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William Maley

July 2015: Ford Motor Company

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FORD POSTS BEST JULY U.S. SALES PERFORMANCE IN NINE YEARS ON STRONG DEMAND FOR ITS NEWEST VEHICLES

  • Total Ford Motor Company U.S. sales up 5 percent last month – its best July since 2006; retail sales up 5 percent
  • Ford F-Series has best July retail sales results in nine years, while still delivering record average transaction pricing; Ford commercial vans post best July sales in 15 years
  • Ford brand SUV sales up 11 percent last month for best July sales performance in 10 years. Sales of new Ford Explorer increase 27 percent, all-new Ford Edge up 17 percent, Ford Escape up 10 percent – an all-time July sales record
  • Fusion achieves best July ever; Mustang has best July performance since 2008
  • Lincoln brand delivers best July sales results in a decade, driven by strong demand for its newest SUVs, which post best July sales since 2001

DEARBORN, Mich., Aug. 3, 2015 – Strong demand for its newest products lifted Ford Motor Company to its best July U.S. sales performance since 2006, with a total of 222,731 vehicles sold last month. Retail sales increased 5 percent.

 

“We continue seeing even stronger demand for our newest products, especially F-150, Explorer, Edge, Mustang and Transit,” said Mark LaNeve, Ford vice president, U.S. Marketing, Sales and Service. “With continued improvement in inventory, F-Series retail momentum continued building in July. Customers truly value the new F-150’s capability, performance and fuel efficiency.”

 

F-Series retail sales are up 13 percent, providing the best July retail results since 2006, even with continued all-time record transaction pricing – up $3,200 versus a year ago.

 

Van sales increased 14 percent last month with a total of 16,090 vehicles sold. The all-new Transit, which posted sales of 8,025 vehicles for July, drove Ford’s commercial van business to 15-year sales highs.

 

Ford brand SUV sales of 67,282 vehicles represent an 11 percent increase over year-ago levels, delivering the best July sales results since 2005 Escape sales increased 10 percent, with 29,253 vehicles sold, representing an all-time July sales record.

 

Explorer momentum continued with 21,361 sales – a 27 percent increase. All-new Edge performance contributed to the increase as well, with sales up 17 percent for July. Edge and Explorer are turning fast on dealer lots at just 18 days and 13 days, respectively.

 

Fusion sales of 25,105 vehicles last month, posted an increase of 5 percent, marking Fusion’s best July sales performance ever. With 8,482 cars sold, Mustang sales increased 29 percent compared to a year ago. Southern California, America’s largest sports car region, continues to drive Mustang performance, with retail sales up 81 percent in July. 

 

Lincoln sales increased 21 percent versus a year ago – the luxury brand’s best July results in a decade. Lincoln MKC was up 60 percent, while the new Navigator saw a 24 percent gain relative to a year ago. The all-new Lincoln MKX delivered a 27 percent increase, turning on dealer lots in just six days.

 

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Is the new MKX on sale now? Selling 7500 between their 3 volume models isn't too shabby. Looking forward to new powertrains in the MKZ when it's refreshed.

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I know higher ATP’s partially explain Ford’s record setting profits in NA last quarter, but one can’t minimize the benefit of reduced complexity too.  So in the light and medium duty segments, Ford really only has the F-150 and SD, not including of course the many bed/cab configurations.  

 

Contrast that same amount to GM whose increased total truck sales come at the expense of having to engineer and build the following:

 

GMC half

GMC medium

Chevy half

Chevy medium

GMC small truck

Chevy small truck

 

So that’s a 3 to 1 ratio

 

 

Obviously there is a lot of shared chassis bits between the redundant brands, but there is also a lot of complexity too.  

 

Not an argument starter, at least not intended as such, but an observation and possible explanation as to why the smaller Ford continuously beats GM in profits.

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Your argument is flawed. As I explained in the GM sales thread, GM only uses two and a half frames for their lineup (the SUVs use a variant of the half-ton frame), plus common drive lines for GMC and Chevy (and Cadillac, for that matter).

Contrast this with Ford's use of three completely different frames, using utterly divergent (huh) body materials, to say nothing of utterly divergent (huh huh huh) body styles.

Advantage: GM. By a long shot.

More likely, Ford's profitably is due to aggressive profit margins in well-negotiated fleet deals, and the most recent numbers not reflecting the recent increases in incentive spending.

Edited by El Kabong
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Far more to adding up complexities in offering redundant brands than just a frame.

But you do bring up a good point…..GM budgets the same solid axle suspension designs for their $100K premium Cadillac SUV, as they do for their entry level work truck (huh indeed). So there is that........

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Your argument is flawed. As I explained in the GM sales thread, GM only uses two and a half frames for their lineup (the SUVs use a variant of the half-ton frame), plus common drive lines for GMC and Chevy (and Cadillac, for that matter).

