Ford sales executive says market share likely gained in June

igor · July 6, 2006

Ford sales executive says market share likely gained in June
Last Update: 8:48 AM ET Jul 4, 2006

(This article was originally published Monday)

DETROIT (MarketWatch) -- Ford Motor Co. (F) sales analysis manager George Pipas said the struggling U.S. auto maker likely gained market share in June, despite yet another reported sales decline during the month.

Ford's U.S. sales fell 7% in June compared with the same period in 2005, with much of the weakness attributed to withering demand for SUVs. The company's U.S. market share has dwindled in recent years and sat at 17.4% as of June 1, down from 17.9% from the same period in 2005. The company has reported a string of volume declines in recent months even as the overall market remains relatively healthy.

Still, Ford's slide in June may have been smaller than the decline in the overall U.S. light vehicle market, Pipas said. The Ford official said the overall market is seen slipping approximately 9% once all auto makers report auto sales. Pipas said the expected June market share gain at Ford would be the first monthly share increase since August. He said the result helps the auto maker make good on its goal to "slowing the rate of market share decline in 2006."

Ford's top rival General Motors Corp. (GM) is expected to report a significant sales decline later on Monday. Sales at DaimlerChrysler AG's (DCX) Chrysler Group fell 15% in June, while Toyota Motor Corp. sales soared by more than 14%.

Pipas, the sales analysis manager, said Ford's inventory level of 796,000 vehicles as of June 30 is down from the 850,000 vehicles it carried in stock a year ago. However, inventory increased compared with May's level and Ford is now offering generous 0% financing deals in an effort to clear its stock of unsold vehicles on dealer lots.

Pipas said the company has nothing new to announce in terms of incentive programs. Last week, Chrysler announced an aggressive employee-discount-for-everyone plan that mirrors incentive programs offered by Detroit's Big Three last summer. The deals led to a record-setting pace of vehicle sales in certain months, but created a sales drought later in the year as fewer buyers than normal were in the market to buy a car.

Ford's performance in June was largely supported by sales to fleet customers, such as government agencies and rental-car companies. The auto maker increased fleet sales by 5%, while retail sales fell 12%. While fleet sales serve to help move unsold inventory, retail sales are seen as a better indicator of actual demand and often represent more profitable transactions for auto makers.

Shares of Ford closed Monday's abbreviated regular trading session at $6.71, down 22 cents, or 3.2%.

(This article was originally published Monday)

DETROIT (MarketWatch) -- Ford Motor Co. (F) sales analysis manager George Pipas said the struggling U.S. auto maker likely gained market share in June, despite yet another reported sales decline during the month.

Ford's U.S. sales fell 7% in June compared with the same period in 2005, with much of the weakness attributed to withering demand for SUVs. The company's U.S. market share has dwindled in recent years and sat at 17.4% as of June 1, down from 17.9% from the same period in 2005. The company has reported a string of volume declines in recent months even as the overall market remains relatively healthy.

Still, Ford's slide in June may have been smaller than the decline in the overall U.S. light vehicle market, Pipas said. The Ford official said the overall market is seen slipping approximately 9% once all auto makers report auto sales. Pipas said the expected June market share gain at Ford would be the first monthly share increase since August. He said the result helps the auto maker make good on its goal to "slowing the rate of market share decline in 2006."

Ford's top rival General Motors Corp. (GM) is expected to report a significant sales decline later on Monday. Sales at DaimlerChrysler AG's (DCX) Chrysler Group fell 15% in June, while Toyota Motor Corp. sales soared by more than 14%.

Pipas, the sales analysis manager, said Ford's inventory level of 796,000 vehicles as of June 30 is down from the 850,000 vehicles it carried in stock a year ago. However, inventory increased compared with May's level and Ford is now offering generous 0% financing deals in an effort to clear its stock of unsold vehicles on dealer lots.

Pipas said the company has nothing new to announce in terms of incentive programs. Last week, Chrysler announced an aggressive employee-discount-for-everyone plan that mirrors incentive programs offered by Detroit's Big Three last summer. The deals led to a record-setting pace of vehicle sales in certain months, but created a sales drought later in the year as fewer buyers than normal were in the market to buy a car.

Ford's performance in June was largely supported by sales to fleet customers, such as government agencies and rental-car companies. The auto maker increased fleet sales by 5%, while retail sales fell 12%. While fleet sales serve to help move unsold inventory, retail sales are seen as a better indicator of actual demand and often represent more profitable transactions for auto makers.

Shares of Ford closed Monday's abbreviated regular trading session at $6.71, down 22 cents, or 3.2%.