Ford Motor Co. fell by 21% in February as limited inventory and supply chain issues continued to hamper the company’s efforts and those of its competitors to deliver vehicles to customers.
Ford also reported its sales of electrified vehicles dropped by 3% but the company said its electrified vehicle conquest rates climbed to 54%, which is 13 percentage points higher than year ago.
“In addition to our February sales, our retail order bank continues to expand totaling 72,000 vehicles in February – four times higher than last year,” according to Andrew Frick, vice president of sales for the U.S. and Canada.
“Our newest products are turning on dealer lots at record rates. More than 33% of our retail sales are coming from previously placed orders and leaving dealerships directly upon arrival. Our new products are conquesting from competitors at a rate that is 26 percentage points higher than Ford overall, including Maverick, Mustang Mach-E, Bronco and Bronco Sport.”
Short inventory hampers carmakers
While demand for new vehicles remains strong, the sales totals, with a few exceptions, reflected the difficulties with the supply chain, which included semiconductor shortages, winter storms and a blockade by protestors at two key bridges between the U.S. and Canada.
American Honda noted while its customer demand remained strong — nearly 60% of the vehicles going to dealers are pre-sold — multiple supply issues and Winter Storm Landon disrupted the company’s progress in improving inventory.
Subaru of America Inc. also blamed a drop in sales on supply chain problems. It reported 44,866 vehicles sold for February 2022, a 7.1% decrease compared with February 2021. Semiconductor shortages and supply chain issues continue to impact manufacturers across the automotive industry, including Subaru.
Toyota also reported a double-digit drop in sales for February. But Hyundai, Kia and Mazda, which posted an 8% increase in sales during February. All three brands also offer some of the most affordable vehicles now on the market suggesting that there is some price resistance developing among consumers.
Cox Automotive observed the year is off to a slow start, with tight inventory holding back the market.
“The omicron wave of COVID has receded and economic activity is picking up as a result, but retail vehicle sales have been disappointing. In fact, the month started better than it is finishing up,” noted Jonathan Smoke, Cox chief economist.