Contrast this with Ford's use of three completely different frames, using utterly divergent (huh) body materials, to say nothing of utterly divergent (huh huh huh) body styles.

Advantage: GM. By a long shot.

More likely, Ford's profitably is due to aggressive profit margins in well-negotiated fleet deals, and the most recent numbers not reflecting the recent increases in incentive spending.

Which truck gets the half frame? ..I don't want that one.. :yikes:

 

I don't think anybody here is qualified enough to assume where any of these global companies are getting their profits for. Or enough information out there for us to read. I mean all the different cab, bed, driveline variations with just one F150(Silverado/Ram) is actually very mind blowing and obviously every little option and variation will cost a different amount.

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Blew up in my face?

 

Well, OK, if you say so.

 

Any thoughts about your remarks about how I am "blind" regarding Ford truck sales.....yet their production was hampered for months?

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Blew up in my face?

 

Well, OK, if you say so.

 

Any thoughts about your remarks about how I am "blind" regarding Ford truck sales.....yet their production was hampered for months?

 

I hadn't intended on dragging that conversation further, but since you asked, Ford had a massive stockpile of previous gen trucks built to sell during the production downtime. In addition, its been months since the new truck has been on sale, only this past month did they post significant gains and did so with a flood of incentives. Recent months saw losses of 5-10% year over year. So far Ford's billion dollar gamble is working famously for GM.

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Case in point: through April, F150 sales were still up 1% on the strength of previous gen sales combined with the new truck. Back to back to back months of losses put Ford where it is now: boosting incentives to stay competitive. But keep believing halted production back in the winter ruined everything.

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Some facts need to be clarified here.

 

2015 F150 Production stopped for 3 months this year. That's half of their normal production.

The last 2014 that was built was exactly 1 year ago, almost to the day.  

2014 incentives were kept relatively low in that year, for an outgoing model, to balance retail volumes.

2015 is moving off the lots twice as fast as everyone else and AVERAGE incentives are lower than everyone else.

 

So, given all that, if sales are flat at this point, and ATP's are way up, I would suggest Ford is in the drivers seat for a stellar second half.

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Far more to adding up complexities in offering redundant brands than just a frame.

But you do bring up a good point…..GM budgets the same solid axle suspension designs for their $100K premium Cadillac SUV, as they do for their entry level work truck (huh indeed). So there is that........

.GM budgets the same solid axle suspension designs for their $100K premium Cadillac SUV

 

That right there...makes you look like a pansy boy.

1. Cadillac Escalade sales are impressive...it seems nobody cares that is has solid rear axles

2. the fact that the Escalade sells for 100 grand...and the way it sells....its telling that nobody cares it has got solid rear axles...

3. the fact that it is a land yacht SUV the size of a football field and its intentions are to have a smooth ride...which it does...and the fact that the Escalade sells so well...proves that nobody cares that the Escalade has solid rear axles...

4. the fact that the Escalade has no sporty intentions for corner carving....and the fact that the Escalade sells so well...for 100 000 dollars...proves that nobody cares that the Escalade has solid rear axles...

 

The fact that the only idiot on this planet that cares it has solid rear axles is you....proves that there in absolutely no need for an Escalade to have solid rear axles...

 

So you can whine to your momma and cry to your grandma...the Escalade does well in the market place....selling at 100 000 American dollars...it sucks to be you...in other words...

 

 

BTW...I heard a rumor that GM trucks...that would be the General Motors Corporation is outselling the Ford Motor Corporation in truck sales....

 

Now,,,that REALLY sucks to be you....you know...the Ford fanatic that you are...

 

For some reason...this is how I am picturing you in reading those sales figures

 

WTF???

Philly-Phanatic.jpeg

 

Yup...the Philly Fanatic....because you are a Ford Fanatic....a clown in other words...and just as despicable...and loathsome...and cartoonish...

Edited by oldshurst442
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Some facts need to be clarified here.

 

2015 F150 Production stopped for 3 months this year. That's half of their normal production.

The last 2014 that was built was exactly 1 year ago, almost to the day.  

2014 incentives were kept relatively low in that year, for an outgoing model, to balance retail volumes.

2015 is moving off the lots twice as fast as everyone else and AVERAGE incentives are lower than everyone else.

 

So, given all that, if sales are flat at this point, and ATP's are way up, I would suggest Ford is in the drivers seat for a stellar second half.

1.  Yet the lots are full of them, so the production was not needed anyway.

2.  Great, but there are still some out there for sale.

3.  Not when i checked, the incentives were HUGE on he outgoing models to the point where I was steered towards new when lookin a used because the new ones would have been cheaper.

4.  Since when?  last I checked the quickest selling trucks were the Colorado and Canon.  And the high incentives are right in the colume models and have been for months.  If the truck was everything you claim then incentives would not be needed at all..............

