Ford’s February sales
Previously, we looked at how Ford’s (F) February 2017 sales data reflected pessimism as its retail sales rose 3% YoY (year-over-year). The company has been trying to maintain an appropriate balance between its retail and fleet sales in the last few quarters.
For Ford, higher sales of its F-Series trucks and SUVs could also yield high margins. Let’s find out how Ford’s legacy F-Series sales stood in February 2017.
F-Series February sales
In February 2017, Ford’s F-Series truck US sales stood at 65,956 units with a YoY increase of ~9%. During the month, the strong demand for the newly launched F-Series Super Duty trucks continued in the company’s Retail segment. As a result, February 2017 was the best month for the company’s F-Series sales in the last 13 years.
This strength was consistent with the robust retail sales performance of F-Series trucks in January 2017. In January 2016, the company sold 57,995 units of F-Series trucks, which was 13% higher on a YoY basis. These strengthening sales of Ford’s F-Series trucks can be attributed to the high demand of the F-150 model and the recently launched Super Duty trucks.
Impact on Ford’s margins?
In 2016, Ford reported lower margins on a year-over-year basis. Higher costs related to the launch of its new F-Series Super Duty truck was among the key reasons that hurt its margins. However, a consistently strong demand for the vehicle, as seen in the last four months, could yield improved profits for Ford.
In addition, a high selling price for F-Series Super Duty trucks should also help the company in increasing its ATP (average transaction price), which it did in the last few months. Notably, Ford’s ATP increased $1,900 YoY in February 2017.
In the next part, we’ll learn about Ford’s US fleet sales in February.