Jump to content

October 2015: Ford Motor Company


William Maley

Recommended Posts

DEMAND FOR COMPANY’S NEWEST VEHICLES PUSHES FORD SALES TO A 13 PERCENT GAIN IN OCTOBER; RETAIL SALES UP 13 PERCENT

  • Ford Motor Company total and retail U.S. sales up 13 percent; both had best October performance in 11 years
  • F-Series retail sales increase 12 percent, driving total F-Series sales up 3 percent to their highest October since 2004; commercial vans up 75 percent for best October since 1988
  • Ford-brand SUV sales up 12 percent for the best October since 2004; New Explorer up 30 percent, and all-new Edge up 39 percent
  • Ford-brand car sales up 17 percent, with overall Mustang increasing 121 percent – its best October performance since 2006; Fusion posts best October ever
  • All-new Lincoln MKX posts record October sales

DEARBORN, Mich., Nov. 3, 2015 – Ford Motor Company U.S. sales totaled 213,938 vehicles last month, up 13 percent from a year ago. Retail sales results were up 13 percent with 154,036 vehicles sold – for the company’s best October sales performance since 2004.

 

Retail sales increased across the product portfolio, with cars up 8 percent, with both trucks and SUVs rising 15 percent.

 

“Strong demand for our vehicles provided another double-digit sales increase in October, and Ford vehicles posted all-time record average transaction pricing of $34,600 per vehicle,” said Mark LaNeve, Ford vice president, U.S. Marketing, Sales and Service. “Gains in our truck business were especially strong, with F-Series delivering its fourth straight month of sales gains and its best October retail levels since 2004.”

 

Ford vehicle average transaction prices rose $1,800 versus a year ago – the largest gain among any major automaker.

 

F-Series sales reached 65,500 trucks in October. At 65 percent of F-150 retail sales last month, EcoBoost®-equipped F-150 sales grew 95 percent versus a year ago.

 

Ford commercial van sales totaled 19,274 vehicles for October, with all-new Transit sales totaling 9,361 vehicles – a 75 percent increase in overall van sales for the month and the company’s best October van performance in nearly 30 years.

 

Ford-brand SUVs posted a 12 percent increase overall with 60,786 vehicles sold – driven by the company’s newest products.

 

The new Explorer saw a 30 percent gain, while the all-new Edge achieved an October increase of 39 percent. 

 

Mustang and Fusion performance fueled Ford brand car sales growth in October by 17 percent. Mustang posted a 121 percent increase with 10,096 cars sold, while Fusion posted its best-ever October with 23,668 cars sold.

 

The all-new Lincoln MKX posted its best-ever October sales results with 2,189 SUVs sold, a 10 percent overall gain for the month.

Link to comment
Share on other sites

Nice gains in retail and total. Van sales is incredible. Ford owns commercial segment. Mustang and F series continues to knock it out of the park.  That's what happens when you deliver at or above customer expectations comprehensively, rather than a myopic single view perception of what some believe they care most about.

 

Congrats to Ford.

 

Oh, and they just kicked off their year end sales blitz, biggest in years that will carry through to New Years.  I am a potential new product customer myself and will be looking into it.  

  • Upvote 1
Link to comment
Share on other sites

Speaking of Transit, I've actually seen a lot of them in either box truck form or others the past few weeks. Aaaaaand... WHERE ARE THESE E-SERIES THEY'RE STILL SELLING?!?!? lol

 

Good numbers across the board for Ford, less so for Lincoln.. Hopefully they will eventually just give us a damn RWD Lincoln. One can only dream.

 

Drew,

The Promaster is SO ugly that even a company who only wants the best tool for the job wouldn't want his company's name on the size of that.

Edited by ccap41
Link to comment
Share on other sites

Just noticed Lincoln.  Yeah, status quo for now. Several new products next year should help. 

Oh, and RWD will not really add sales.  Offering it is the right thing to do, and thy will be done, but to expect sales gains because of it, one will be saddened.  

  • Upvote 1
Link to comment
Share on other sites

Just noticed Lincoln.  Yeah, status quo for now. Several new products next year should help. 

Oh, and RWD will not really add sales.  Offering it is the right thing to do, and thy will be done, but to expect sales gains because of it, one will be saddened.  

I know it won't add sales directly.. but it would grab some enthusiasts' attention and possibly just the general public's attention and get some indirect sales.

