest U.S. automaker Ford Motor Co. (F, Financial) reported a 0.7% sales growth year- over-year to 242,824 vehicles, which stayed above the forecast of a 1.9% decline.
The production halt caused by a fire at a supplier’s plant in Michigan hampered the production of F-Series pickups. Yet, it did not hinder the company from posting a sales gain in May. Meanwhile, the company’s year-to-date sales plummeted 2.4% to 1,047,056 units.
Diving into the numbers
While Ford’s retail sales jumped 3.5% to 163,796 units, fleet sales plunged 4.6% year-on-year to 79,028 units. The company’s average transaction price for the month soared to $35,800 per vehicle, which was higher than the industry average.
Ford F-Series sales climbed 11.3% on a year-over-year basis. This month marked its 13th successive quarter of year-over-year sales growth. As a matter of fact, the truck brand witnessed its best monthly sales performance since 2000. Mark laNeve is the company’s vice president for U.S. marketing, sales and services. He commented:
“F-Series didn’t miss a beat last month. With sales up 11 percent in May and 6 percent year-to-date, F-Series is off to its best start since 2000 and is on track to deliver its ninth consecutive year gain. Navigator continues to fly off dealer lots, with an increasing number of customers coming from Mercedes and Land Rover.”
Mustang sales for the month amounted to 8,739 in May, which represented a 10.7% sales growth on a year-over-year basis, thereby remaining the company’s top-selling sports car, be it in the U.S. or worldwide. Lincoln Navigator sales, on the other hand, were stunning in May (up 122.4%) with the average transaction price amounting to more than $80,000.
Customers remained bullish on SUVs
Passenger car sales for the month fell 10% due to the continued shift in consumer preferences to SUVs from passenger cars. The key point is that SUVs and trucks continue to be in huge demand and have overshadowed mounting fuel prices. SUV sales surged 0.5% to 81,701 units, thanks to strong sales of the new EcoSport (5,481 units), which compensated for the 9% decline in Expedition sales. Truck sales, on the other hand, spiked 9.4% to 108,605 units.
"Despite rising transaction prices and higher fuel costs, the new vehicle market remains strong," said Karl Brauer, executive publisher for analysis companies Autotrader and Kelley Blue Book, "Consumers continue to buy trucks and SUVs at an accelerated pace, more than offsetting the ongoing drop in car sales.”
Disclosure: I do not hold any position in the stock mentioned in this article.
