11 Apr

F-Series Trucks: Ford’s Growth Engine in 2017?

WRITTEN BY Jitendra Parashar

F-Series March sales

In March 2017, Ford Motor Company’s (F) US sales for its F-Series trucks were 81,330 units, reflecting a YoY (year-over-year) rise of about 10.1%. That month, strong demand for the newly launched F-Series Super Duty trucks continued in the retail segment, and March 2017 became the best March for F-Series sales in more than a decade. Sales for F-Series trucks were also strong in February 2017.

F-Series Trucks: Ford’s Growth Engine in 2017?

Trucks with high demand

In February, Ford sold 65,956 F-Series trucks, which was a 9.0% rise YoY. High demand for the F-150 and the recently launched F-Series Super Duty trucks could be the primary reason for strengthening truck sales.

Higher sales of F-series trucks and SUVs (sport utility vehicles) yield higher margins for Ford.

Will trucks become Ford’s growth engine?

In 2016, Ford’s profit margins fell YoY. Higher costs related to the launch of its new F-Series Super Duty truck hurt its margins. But a consistently strong demand for the truck, as seen in the first quarter of 2017, should yield high profits.

The high selling price for F-Series Super Duty trucks should also help Ford increase its ATP (average transaction price) as it did in the last few months. Ford’s ATP rose $2,500 YoY in March 2017.

Mainstream automakers (XLY) such as General Motors (GM), Fiat Chrysler (FCAU), and Toyota (TM) compete with Ford in the US truck and utility vehicle segment.

In the next part of this series, we’ll take a look at Ford’s US fleet sales in March.

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