Ford to announce Q2 sales
Earlier today, Ford (F), the second-largest American auto company, said that it would announce its second-quarter US sales data on July 3. In the first quarter, the company reported a 1.6% YoY decline in its US sales to 590,249 vehicle units.
During the first quarter, Ford’s truck sales rose by 4.1%, and its SUV sales went up by 5.0% on a YoY basis. In contrast, the company reported a massive 23.7% YoY decline in its passenger car sales.
US sales trend
In the last few years, pickup truck demand in the US has outperformed passenger car demand by a wide margin. This demand trend has proven to be positive for mainstream automakers including Ford, General Motors (GM), and Fiat Chrysler (FCAU), as pickup trucks tend to yield far better profit margins for them as compared to small cars. Thus, investors will be closely watching the trend in Ford’s truck and SUV sales when the company releases its second-quarter sales on Wednesday next week. Today at 12:56 PM ET, Ford stock was down 0.8% for the day. At the same time, GM was trading with an 0.8% gain.
Rising competition in the pickup truck segment
While the company’s F-series pickup trucks continue to rule the US market, its competition in the segment is rapidly rising. In the last year, General Motors, Fiat Chrysler, and Toyota (TM) have speeded up their efforts to improve their presence in the US pickup truck segment.
Earlier this month, General Motors announced its heavy-duty pickup truck production expansion plan. On June 13, its president, Mark Reuss, revealed that the company “is investing about $150 million at its Flint Assembly plant, Michigan, boosting production of heavy-duty trucks by another 40,000 vehicles a year,” Reuters reported.