Ford Sales - June 2022

[ice-capades]

Ford Sales - June 2022

https://media.ford.com/content/fordmedia/fna/us/en/news/2022/07/05/ford-june-sales.html

 

FORD OUTPERFORMS INDUSTRY IN JUNE – SALES UP 31% ON STRONG F-SERIES AND SUV MIX; F-150 LIGHTNING BEST-SELLING ELECTRIC TRUCK IN JUNE AS EV VEHICLE SALES JUMP 77%; LINCOLN SUV SALES UP 44%

 

Ford Sales_2022-06.pdf

 

 

Edited July 5, 2022 by ice-capades
Additional Content

[akirby]

WTF does this mean?

 

Quote

Going into July, both F-150 Lightning and Mustang Mach-E dealer stock is higher than last month, positioning both for a stronger July sales month.

 

[j2sys]

1 hour ago, akirby said:

WTF does this mean?

 

 

 

At the start of June, there were X F-150 Lightning and Y Mustang Mach-E units in stock.

At the start of July, there were X + A F-150 Lightning and Y + B Mustang Mach-E units in stock.

 

Because the month started out with more of these models in stock and ready for sale, they expect higher overall sales volume for the month.

 

Not sure about MME but there were Lightnings being stockpiled before shipment.  If those units were then released to be delivered to dealers in July, inherently sales volume in July would be higher.

Edited July 5, 2022 by j2sys

[akirby]

31 minutes ago, j2sys said:

 

At the start of June, there were X F-150 Lightning and Y Mustang Mach-E units in stock.

At the start of July, there were X + A F-150 Lightning and Y + B Mustang Mach-E units in stock.

 

Because the month started out with more of these models in stock and ready for sale, they expect higher overall sales volume for the month.

 

Not sure about MME but there were Lightnings being stockpiled before shipment.  If those units were then released to be delivered to dealers in July, inherently sales volume in July would be higher.

Let me rephrase the question.

 

How can there be dealer stock on vehicles that are retail sales only?  Or are they counting the pre OKTB Lightnings and in transit retail sales?

Edited July 5, 2022 by akirby

[blwnsmoke]

28 minutes ago, akirby said:

Let me rephrase the question.

 

How can there be dealer stock on vehicles that are retail sales only?  Or are they counting the pre OKTB Lightnings and in transit retail sales?

 

Maybe they mean that more are shipping therefore that will equate to more sales.  Obviously we know they can't count a retail order till it is sold but if Ford knows more inventory is coming.. 

 

They be be playing PR (twist on words) and using the words "dealer inventory" yet it's really "customer orders being delivered".

Edited July 5, 2022 by blwnsmoke

[ice-capades]

24 minutes ago, akirby said:

Let me rephrase the question.

 

How can there be dealer stock on vehicles that are retail sales only?  Or are they counting the pre OKTB Lightnings and in transit retail sales?

 

• Dealers are getting 2 F-150 Lightning's for demonstration purposes, built to Ford specifications. I'd have to look up the details but there are restrictions on when they can be sold, etc.
• Dealers do receive allocation for stock Mustang Mach-E's. My dealership averages 3-6 in stock. Average sales are 3-4 per month including retail ordered units that arrive.  

[j2sys]

53 minutes ago, akirby said:

Let me rephrase the question.

 

How can there be dealer stock on vehicles that are retail sales only?  Or are they counting the pre OKTB Lightnings and in transit retail sales?

 

Retail orders are ordered by the dealer and become part of the dealer's inventory, they're just expected to be held and sold to the customer they were ordered for unless said customer backs out of the sale.  Personally wouldn't try to read too much into the wording. 

[bzcat]

Transit finally had a month over month increase. I think the first one in over a year. Probably a big fleet delivery or a bunch of e-Transit was ok'd to ship.

[jpd80]

3 hours ago, ice-capades said:

 

• Dealers are getting 2 F-150 Lightning's for demonstration purposes, built to Ford specifications. I'd have to look up the details but there are restrictions on when they can be sold, etc.
• Dealers do receive allocation for stock Mustang Mach-E's. My dealership averages 3-6 in stock. Average sales are 3-4 per month including retail ordered units that arrive.  

Thanks for explaining that, always helpful getting your perspective.

Remembering the term mannequins  apply to these vehicles, they are sold to dealerships and registered so the sales count but dealers are not permitted to sell these vehicles for a designated time period.

Edited July 5, 2022 by jpd80

[LoveTaurus]

I compared to the chart from May of 2022, sale number was a bit lower in June than May. 

[rmc523]

I know it's been a weird yoyo for numbers the last few years, but it's been a while since there's been that much green on the charts.  It may be shortlived, but who knows!

 

 

 

 

Trucks comparison for Q2 - Ford is retaining the single nameplate lead, but GM has pulled well ahead overall.

 

 

[akirby]

YTD is still down but the increase in market share is great news despite all the production issues.

[rperez817]

1 hour ago, akirby said:

YTD is still down but the increase in market share is great news despite all the production issues.

 

Definitely. Best of all, Ford achieved that increase in market share with an emphasis on sales quality, not just quantity in June 2022.

• Minimal fleet dumping
• High percentage of sold retail orders
• #1 ranking for overall pickup truck sales
• #1 ranking for BEV pickup truck sales
• #2 ranking for BEV sales overall

[akirby]

So to recap, Ford moving from cars to trucks, SUVs and BEVs was a smart move.

[jpd80]

31 minutes ago, akirby said:

So to recap, Ford moving from cars to trucks, SUVs and BEVs was a smart move.

