F-Series sales in October
In October, Ford Motor Company’s (F) F-Series truck sales in the United States were at 70,438 units—an ~7.3% sales decline on a YoY (year-over-year) basis. In September, 75,092 units of F-Series trucks were sold in the United States—down 8.8% YoY. Until August, the F-Series sales in the United States rose for 16 consecutive months on a YoY basis. In August, it was also the best August month for F-Series sales since 2005.
A key reason for the weakness
Ford attributed its October F-Series US sales decline to the timing of fleet orders. However, the competition for Ford F-Series trucks is increasing. General Motors (GM) and Fiat Chrysler (FCAU) have already started expanding their pickup truck portfolios in the US market.
For the F-Series, the average transaction price was at a record level of $47,300. So far in 2018, the demand for F-Series truck premium models including the King Ranch, Lariat, Platinum, and Limited Super Duty truck variants has remained strong. As a result, the company has been able to improve its overall average transaction price. Premium pickup trucks are sold at a higher price than entry-level pickup trucks and small cars.
Could lower sales be disastrous for Ford?
In 2015, Ford decided to launch new aluminum body variants of its F-Series trucks to improve fuel economy and reduce raw material costs. The move helped Ford revive the F-Series sales in its home market. A consistent weakness in F-Series sales in the coming months could hurt the company’s already weakening profit margins.
In 2017, Ford’s F-series truck sales in the United States were at 0.90 million units—9.3% YoY growth. As a result, 2017 was the best year for F-Series US sales since 2005. Except in April 2017, F-Series sales grew positively in all of the other 11 months in 2017.
In the pickup truck segment, legacy auto companies (XLY) General Motors (GM), Toyota (TM), and Fiat Chrysler (FCAU) compete with Ford F-Series. General Motor’s Chevrolet Silverado, Toyota’s Tacoma, and Fiat Chrysler’s Ram are some of the notable light truck brands in the US market.
Next, we’ll discuss Ford’s US retail and detailed truck segment sales in October.
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