Link to comment
Share on other sites

Not bad.  i am sure the 10k plus dealers are offering on the hoods of F-series is helping now.  They should have brought the Transit here years ago!   All of the big 3 had fantastic Octobers!

 

Not bad.  i am sure the 10k plus dealers are offering on the hoods of F-series is helping now.  They should have brought the Transit here years ago!   All of the big 3 had fantastic Octobers!

 

Actually if you look at it closely incentives can be actually be part of a solution for maximizing revenue or lowering costs.

 

Simply put, they are gaining more in revenue by offering incentives, that they could without.

 

Sound business strategy. And same of GM. Brand new truck really, with incentives pushing 10k very soon.

 

INCENTIVES aren't bad folks, especially if it maximizes the bottom-line.

  • Upvote 1
Link to comment
Share on other sites

 

Just noticed Lincoln.  Yeah, status quo for now. Several new products next year should help. 

Oh, and RWD will not really add sales.  Offering it is the right thing to do, and thy will be done, but to expect sales gains because of it, one will be saddened.  

I know it won't add sales directly.. but it would grab some enthusiasts' attention and possibly just the general public's attention and get some indirect sales.

 

 

Well, enthusiasts sales are minimal for sure, but Lincoln has that covered sooner than later, and AWD is the key there, not RWD.

  • Upvote 1
Link to comment
Share on other sites

 

Not bad.  i am sure the 10k plus dealers are offering on the hoods of F-series is helping now.  They should have brought the Transit here years ago!   All of the big 3 had fantastic Octobers!

 

Not bad.  i am sure the 10k plus dealers are offering on the hoods of F-series is helping now.  They should have brought the Transit here years ago!   All of the big 3 had fantastic Octobers!

 

Actually if you look at it closely incentives can be actually be part of a solution for maximizing revenue or lowering costs.

 

Simply put, they are gaining more in revenue by offering incentives, that they could without.

 

Sound business strategy. And same of GM. Brand new truck really, with incentives pushing 10k very soon.

 

INCENTIVES aren't bad folks, especially if it maximizes the bottom-line.

 

Not really.  Say you make 11 grand profit at a dealer negotiated price.  If you knock 10k off that price it drives the profit down to 1 grand, Hence you have to sell 11 trucks at the incentive price to make the same amount of profit as if you could sale one at full price.  In any case, they all do it, but he F-150 is the newest of the bunch and to be seeing such lofty discounts is no a good thing.

Link to comment
Share on other sites

 

 

Not bad.  i am sure the 10k plus dealers are offering on the hoods of F-series is helping now.  They should have brought the Transit here years ago!   All of the big 3 had fantastic Octobers!

 

Not bad.  i am sure the 10k plus dealers are offering on the hoods of F-series is helping now.  They should have brought the Transit here years ago!   All of the big 3 had fantastic Octobers!

 

Actually if you look at it closely incentives can be actually be part of a solution for maximizing revenue or lowering costs.

 

Simply put, they are gaining more in revenue by offering incentives, that they could without.

 

Sound business strategy. And same of GM. Brand new truck really, with incentives pushing 10k very soon.

 

INCENTIVES aren't bad folks, especially if it maximizes the bottom-line.

 

Not really.  Say you make 11 grand profit at a dealer negotiated price.  If you knock 10k off that price it drives the profit down to 1 grand, Hence you have to sell 11 trucks at the incentive price to make the same amount of profit as if you could sale one at full price.  In any case, they all do it, but he F-150 is the newest of the bunch and to be seeing such lofty discounts is no a good thing.

 

If I'm not wrong, some of those dealer incentives are at the dealer's expense not Fords. So while some incentives are costing Ford profit(it's arguable that they would sell any at ful msrp) some are costing the dealer profits while Ford walks away with their full asking price to the dealers.

 

Also, every mainstream manufacturer does it and they all do it all the time, not just after the new model year of a new vehicle. If they are showing their heavy discounts and continuing to increase their profits I'm sure the only people concerned about the incentive are the ones on the internet because they're doing juuuuust fine.

Edited by ccap41
Link to comment
Share on other sites

 

 

 

Not bad.  i am sure the 10k plus dealers are offering on the hoods of F-series is helping now.  They should have brought the Transit here years ago!   All of the big 3 had fantastic Octobers!

 

Not bad.  i am sure the 10k plus dealers are offering on the hoods of F-series is helping now.  They should have brought the Transit here years ago!   All of the big 3 had fantastic Octobers!

