July sales up 9% on new models and Cash For Clunkers .
08-03-09: Ford has been steadily seeing the beginnings of a recovery in the past couple of months. Last week the company reported its first quarterly profit in some time, a break from a string of losses. Today Ford announced its first positive year over year sales increase in two years.
Sales of the Ford brand were up 9% in retail sales, 2% company wide. Given the past 20 months of sometimes double digit losses this is a major change, and one that has the company’s stock prices on the rise. Ford stock was trading in the mid $8.50 per share range as of this writing, up from the $1.01 low it had traded at within the past 12 months. A savvy investor might be making a strong set of coins right now.
While much of the credit for the sales surge is due to the government’s “Cash For Clunkers” program, Ford says it was already on track for a good month before the program kicked in the last week of July. The big sales stars are the Ford Fusion which increased 66% in July, the Mercury Milan at 60%, Ford Escape up 94%, Mercury Mariner 71%, Ford Focus up 44% and even the ranger plussed out with a 65% increase in sales. Hybrids showed an astonishing 323% increase over last July.
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Buyers are seeking out high efficiency cars right now, looking to save money to help with economic challenges and the potential of high gas prices in the future. Even though gas is low right now at about $2.50 a gallon, buyers have not forgotten the gas prices of last year. It appears they are buying their family some insurance against the next rise in gas prices.
Sales trends are also moving toward cars people need for their daily use, rather than extra cars for fun. Consequently sales still remain soft for the new 2010 Ford Mustang, moving only 6686 units, down 37.6% from last July. Larger SUV’s and trucks like the Expedition, Explorer, and F-Series are also still posting negative sales performance.
Ford credits much of their increasingly positive outlook to the blooming fruits of their turnaround program. Stating that they are well on track and not deviating from their plan, they are saving money in various areas of their business, reducing complexities, rolling out new products that people want, and reeling in the level of dealer incentives. All of these items combined result in more sales, higher profits, and better cars all around.
This month the all new 2010 Ford Taurus and Transit Connect cargo vans began showing up at dealerships, which represent the next wave of all new Ford products to help turn the company’s fortunes to the better. Other new models are to debut within the next 12 months as well.