5.  highest ATPs belong o GMC, not Ford, so why they are up, they are up for everyone else too FYI. 

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Monthly report out from Erich.  Here are some of the highlights:

 

  • F150 ATP’s increased $2,000 more than industry
  • Commercial fleet sales for F-150 were kept back first half but will be filled 2nd
  • Best SUV sales month in decades, up 11%
  • New Edge is 18 days on lots, with $3,900 higher ATP’s
  • New Explorer is 13 days, and continues climbing over 20k / month
  • Mustang is best selling sports car, continuing domination, w/ $6,500 higher transactions
  • What, no mention of Lincoln Erich???? 

 

 

Behind the Numbers with Erich Merkle: July, 2015

Welcome to the second half!

July was a great month – let’s look behind the numbers. Ford U.S. sales were up 5 percent versus a year ago, making it our best July sales performance since 2006. Our new products are arriving in the marketplace and now providing the lift that we have been talking about throughout our new product transition period. Inventories are still a bit tight, particularly on F-150 and Edge, but are getting better. It’s all about delivering some of the best products available in the industry right now.

So why am I so happy about a 5 percent increase in sales? After all, weren’t GM and Chrysler up 6 percent? Wasn’t Honda up 8 percent, Erich? Here is the other piece to our sales performance. Our average transaction prices were up $2,600 compared to a year ago, relative to an industry that was up $600 overall in the same month. That’s $2,000 more than the overall industry, outpacing all other major automakers for the month. This, along with strong days-to-turn on our newest products, shows that we have a strong advantage over our competition right now.

With inventory building, our F-Series trucks delivered their best July retail sales in nine years, up 13 percent over year ago. Customers love the technology, capability, and fuel economy of the all-new F-150 – and it’s just a great looking truck. What’s even more gratifying is that we increased our sales while maintaining our record average transaction pricing of $44,000 per truck from June. We have more upside with F-150. Dealer inventories will continue to improve, and we will begin filling more commercial fleet orders in the back half of the year.

The SUV segment of the market continues to be really strong, and we are playing a big role. Ford brand SUV sales were up 11 percent in July, giving us our best July SUV performance in a decade. Sales of the new Edge were up 17 percent, with 10,020 vehicles sold. While those numbers are good, Edge can and will do better. As I have said before, we will sell every Edge we can make. We should fully expect

Edge sales to provide more lift in the months to come. Producing them and building our stock is a must. You have 18 days to turn on the Edge and an average transaction price that is $3,900 higher than a year ago. Trust me, we can sell a lot more of Edge.

Explorer sales were up 27 percent in July, with days-to-turn of just 13 days. We sold more than 20,000 Explorers last month, marking only the fourth time in the last 10 years that we reached volume above the 20,000 vehicle mark. Three of these months have occurred this year. And we have the Platinum model coming out very soon so stay tuned.

Escape achieved an all-time July sales record, up 10 percent over last year. We really benefited from the shortened summer shutdown at the Louisville Assembly Plant, which enabled us to improve our stock and produce a new July record for Escape.

Taking a look at our car performance, Mustang sales were up a solid 29 percent. In Southern California – the largest sports car region in America – sales were up a whopping 81 percent, which speaks volumes about the strength of our pony car. It is the best-selling sports car in America this year and is transacting at $6,500 more than a year ago. It’s become the most sought-after sports car in the country. Mustang is the definition of product success.

Fusion had its best July ever with sales up 5 percent. Keep in mind that the overall mid-size sedan segment is down as more and more people move to SUVs. Understanding the plight of the mid-size sedan segment makes Fusion’s 5 percent gain just a little sweeter.

The vans – don’t forget about the vans! They aren’t visual, but when America goes to work chances are good it will be in a Ford van. Our commercial van sales increased 14 percent last month, marking our best van sales month in 15 years. Leading the way is the all-new Transit, which posted sales of 8,025 vehicles for July. How can you not love our vans?

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Mmmmm... PR fluff.

In large font.

Because large font makes everything more shouty and truthtier.

Edited by El Kabong

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Your argument is flawed. As I explained in the GM sales thread, GM only uses two and a half frames for their lineup (the SUVs use a variant of the half-ton frame), plus common drive lines for GMC and Chevy (and Cadillac, for that matter).

Contrast this with Ford's use of three completely different frames, using utterly divergent (huh) body materials, to say nothing of utterly divergent (huh huh huh) body styles.

Advantage: GM. By a long shot.

More likely, Ford's profitably is due to aggressive profit margins in well-negotiated fleet deals, and the most recent numbers not reflecting the recent increases in incentive spending.

Touts a truck line that doesn't have a compact or mid size entry plus the added complexity of Eco-Boost and aluminum (hence the large sum of money Ford spent setting up shop for aluminum) and criticizes the competition for having more choices? Only Wings.

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