Slender inventories and production cuts worked to trim Ford Motor Co. sales slid 31.8% in July, the company reported.
Only about half of the automakers operating in the U.S. report sales monthly. But Ford’s unit sales in July totaled 120,053, meaning Ford trailed Toyota, Honda and the combined sales of the South Korean automakers Kia and Hyundai, which are part of the same conglomerate.
Nonetheless, Ford executives saw plenty of positive signs in the anemic numbers.
“In addition to the sales we delivered in July, our retail order bank increased over 70,000 units, excluding our Bronco and Maverick retail orders, which is 10 times higher than we were a year ago,” noted Andrew Frick, Ford vice president of sales for the U.S. and Canada.
Ford’s new products lead the way
Frick said Ford’s newest products, including F-150 Power Boost, Mustang Mach-E, Bronco and Bronco Sport, are conquesting at a rate that is almost 14 points higher than Ford overall.
“With our strong portfolio of new products, robust transaction pricing and a big order bank, we are perfectly positioned for significant growth as the semiconductor chip situation improves,” Frick said.
Frick said the orders position Ford for growth.
Meanwhile Mustang Mach-E July sales grew 15.8% in July compared to June. It now trails only the Tesla Model Y in battery-electric SUV sales through the first half of this year.
Ford noted F-150 Lightning reservations now number more than 120,000 with nearly 80% of those coming from owners of other brands. The majority of orders are from California, “bringing new people to the full-size truck segment,” the company said.
Electric portfolio building sales momentum
Ford’s electrified vehicle portfolio set a new sales record in July. In the process, Ford’s California continued to see growth in California. The company’s electrified vehicle sales were up 57.5% on sales of 9,103 vehicles, with Mustang Mach-E and F-150 PowerBoost Hybrid leading the way with sales of 2,854 and 4,498, respectively, the company reported.
Despite plant closings forced by the shortage of semi-conductors, cutting Ford’s production in half during the second quarter, the F-150 PowerBoost Hybrid reported its best sales numbers since its introduction. Sales of the hybrid rose 23.4 % compared to June. Additionally, the company rode its new truck and SUV vehicle introductions to a 6.7% year-over-year sales increase of high-series trim levels.
The automaker’s average transaction price is up approximately $8,400 to almost $50,000 per vehicle, while July’s incentive spend as a percentage of transaction pricing was 3.5% per vehicle, down more than 7 percentage points over a year ago and 1.4 points lower than the overall industry.
Through the first half of the year, Ford’s accessory business was up 23% and on track for a record year.