Ford's U.S. Sales Fell 2.9% in First Half Amid Soft Market -- WSJ
July 05 2019 - 2:02AM
Dow Jones News
By Nora Naughton
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (July 5, 2019).
Ford Motor Co.'s U.S. sales slid 2.9% in the first six months of
2019, making it the latest car company this week to report weaker
first-half sales as U.S. demand for new vehicles cools after a
historically strong run.
The No. 2 U.S. auto maker also said Wednesday second-quarter
sales were down 4.1% over the prior-year period, as declines in its
passenger-car and sport-utility business offset continued strength
in the truck market.
Ford is leaning heavily on its U.S. operations to drive profits
and offset losses overseas as it executes an $11 billion, multiyear
restructuring of its global car business. The restructuring
includes closing factories, eliminating unprofitable car lines and
cutting thousands of jobs in an effort to restore earnings
growth.
Ford's car division, which is discontinuing a majority of its
nameplates, fell 22.5% through June. SUV sales slid 2.3% to drive
the overall sales decline in first half of the year.
Truck sales, up nearly 6% for the first half, were the bright
spot for Ford, The rise was driven mostly by a new Ranger pickup
truck that hit dealerships earlier this year.
Sales of Ford's top-selling F-Series truck line slipped 0.6%
through June, and 1.3% in the second quarter. Still, the average
transaction price for the F-Series rose $1,200 in the second
quarter to $47,500 -- about $2,500 above the truck-market average,
according to Ford.
Trucks and SUVs contributed 83% of Ford's total sales in the
second quarter. Sales of the Expedition increased 56% while
Explorer sales were down 20% as redesigned models were just hitting
dealer lots.
While Ford's pickup-truck market share grew in the second
quarter, U.S. Sales Chief Mark LaNeve said volume declines from
outgoing sedans -- a process he said is now in full progress --
were too hefty for the Ford brand to overcome.
Excluding double-digit declines in units sold from Taurus and
Focus, Ford brand sales would have been up 3%, he said.
Among Ford's other dying nameplates, the Fiesta and Fusion
sedans both posted double-digit sales increases as the company
worked to sell down the outgoing models.
The Lincoln brand saw sales increase 1.3% through June, driven
up by SUV sales. Sales of the premium brand's pricey Navigators
fell nearly 2.8% in the first half of the year.
The U.S. auto industry has posted six straight months of sales
declines in the first half, a deceleration that is expected to
continue through the remainder of the year. Analysts expected U.S.
industry-wide sales will fall short of the 17 million mark for the
first time since 2014.
--Mike Colias contributed to this article.
(END) Dow Jones Newswires
July 05, 2019 02:47 ET (06:47 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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