Ford’s US sales in March 2018
Ford Motor Company (F) sold 244,000 vehicle units in the US market in March 2018. These data reflected an increase of ~3.4% from its US sales in the same month of 2017. March was the first month in 2018 during which Ford reported YoY (year-over-year) US sales strength. In February 2018, the company’s US sales were at 194,000 vehicle units, a fall of ~6.9% YoY.
In 2017, Ford’s total US sales fell ~1.1% YoY—still better than the industry average.
Fleet sales weakness continued
In March 2018, Ford’s total US fleet sales jumped ~8.7% YoY to 85,000 vehicle units. As a percentage of its total US sales, the company’s last month’s fleet sales were at 34.9%. In March 2017, Ford’s fleet sales as a percentage of its total US vehicle sales were at 33.2%.
In the last couple of quarters, Ford’s US fleet sales have risen at a much higher rate than its direct peer General Motors’ (GM) US market fleet sales.
Market share and fleet sales
For auto companies, it’s important to keep the right balance between retail and fleet sales to protect profit margins and market share. Fleet sales typically result in lower profit margins for auto companies compared to their retail sales. Nevertheless, fleet sales help auto companies (XLY) boost their market shares and revenues. Auto giants such as Fiat Chrysler Automobiles (FCAU), GM, and Toyota Motor (TM) have shifted their focuses to US retail sales lately to improve their profit margins.
In the next article, we’ll take a look at Ford’s F-Series truck sales in March 2018.