[ad_1]
Ford F-150 Lightning at the 2022 New York Auto Show.
Scott Mlyn | CNBC
DETROIT – Ford Motor on Tuesday said its third-quarter sales rose about 16% compared with a year earlier, despite a larger-than-expected drop in September.
The Detroit automaker, which reports sales monthly, said it sold 142,644 vehicles last month, an 8.9% drop from a year earlier. The decline caused the automaker to miss the quarterly sales expectations of Cox Automotive and Edmunds, which forecast gains of 19% and 17.8%, respectively.
Ford stock was up about 7% by midday on Tuesday, outpacing the broader market’s gains. The automaker’s crosstown rival, General Motorshas also increased by almost 7%.
New vehicle demand “remains strong” with retail orders “expanding rapidly,” according to Andrew Frick, Ford vice president of sales, distribution and trucks — despite rising interest rates and fears in an economic downturn or recession.
Ford’s quarterly sales beat the industry, with auto analysts predicting a decline of less than 1% from a year ago. Automakers are constantly dealing with supply chain issues, from semiconductors and wire harnesses to smaller parts such as vehicle and company logos.
Economic and supply chain issues caused Cox Automotive last month to lower its 2022 forecast of new vehicle sales to 13.7 million, representing a decline of more than 9% from 2021 and the lowest volume in a decade.
Ford’s auto sales rose in the quarter, but fell about 4% compared with the second quarter, as the company dealt with supply chain problems.
Ford’s September sales report came weeks after the automaker told investors that parts shortages affected about 40,000 to 45,000 vehicles, mainly high-margin trucks and SUVs, that have not reaching dealers. The company also said at the time that it expected to book an additional $1 billion in unexpected supplier costs in the third quarter.
Sales of Ford’s profitable F-Series pickups fell 27% last month from September 2021, contributing to a roughly 13% decline in the third quarter. The company sold 8,760 models of its all-electric F-150 Lightning pickup through September, including 1,918 vehicles last month.
Total sales of Ford’s 2022 electric vehicles were over 41,200 units through September. Most of the sales were Mustang Mach-E crossovers, which were up 49% compared to last year to more than 28,000 units.
Year-to-date sales of all Ford vehicles, including its Lincoln luxury brand, totaled more than 1.38 million units through September, a 1.2% decline from a year ago.
[ad_2]
Source link