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Ford’s US Sales Fell in July after Rising for Two Months in a Row

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Ford’s US sales in July 2018

Ford Motor Company (F) sold 194,026 vehicle units in the US market in July 2018, a 3.1% decrease from its US sales in July 2017. In the previous two months, the company reported YoY (year-over-year) gains in its US sales. In June 2018, Ford’s US sales went up by 1.2% to 230,635 vehicle units after witnessing a minor rise of 0.7% YoY in May.

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Fleet sales jumped up

On the positive side, Ford’s total US fleet sales registered a sharp YoY recovery in July after sliding for the past three months. Last month, the company’s fleet sales were up 25.7% YoY to 51,184 units supported by fleet order timing. Previously in June 2018, the company reported a 2.3% YoY decrease in its US fleet sales to 73,847 vehicle units.

Fleet’s contribution rose

As a percentage of its total US sales, the company’s fleet sales last month were at 26.4%. In July 2017, Ford’s fleet sales as a percentage of its total US vehicle sales were much lower at 20.4%.

For auto companies, it’s important to keep the right balance between retail and fleet sales to protect their profit margins and market share. This is because fleet sales typically result in weaker profit margins for auto companies as compared to their retail sales.

On the other hand, fleet sales help auto companies (XLY) to boost their market share and revenue. This is the reason why auto companies such as Fiat Chrysler (FCAU), General Motors (GM), and Toyota (TM) have shifted their focus to retail sales in the recent past to protect profit margins.

In the next part, we’ll take a look at Ford F-Series truck sales in the first seven months of 2018.

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