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Ford F-Series Began 2018 on a Postive Note after a Solid 2017

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Feb. 15 2018, Updated 2:35 p.m. ET

F-series sales in January 2018

In January 2018, Ford Motor Company’s (F) F-Series truck US sales were at 59,000 units, which reflected a sales rise of ~1.6% on a YoY (year-over-year) basis. In December 2017, the total of 89,000 units of F-Series trucks sold in the US market was 2.1% higher YoY.

In 2017, the company sold ~0.90 million units of its F-Series trucks, reflecting sales growth of 9.3%. With this, 2017 became the best year for F-Series US sales since 2005.

Except in April 2017, F-Series sales grew in all other 11 months of 2017. December was the best sales month for Ford F-Series US sales in the year.

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Key strengths

The demand for F-Series Super Duty premium truck models, including King Ranch and other high-end variants, continued to be strong last month and drove overall F-Series sales higher. Also, the sales of the company’s recently launched 2018 F-150 truck continued to be solid in the last three months of the year.

In January 2018, the ATP (average transaction price) of F-Series trucks rose $1,400 compared to January 2017 and $140 compared to December 2017 to another record level of $47,800.

Do investors care?

In 2017, Ford stock rose ~3.0% compared to the 19.4% rise seen in the S&P 500 Index. The year 2018 has begun on a weak note for Ford, with its stock falling ~13.4% year-to-date as of February 12. The company’s weak 2018 outlook could be the key reason for its dismal performance on Wall Street in 2018 so far.

In the pickup truck market, legacy auto companies (XLY) such as General Motors (GM), Toyota Motor (TM), and Fiat Chrysler Automobiles (FCAU) compete with Ford’s F-Series. GM’s Chevrolet Silverado, Toyota’s Tacoma, and FCAU’s Ram are some of the notable light-truck brands in the United States.

Ford’s F-series trucks and other SUVs (sport-utility vehicle) tend to yield higher profits compared to its smaller vehicles. This difference is why consistent improvements in F-Series sales figures could help boost investors’ confidence in the stock.

Continue to the next article, where we’ll learn about Ford’s US retail and detailed truck segment sales in January 2018.

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