Ford U.S. sales fall 10.3% as F-Series production ramps up

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Ford U.S. sales fall, F-Series ramps

Highlights

Ford's U.S. new vehicle sales fell 10.3% year-over-year in August, marking the eighth consecutive month of declines due to supply disruptions and discontinued models.
F-Series production reached 57,504 units in August, the highest level in two years, as Ford recovers from supplier disruptions and aims to replenish dealer inventory.
Ford's dealer pickup inventory stands at a 40-day supply, below the traditional 75–90 days, with a revised target of 50–60 days amid slow industry demand and a 6% estimated sector decline.

Pickup output recovery and inventory targets

As reported by CNBC, Ford says it is continuing to raise production of its F-Series full-size pickup trucks after fires at aluminum supplier Novelis severely affected output over the past year. The company says an influx of the vehicles is expected to arrive at dealerships over the coming weeks and months.

Ford says F-Series production has increased every month this year to levels in line with, or slightly above, historical norms. F-150 production reached 57,504 units in August, the highest monthly total in two years, according to Ford data.

Dealer inventory remains below typical levels. Ford dealers currently have about a 40-day supply of pickup trucks, roughly half of what the industry has traditionally considered healthy, and the company is targeting a 50-day to 60-day supply versus historical industry levels of 75 to 90 days.

Sales pressure across Ford and the wider market

Ford reports its eighth consecutive month of year-over-year declines in U.S. new vehicle sales in August, with sales down 10.3% from a year earlier. The company says it has been increasing manufacturing above last year's levels to recover lost production and meet delayed demand.

The automaker says sales comparisons are also being affected by the discontinuation of two vehicles earlier this year and by planned lower sales to daily rental fleets. Ford adds that Labor Day, historically a major sales weekend, falls in September this year compared with August last year, making the comparison tougher.

U.S. automakers more broadly are facing slower demand. Ford estimates industry-wide new vehicle sales are down 6%.

Our earlier coverage focused on Ford’s push to revive and expand its defence-vehicle business in Europe, including a bid (with partners) for the UK Ministry of Defence’s next-generation light mobility vehicle programme. The report also outlined Ford’s plan to market military-adapted Ranger trucks across NATO countries as automakers look for additional revenue while their core markets face tightening demand and margins.

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