F-series sales in December
In December 2017, Ford Motor Company’s (F) F-Series truck US sales were at 89,385 units, a sales gain of about 2.1% on a YoY (year-over-year) basis. Previously in November, total sales were at 72,769 F-Series units in the US market, which was 0.9% higher YoY. In addition, 2017 stood out as the best year for F-Series US sales since 2005. In 2017, the company sold about 0.90 million F-Series units, reflecting 9.3% YoY growth.
Increase in premium model sales
Continued strong demand for F-Series Super Duty premium truck models such as King Ranch and other high-end variants gave a boost to Ford’s overall F-Series sales last year. Also, the sales of the company’s recently launched 2018 F-150 truck gained momentum in the last couple of months.
With the exception of April 2017, F-Series sales rose in all 11 months of 2017. December was the best sales month for Ford F-Series in the US in 2017.
Consistent solid demand for F-150 trucks and buyer interest in newly launched variants of Super Duty trucks played key roles in boosting Ford’s total US truck sales last year. In December 2017, the ATP (average transaction price) of F-Series trucks also rose to a record $47,800 with a YoY increase of $3,400.
Will it boost investor confidence?
In 2017, Ford stock rose about 3.0% as compared to 19.4% year-to-date gains in the S&P 500 Index (SPY) (SPX-INDEX). However, 2018 has begun on a solid note for Ford, as its stock has risen 4.7% year-to-date as of January 9.
F-series trucks and other SUVs (sports-utility-vehicles) tend to yield higher profits for Ford Motor Company as compared to its small cars. Therefore, consistent improvements in F-Series sales should boost investor confidence. These improvements could be another reason why its stock has risen by 19.1% in the last six months.
In the US pickup truck segment, legacy auto manufacturers (XLY) such as General Motors (GM), Toyota (TM), and Fiat Chrysler (FCAU) compete with Ford F-Series. GM’s Chevrolet Silverado, Toyota’s Tacoma, and FCAU’s Ram are some of the notable light truck brands in the country.
Read on to the next part where we’ll learn about Ford’s US retail and detailed truck segment sales in December 2017.