Ford Sales Rise 11% as SUV Purchases Continue to Soar

By Avi Salzman

Ford (F) posted 11% year over year growth in vehicle sales for August, less than rival GM, but better than many of its Japanese competitors. Shares dropped 1.5% in midday trading.

Ford consistently touts the growth in sales of its energy-efficient cars, and there’s a kernel of truth to that. But lately, the company’s SUVs have been driving its sales growth.

Yes, the Ford Fiesta posted 76% sales growth to 5,833 units from 3,315, but the Explorer saw sales quadruple from a year ago, to 9,901 from 2,474. Ford sold 4.9% more Fusions, but 39% more Escapes. (On a relative basis, the company points out that its SUVs are becoming more fuel-efficient, with the Escape now getting 28 mph on the highway when equipped with  a 2-liter EcoBoost engine).

The uptick in sales of larger vehicles is good news for Ford, given that sales of larger vehicles tend to stretch margins. Trucks, however, haven’t fared as well, which could be a problem.

For the year so far, the company has sold 21.9% more cars and 29.7% more utilities. Truck sales are up 8.5%.

Advertisements
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s