 

Actually if you look at it closely incentives can be actually be part of a solution for maximizing revenue or lowering costs.

 

Simply put, they are gaining more in revenue by offering incentives, that they could without.

 

Sound business strategy. And same of GM. Brand new truck really, with incentives pushing 10k very soon.

 

INCENTIVES aren't bad folks, especially if it maximizes the bottom-line.

 

Not really.  Say you make 11 grand profit at a dealer negotiated price.  If you knock 10k off that price it drives the profit down to 1 grand, Hence you have to sell 11 trucks at the incentive price to make the same amount of profit as if you could sale one at full price.  In any case, they all do it, but he F-150 is the newest of the bunch and to be seeing such lofty discounts is no a good thing.

 

If I'm not wrong, some of those dealer incentives are at the dealer's expense not Fords. So while some incentives are costing Ford profit(it's arguable that they would sell any at ful msrp) some are costing the dealer profits while Ford walks away with their full asking price to the dealers.

 

Also, every mainstream manufacturer does it and they all do it all the time, not just after the new model year of a new vehicle. If they are showing their heavy discounts and continuing to increase their profits I'm sure the only people concerned about the incentive are the ones on the internet because they're doing juuuuust fine.

 

This is very true and i was just trying to simplify it.  In any case the main problem is that trucks are just too daggone expensive these days. 

Link to comment
Share on other sites

It's hard to explain sales discounts and incentives from just a unit profit basis. There's a whole lot more to it. 

 

I can't even get into explaining it without making a post pages and pages long. Either way, incentives are a cost of doing business, but manipulating them in an objective function to maximize profit is possible. 

 

And profit margins aren't fixed for a single product.

 

Too many people believe that a company's cost scales up the same amount as you increase price. AKA - fixed profit per unit. Not even close.

 

Whatever Ford is doing in the pickup segment, it continues to be something that others follow. It is the segment benchmark, even if it isn't the best outright product.

 

Everyone thinks MSRP is the upper bound for a product. Hardly, some vehicles sell above MSRP. And it's quite obvious that custom orders against vehicles on the lot have much reduced incentives. And internal pricing could really flip deal. $10k off retail might still be $10k of profit. Who knows? MSRP is more of a reference, not a measure of true profit. Like how we use the 3 states of water for the our measure for temperature. 

 

Again, going for the fully-optioned F150 that reaches $65,000 and above, sure, the incentives are there for a reason. But they're still getting massive profit from one of those. Easily one high trim F150 could account for the per unit increase of profit from 3 to 4 lower models.

 

Everyone looks at the incentives and always quotes the maximum. It's so misinformed. And people are very forgetful. The Silverado also had a very early onset of incentive spending. But people forget, based on their priorities.

 

Anyways, Ford continues to be operating efficiently, getting the most use out of its somewhat dated lineup.

Link to comment
Share on other sites

Behind the Numbers with Erich Merkle: October, 2015

 

Our second half story continues to play out, according to plan!

For those of you that have been reading this column since the beginning of the year, we talked in great detail about the second half of the year and the uplift we would receive from our new products. Here we are. October marked our best overall and retail sales performance since 2004, with both up 13 percent for the month.

Our newest products continue to drive our sales and our average transaction pricing. Think for a moment about a 13 percent increase at retail, our best October retail sales performance since 2004 and now add in record average transaction prices. Our average transaction pricing last month hit a record high of $34,600 per vehicle. That’s $1,800 higher than where we were a year ago and the largest gain of any major automaker. How does this happen? It’s not just new products but the quality of the execution of those products. That’s our lifeblood. A well-executed new product generally commands a higher price point, as it is a something people want and they perceive it to be of high value. We see this with the all-new F-150, the all-new Edge and the new Explorer which have increased their average transaction prices by $3,000, $4,300 and $2,800 respectively versus a year ago.

 

Growth came from across the portfolio, with Ford-brand car sales up 17 percent over last year. Mustang sales increased 121 percent, marking the best October performance since 2006. Starting in November, Mustang will be moving into much tougher year-over-year comparisons, as last year we were filling a lot of early orders and pent-up demand for the new model. Don’t be too alarmed if you don’t see these big gains again for a while. Fusion had its best October ever with sales beating last year’s record by 4 percent. Retail sales were up a stronger 8 percent despite the fact that Fusion is competing in a very brutal segment where many car customers are switching over to SUVs. It’s not Mustang-type increases, but Fusion is performing really well in a shrinking segment that is very competitive.

