Ford Motor Company

The second-largest American auto company, Ford (F), has been having trouble reviving its overall vehicle sales in its home market for the last few years. An ongoing negative trend in US passenger car demand could help Ford justify its falling car sales. However, consistent year-over-year weakness in its F-series sales could be disastrous for the company.

Why Ford’s F-Series Sales Weakness Could Do Permanent Damage

F-Series sales weakness

In its sales reports, Ford continues to highlight how its F-Series sales have been able to remain above 70,000 units for the last many consecutive months. Nonetheless, sales over 70,000 units per month don’t justify a 5.8% year-over-year drop in its F-Series sales over the last three months. In November, the company sold 72,102 units of F-Series trucks, down 0.9% year-over-year after falling 7.3% year-over-year in October. The timing of fleet orders could be one reason for a decline in Ford’s F-Series US sales over the last three months.

On the brighter side, the F-Series’ average transaction price was near a record $47,000 per truck unit in November.

To compete with Ford’s F-Series, rival auto companies (XLY)(FTXR)(IYK) General Motors (GM), Fiat Chrysler (FCAU), and Toyota (TM) have already announced their plans to expand their trucks portfolios. This is why, while US car demand is on a downward trajectory, losing market share in truck sales could permanently damage Ford.

Upcoming sales data

Ford is expected to release its December US F-Series sales data later this week. Continued weakness in F-Series sales could hurt investor sentiment and pull the stock price lower.

As of December 28, Ford had lost 36.8% year-to-date while GM, TM, and FCAU have seen 17.2%, 8.5%, and 19.2% value erosion, respectively.

Latest articles

Shares of China’s leading search engine Baidu (BIDU) have been on a tear today. The stock gained 7.8% in after-hours trading today to close at $104.22.

Bernie Sanders tweeted his support for legalizing marijuana nationally and expunging past marijuana convictions. How could this impact cannabis stocks?

Today, Canopy Growth (WEED) (CGC) stock saw its lowest point in 2019. The stock opened at $28.3 but fell to $26.5 in the afternoon.

Today, Kroger (KR) and Walgreens Boots Alliance (WBA) announced the expansion of their strategic partnership. Let's look at the details.

Micron Technology (MU) started the mass production of 16Gb DDR4 products using 1z nm (nanometer) process technology. MU has returned over 37% YTD.

Chinese (FXI) tech company Baidu (BIDU) will be announcing its second-quarter earnings results on August 19 after the market closes.