Ford’s US Sales Rose for 4th Consecutive Month in December 2017



Ford’s US sales in December 2017

Ford Motor Company (F) sold 242,049 vehicle units in the US market in December, a rise of about 0.9% from its US sales in December 2016. December was the fourth month in a row that Ford reported positive sales growth in the US market. In November 2017, the company’s US sales were at 210,771 vehicle units, a ~6.7% increase on a YoY (year-over-year) basis. With this, Ford’s 2017 total US sales were down by about 1.1% YoY, which was still better than the industry average.

Article continues below advertisement

Higher fleet sales

In December 2017, Ford’s (F) total US fleet sales went up by about 16.8% YoY to 65,885 vehicle units. As a percentage of its total US sales, the company’s fleet sales were at 27.2%. In December 2016, Ford’s fleet sales as a percentage of its total US vehicle sales were much lower at ~23.5%.

In the last few months, Ford’s fleet sales have risen at a much higher rate than the fleet sales of direct peer General Motors (GM).

Will it translate into higher market share?

It’s important for auto companies to maintain the right balance between retail and fleet sales to protect profitability because fleet sales typically result in lower profit margins for auto giants as compared to retail sales. However, fleet sales help automakers (IYK) to boost their market share and revenues.

In the last couple of years, large auto companies such as GM, Fiat Chrysler (FCAU), and Toyota (TM) have increased their focus on retail sales to improve profit margins.

In the next part, we’ll take a look at Ford F-Series truck sales in December 2017.


More From Market Realist