Sales Of Ford’s (NYSE:F) F-150 P/U Truck Fell Nearly 9% In June

Sales Of Ford’s (NYSE:F) F-150 P/U Truck Fell Nearly 9% In June

After repeated assurances that sales of Ford’s (NYSE:F) flagship F-150 would rise as production of the new generation model came on, the opposite was true in June. Sales of the F-Series dove 8.9% to 55,171.

FoMoCo total sales for June were higher by 2% to 225,647. So, the F-Series represents 24% of Ford’s overall sales.

Ford management believes that comments on anything other than the P/U’s (pickup’s) poor sales will mitigate the problem.

For instance: F-Series average transaction prices reached an all-time record in June, with average transaction prices moving above $44,000 per truck, or $3,600 higher than last year. The all-new F-150 is turning 2X as fast on dealer lots than the industry average for 1/2-ton pickups, as Ford continues building dealer stocks.

Ford’s argument for a surge in F-150 sales has been simple. The new version is partially made with aluminum, which lightens weight and adds to fuel efficiency.

Ford management has indicated supply constraint will no longer by an issue.

The test of F-150 sales will begin in June and stretch through the Summer. Ford Chief Financial Officer Bob Shanks recently said that the ramp up of F-150 production was complete.

Now that Ford can produce what it believes will meet market demand, it has to prove that the demand will be sufficient to increase sales sharply. The bad news would be if F-150 sales continued to fall, or if Ford has to discount prices to push sales higher.

Have a terrific weekend

HeffX-LTN

Paul Ebeling

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