Ford, Lincoln and Mercury dealers reported total sales of 176,323 vehicles, up 17% versus the same period last year.
Year-to-date sales are off 24% in a market that is down about 32%. August SAAR rates will not be available until later today or tomorrow, and because of the federal government’s wildly successful CAR program, aka Clunkers, they are likely to be atypical, and a payback is coming in the short term.
The company predicts a decline in its sales for September alogn wth others due to the effects of the CARS program ending. Moreover, Ford executives refuse to speculate on the near term sales outlook due to economic uncertainty.
Ford, however, does predict a market share of 15% for the balance of the year, and is still thinking the seasonally adjusted annual selling rate (SAAR) year-to-date will remain at a depressed level of around 10.6 million vehicles.
Still, this is higher than the 9.8 million SAAR in the first half of the year.
Ford is also predicting its fleet sales will increase to 30% of its mix after a year when it touted its retail share of 13%. Um…
Traditionally, a share of market point was worth $1 billion in revenue, hence the temptation, long given into, to use fleet sales as a short-term band aid even though the ultimate effect on individual customers increases the cost of ownership by decreasing trade-in values that are roughly 25% lower than those of stronger brands that do not use this tactic consistently.