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Ford Motor Company July 2015 Sales Results


robertlane

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It's not about rooting for one company against others, this is about showing how a better managed company

can sell less products than a traditional competitor and consistently keep more money quarter after quarter.

 

It's an example of how we must look at all sides of the ledger, not just sales or total revenue.

Edited by jpd80
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Comparing North American results...

Sales:
GM 965K
Ford 816K

Revenue:
GM: $26.5 Billion
Ford: $23.3 Billion

EBIT:
GM: $2.8 Billion (10.5%)
Ford: $2.6 Billion (11.1%)


So basically,
GM's Nth American Earnings Before Interest and taxes was $200 Million more than Ford Nth America
but in order to achieve that, GM had to sell 149,000 more vehicles than Ford Nth America.

Hmm, that leads to average transaction price for Ford being a little higher closing the deficit:
GMNA $26.5 Billion divided by 965,000 sales = ~$27,461 per sale (Average only)
FNA $23.3 Billion divided by 816,000 sales = ~$28,533 per sale (Average only)

Not picking a fight here, just simply showing how slightly higher Average Transaction Prices
are allowing Ford to stay in touch with GM's Nth American financial result with much lower sales.
Let's hope this puts the misconception of Ford and "low profit fleet sales" to bed...

Two quotes from Autonews regarding Ford's performance in Nth America:

 

And, most notably, it managed that gain without any additional help from the redesigned F-150, which didn’t reach full production until early June. Lower sales volumes and costs related to launching the truck offset the benefits of higher transaction prices in the quarter, executives said.

“F-series did not positively contribute to the bottom line in the second quarter because it was still in launch phase,” CFO Bob Shanks said on a conference call with analysts and reporters.


 

Ford said its North American pretax profit of $2.6 billion was helped by $526 million from higher prices and a $219 million reduction in incentive spending.

“We were kind of getting the best of both worlds at the same time,” Shanks told reporters at Ford headquarters.




All interesting stuff, well done to both companies..
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Ford is killing it in vans... those are amazing numbers for both Transit and Transit Connect.

 

Edge numbers will start to trend up now that the new model supplies are getting better.

 

Meanwhile, the car business is flat... I think the mid cycle update of Focus was too subtle and Ford missed an opportunity to get a jump on the new Civic next year. 1.5 EB should have been part of the North America mid cycle update.

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It's great to see both MKC and MKX near 2,500 units. Hopefully they can keep gaining momentum. Our local dealer got a couple in recently (both already gone as far as I could tell) and they looked fantastic. It was my first time seeing them in person. I only drove through the lot and didn't drive them, but I was impressed. I hope to drive one at some point - or do the Date Night if they put the MKX into the program. Here's one of the ones I saw.

 

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Some important F150 facts:

 

1. Inventory is up to just under 90K or about 2K+ from the previous month's end inventory.

2. ATP was $3,200 higher than last July.

3. Incentive spending was about $2,000 less on average than Silverado.

 

This was a great month for Ford. Looking forward to higher F150 sales and inventory levels over the next few months. Barring a major meltdown in the economy, Q3 should be another record quarter for Ford given the blazing sales of its higher profit vehicles like F150, Explorer, Edge and Mustang.

 

It's amazing how the F150 $10K incentive story ran all over the place and in the end, GM out spent Ford by a fairly large margin.

Edited by iamamultitasker
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The new Expedition can't come fast enough. The refresh sure hasn't helped.

 

Weird how they tanked for July. They were up around 4,000 in June.

 

On the flip side, the refresh has helped the Navigator.

 

Either way, I'm sure Ford is happy given how minor of a refresh is and that it's just a placeholder for the new models.

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Weird how they tanked for July. They were up around 4,000 in June.

 

On the flip side, the refresh has helped the Navigator.

 

Either way, I'm sure Ford is happy given how minor of a refresh is and that it's just a placeholder for the new models.

 

Yeah, I thought they had been up the last couple months. If gas prices fall as I'm hearing, the '17 could see a huge increase in Expy sales.

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Fusion sales up, but according to 'know it all' analysts [on Tabloid, click baiting, car sites], "sedans are dying" and "everyone will drive an SUV by year 2018, because of the high seating!!!"

 

Also, Focus is only down 4%, not as bad as the Tabloids say "Slow selling Focus production moving to MEX". Slow selling my $#$#!'

But according to some, it should be "completely redesigned every 5 years like clockwork, as Honda does [not really]"

 

Explorer sales way up and according to some other "know it alls", this vehicle is "dated" and "on a loser platform" and "should go back to BOF now!" or else!

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The 31% YTD sales loss On the Taurus should be a good indication that the car is in serious need of a update/replacement.

It still outsells the Buick Lacrosse most every month, totally outsells the Nissan Maxima and Hyundai Azera/Genesis by huge numbers and is close on YTD sales with Chrysler 300 for 2015. It outsold the 300 in 2014. Taurus was the top selling large car in Canada in June. Not bad for a 6 yr old unchanged body style. I would like to see the actual breakout numbers on the Consumers Report love child Chevy Impala. GM refuses to separate it from the fleet Impala.

Edited by bdegrand
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Killing off the Taurus would be completely asinine with it platform mate, the Continental being tooled up in Flat Rock and maybe at best, selling 25-35K a year. The math doesn't work, not to mention that moving it to the CD4 would make it roughly 70-80% the same as the Fusion, increasing profits on it. The Taurus would be more or less a Fusion XL, just like the Avalon and ES350 are the XL model of the Camry.

The Taurus can sell about 75-100K a year with no problem, that would be a nice increase to the CD supersegment with the Edge, Fusion, MKZ and MKX

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My concern is Mustang. It's starting to lose its momentum and barely outsold the Camaro in July.

Mustang is doing fine. Well, more than "fine", it's doing great!

Last month, Mustang sales were up 29% year over year, AND average transaction price were up $6500! So there's plenty room to maximize profit, or optimize volume/profit mix, whichever way they choose to go.

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Just a few quick random thoughts after looking at the latest sales numbers for July... Fiesta & Focus numbers year-to-date better than expected although July Fiesta numbers troubling. C-MAX sales continue downward spiral. Fusion OK but not up to potential. Taurus numbers troubling with model in desperate need of major overhaul. Mustang nationally good but should be even stronger. Escape doing well and could do even better with more inventory. Edge numbers look good but there's still very little 2015MY Edge inventory available that hasn't been affected by the water leak recall. Expedition's so called refresh not producing much in the way of sales and needs a major redesign to be competitive which it hasn't been in a lot of years.

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