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Ford 1st Quarter Sales


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Explorer begins the year as America’s best-selling mid-size SUV on sales of 56,310 vehicles. Q1 retail sales of the all-new Ford Explorer increase 10.5 percent, while ST Explorer retail sales gain 32 percent over year ago. Overall Ford brand SUV sales are down 12.7 percent in Q1.

 

10% increase in retail sales for the quarter with a big uptick in STs (versus Sport I assume since STs weren't out 1Q19).

 

Sounds like a solid double to me on the profit forefront.  Higher prices and more retail sales.

 

Escape also did pretty well.   If you take out a 12% drop due to the Virus Escape would have sold about 55K versus 60K last year.  Again, higher prices and almost the same volume means higher profit margins and more revenue.

 

So much for the "Explorer and Escape are failures" crowd......

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1 hour ago, akirby said:

 

10% increase in retail sales for the quarter with a big uptick in STs (versus Sport I assume since STs weren't out 1Q19).

 

Sounds like a solid double to me on the profit forefront.  Higher prices and more retail sales.

 

Escape also did pretty well.   If you take out a 12% drop due to the Virus Escape would have sold about 55K versus 60K last year.  Again, higher prices and almost the same volume means higher profit margins and more revenue.

 

So much for the "Explorer and Escape are failures" crowd......

 

I guess it depends on how you look at it. The other side of the coin is that Escape is Ford’s only CUV/SUV that suffered double digit losses. It sold less than half of RAV 4’s volume, which was up 16% and was 23,000 units behind Honda CRV. Hopefully Bronco Sport can begin to turn the tide for Ford.

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Q1 usually has a lot more commercial fleet sales so F Series being down about 27K would be a concern for Ford, 

considering GM and Ram truck sales for Q1 are all relative, Detroit 3 should be thankful of the sales they are getting.

 

Mustang surprisingly strong sales considering the current environment, Explorer down about 3,000 but was that

due to Ford delaying roll out of PIU? 

 

I expect the next two quarters will be something to endure rather than look forward to, 

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2 minutes ago, Trader 10 said:

 

I guess it depends on how you look at it. The other side of the coin is that Escape is Ford’s only CUV/SUV that suffered double digit losses. It sold less than half of RAV 4’s volume, which was up 16% and was 23,000 units behind Honda CRV. Hopefully Bronco Sport can begin to turn the tide for Ford.

Toyota also has two plants dedicated to RAV4 production, so it is compelled to keep sales high, even if the economy sours.

I'm not implying that  Toyota is currently  pushing sales with strong incentives but it may come to that.

We also know that Ford likes to charge more/ sell less with newer products, will that work in tough times....

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2 hours ago, Trader 10 said:

Explorer sales look pretty good but a disappointing quarter for F series which was outsold by the GM twins. Fusion holding up pretty well in its last year. 

 

Can't help but think F-150 needs to offer the 7.3 Godzilla V8 to appeal to the buyers shopping only  Dodge RAM and GM because they have to have the biggest V8 - nothing else will do.

Edited by Kev-Mo
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How many small time dealers will survive could be an issue...i am not expecting astronomical drop in sales if we turn the corner within next 3 weeks...of concern is fords market share being taken by the other brands...after initial wave bronc may not be looked upon any different than what is in fords truck lineup now...time will tell...the current product is stale compared to what else is out there

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14 minutes ago, Trader 10 said:

 

I guess it depends on how you look at it. The other side of the coin is that Escape is Ford’s only CUV/SUV that suffered double digit losses. It sold less than half of RAV 4’s volume, which was up 16% and was 23,000 units behind Honda CRV. Hopefully Bronco Sport can begin to turn the tide for Ford.

 

There's no way to spin it other than Ford Escape getting it's butt soundly kicked by Toyota and Honda.  Too bad for a vehicle that was as strong player just a few years ago.

Edited by Kev-Mo
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Ford SUVs were only down 11% but escape was down 20%. That alone shows there is a problem.
 

id also like to see a breakdown by model year of the escape. I’m sure there were quite a few 19’s being sold with big rebates during that quarter too.

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The decline of escape means nothing if the atp is such that ford does not need to move volume (one could argue market share is of more value)...problem is atp is at such a level that ford shortcutted itself....substandard interiors when the guys next door were willing to upgrade and price point product with razor thin profit,  and have the volume to make money..ford cannot do that as they do not have the marketshare (volume) or the brand loyalty..in strong economy atp will work....what we are going thru shows the con to the atp profit/business model....its come to the point the atp crowd does need to scream when rebates are applied to certain models...simply not enuff product can be moved to sustain profit when large rebates are given....other guys are not bound by such a business choice at this time....fairly telling where ford sits financially and the reach out to vw

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1 hour ago, Kev-Mo said:

 

There's no way to spin it other than Ford Escape getting it's butt soundly kicked by Toyota and Honda.  Too bad for a vehicle that was as strong player just a few years ago.


That’s water under the bridge.  You have to look at it compared to last year.  You don’t double market share overnight.
 

And everyone here said it was priced too high so it’s no surprise it sold less.  But let’s assume it’s selling on average for $2k more than the old model.  That’s over $100M additional profit.  Even more if the new one is cheaper to build.  Now add Baby Bronco.
 

Of course they could drop prices by $4K and sell a ton more of them but what would be the point?  

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1 hour ago, snooter said:

The decline of escape means nothing if the atp is such that ford does not need to move volume (one could argue market share is of more value)...problem is atp is at such a level that ford shortcutted itself....substandard interiors when the guys next door were willing to upgrade and price point product with razor thin profit,  and have the volume to make money..ford cannot do that as they do not have the marketshare (volume) or the brand loyalty..in strong economy atp will work....what we are going thru shows the con to the atp profit/business model....its come to the point the atp crowd does need to scream when rebates are applied to certain models...simply not enuff product can be moved to sustain profit when large rebates are given....other guys are not bound by such a business choice at this time....fairly telling where ford sits financially and the reach out to vw

While I believe Ford’s prices may be a little high, Toyota is now heavily leveraged having two plants dedicated to  RAV4. High volume with razor thin profits is the old Detroit sales strategy, one that commits a lot of resources and labor to a profit number that could be achieved by selling fewer a slightly higher prices.


As an example, if you’re only making $1,000/vehicle and you increase the price $1,000/vehicle but only sell half, you’re miles ahead in labor, resources and transport to dealers.

 

Not saying this is the case with Escape but you can see that high sales are not necessarily a good indicator to ROI.

Edited by jpd80
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Not disagreeing, and while every accountant and business model the last 3 years looked like genius level ideas none of them were close to be able to deal with new gold standard being hand sanitizer and tp.  The bottom line is legacy costs for detroit...if those could be absolved and it certainly needs to looked at with current world situation it would put ford on even keel with yota and the others..number of yota plants is meaningless....with TIF and other tax structers being given away for incentive to build it was an easy decision for yota to do so...where they put those plants is another indicator michigan is not the place to build...best to avoid that thinking up there and go to where you are wanted..

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1 hour ago, jpd80 said:

Toyota is now heavily leveraged having two plants dedicated to  RAV4.

 

In North America, Toyota now has 3 plants that assemble the impressively popular RAV4.

  • TMMC Woodstock - dedicated to RAV4
  • TMMC Cambridge - RAV4 production added 2Q 2019. Also assembles Lexus RX.
  • TMMK - RAV4 Hybrid production added in 1Q 2020. Also assembles Avalon, Camry, and Lexus ES.

RAV4 for markets outside North America are assembled at plants in Japan (Takaoka) and China (GAC and FAW).

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