I find it ironic that Maverick now made in the same low cost Mexican  plant as Fusion is considered more profitable…

[fordmantpw]

26 minutes ago, jpd80 said:

I find it ironic that Maverick now made in the same low cost Mexican  plant as Fusion is considered more profitable…

 

Economies of scale.  The Maverick shares a lot with the Escape and Bronco Sport.

 

Not to mention, they don't have to put $3k on the hood to sell them.

[j2sys]

36 minutes ago, jpd80 said:

I find it ironic that Maverick now made in the same low cost Mexican  plant as Fusion is considered more profitable…

 

Fusion sales were dropping and they didn't want to see where they leveled off.  Whether or not that could've been influenced by improving the product, we'll never know...  Meanwhile, SUV and truck sales are where customer demand and growth lay.

 

As stated, Maverick is largely built out of parts already in use in high volume, both with Escape and the Bronco Sport rolling down the same line.  All Maverick does, then, is increase production scale and thus efficiency at Hermosillo.

 

Also consider that depending on how you wanted the interior optioned, a Maverick can end up costing more than a comparable Escape.

[jpd80]

Fusion sales fell exactly because Ford did a lousy makeover in 2015, straight after that all the high series buyers deserted the new model and yes, they saw the writing back then but don’t think for one moment that there are greater scales of economy with Escape based product even the latest Chinese Mondeo (Fusion)is also on C2. The fact is that Ford chose to move away from cars regardless of the merits of retaining them, having none of them encouraged all buyers to go into Ford’s newer offerings but Ford never really retained many of those lost Focus & Fusion sales. Heck, they’re even calling the successors, Escape and Edge commodity vehicles. It all boils down to image and when better competition builds up in a segment, Ford switches product, that’s exactly why we now have Bronco Sport, Maverick, Ranger and Bronco, products that Mulally would have never entertained a decade ago but are now the desirable four like a new “super segment” that Ford once talked about.

 

Everything is about image and capturing the imagination of younger buying audience who will pay more for what they want…….also some older fans in there too and it is a good combination.

 

and if that new Mondeo was a BEV, Ford would really give the likes of Tesla a run for its money. That’s the kind of thing that Ford and GM could do to outflank other BEV manufacturers 

Edited July 6, 2022 by jpd80

[Chrisgb]

10 hours ago, rmc523 said:

I know it's been a weird yoyo for numbers the last few years, but it's been a while since there's been that much green on the charts.  It may be shortlived, but who knows!

 

 

 

 

Trucks comparison for Q2 - Ford is retaining the single nameplate lead, but GM has pulled well ahead overall.

 

 

Probably wouldn't have made much difference, but MAP has had a lot of Ranger idle time this quarter.

[jpd80]

20 minutes ago, Chrisgb said:

Probably wouldn't have made much difference, but MAP has had a lot of Ranger idle time this quarter.

A lot of a Ranger parts (not just chips)  are sourced from China, the covid shutdown there has really impacted production in Thailand as well as MAP. The impact should subside through the second half of the year but don’t expect much improvement until later in Q4.

[akirby]

Nothing to do with Fusion volume dropping.  Fusions had to compete on price with 8 other nearly identical commodity vehicles which ended up with $4K incentives.  Compared to Bronco Sport and Maverick that people want and have very little direct competition which means little to no incentives even pre Covid.

 

When your net margin on a vehicle is less than $2k a big incentive kills the profit.
 

[jpd80]

27 minutes ago, akirby said:

Nothing to do with Fusion volume dropping.  Fusions had to compete on price with 8 other nearly identical commodity vehicles which ended up with $4K incentives.  Compared to Bronco Sport and Maverick that people want and have very little direct competition which means little to no incentives even pre Covid.

 

When your net margin on a vehicle is less than $2k a big incentive kills the profit.
 

And that’s why I said, when competition builds up in a segment, Ford moves to new vehicles but before that they go stingy cost cutting, drive away all the high series buyers and then have their reason to switch…..

 

Keep in mind that we are now in a very different selling situation where all vehicles are selling without incentives, I think even Camry and Corolla are full MSRP, so al that previous discounting is gone…

 

Looks like Mach E is the new Fusion, selling at break even price……they can’t increase prices this year, too many orders.

Edited July 6, 2022 by jpd80

[rperez817]

35 minutes ago, akirby said:

Fusions had to compete on price with 8 other nearly identical commodity vehicles which ended up with $4K incentives.  Compared to Bronco Sport and Maverick that people want and have very little direct competition which means little to no incentives even pre Covid.

 

Good points akirby. This is another favorable result of "Design Thinking" taking root at Ford. Vehicles like Bronco Sport, Maverick, Mustang Mach-E, and F-150 Lightning are all distinctive in one way or another (quite unlike Ford's recent sedans in the U.S. market), which attracts customers who are more interested in product merit than in the "deal". That results in more satisfied customers and better profitability for Ford.

[akirby]

32 minutes ago, jpd80 said:

And that’s why I said, when competition builds up in a segment, Ford moves to new vehicles but before that they go stingy cost cutting, drive away all the high series buyers and then have their reason to switch…..

 

Keep in mind that we are now in a very different selling situation where all vehicles are selling without incentives, I think even Camry and Corolla are full MSRP, so al that previous discounting is gone…

 

Looks like Mach E is the new Fusion, selling at break even price……they can’t increase prices this year, too many orders.

The difference now is Ford has new better vehicles to replace the bad ones.  That wasn’t always the case plus they were trying to keep plants as busy as possible in addition to decontenting to improve margins.  And not all mfrs can do that especially with trucks, utilities and off road vehicles.

[akirby]

19 minutes ago, rperez817 said:

quite unlike Ford's recent sedans

Fusion was just as unique as all the others, which is to say not very unique at all.  Sedans just don’t offer much opportunity for differentiation and option packages compared to trucks and utes.