Switching gears to SUVs. . . Ford-brand SUV sales were up 12 percent, making it

our best October since 2004.

 

Sales were driven by the Edge – up 39 percent – and

the Explorer, which was up 30 percent. Remember the average transaction

pricing that I talked about earlier. Edge average transaction pricing was up $4,300

and Explorer was up $2,800. Combine this with the increase in sales and you see

how this is significant.

Edited by Wings4Life
Link to comment
Share on other sites

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.



  • Social Stream

  • Similar Content

    • By David
      Since Ford Motor Company reported a complete Q4 / 2020 fiscal year report with a loss of $2.8 Billion but a doubling of R&D on EVs to $22 Billion from $11 Billion and a $7 Billion for EV Autonomous driving, the auto reporters are asking this very question: Is this a Shot across gm's bow or is it targeted more broadly across the whole industry as everyone wants to take sales away or greatly slow down Tesla.
      Tesla's valuation appears to be based on investors putting money with new technology seems to be driving changes of the future. 
      gm has now committed to moving into the technology camp with a solid date of when new ICE auto's will no longer be produced as the whole portfolio will change over to EV's. Ford also is now committing to this same strategy. This now makes one wonder about the rest of the auto industry.
      Stellantis CEO did an interview with Forbes that has put cold water on Peugeot coming to the US in the near term future as he wants to invest in the existing US name brands and grow their 12.7% market share. He also said that Stellantis has the manufacturing power and EV technology, but getting it into the hands of everyone is the concern at reasonable prices. Stellantis CEO says this is in the hands of the various global governments as he wants cleaner air and believes diesel the dirtiest of fuels will die off before regular petrol and where dictated by governments such as China and Europe will see a faster change over than other countries. Yet with the change in administration in the US, he says this could move the Stellantis brands to move into the full EV camp at a future date.
      Then we have small countries that have decided to make a major change in moving the country into EVs way sooner than other places and killing ICE sales like Thailand. This will allow local Thai startups to compete for the first time with international companies that also do not have anything in the market yet. 
      With a large range of battery plants coming online over the next 18 months, the move to EVs could happen at a pace that took decades for ICE in the early 1900's.
      So this brings this back to the original question, Is Fords Doubling commitment to EV's and moving ICE into the last generation like GM a shot across GM's bow or a shot at the whole industry to say, look at us, we are moving into a Technology driven auto company and our stock should be much higher like Tesla's.
      Currently gm is valued at just under $80 Billion, Ford is valued at $40 Billion, Tesla is valued at $807 Billion, Toyota is valued at $155.5 Billion, Stellantis is valued at $50.5 Billion, Daimler is valued at $71 Billion, BMW valued at $46 and VW is valued at $90.7 Billion and while there are plenty of other auto companies, one has to wonder what Ford is focused on with the drastic change and speeding up of moving to EVs as a complete global portfolio.
      Sound off and discuss how, what, where and when you think this will have it's big affect.
      Charged EVs | Is Ford’s increase in EV investment a shot across GM’s bow? - Charged EVs
      Stellantis CEO Reveals Peugeot U.S. Fate, Job Security, EV Conflict (forbes.com)
      Future Toyotas, Stellantis, batteries and EVs - the week | Automotive Industry Comment | just-auto (just-auto.com)
    • By William Maley
      We've been reporting on Ford's upcoming truck, the Maverick since 2018. The truck would sit underneath the Ranger and become the entry-level model for the brand. Now, we have gotten our best look at what it will look like.
      The Maverick Truck Club forum got its hand on an image showing a prototype Maverick on the line reportedly at Ford's Hermosillo, Mexico plant. Up front, the Maverick borrows some ideas from the Bronco Sport with C-shaped headlights and a horizontal bar splitting the grille. We don't know if Ford is planning to offer any cab configurations aside from the crew-cab seen in the photo.
      Ford did not immediately reply to comment on this when reached out by Roadshow. 
      The Maverick is expected to use the C2 architecture which underpins the new Escape and Bronco Sport. Autoblog speculates there could be two rear suspension setups based on spy shots that show a mule with twist-beam style setup with no rear differential for the front-wheel driver version. A slightly beefier setup might be used for the all-wheel drive version.
      Right now, everyone seems to think that the Maverick could debut as a 2022 model year vehicle.  
      Source: Maverick Truck Club, Roadshow, Autoblog
      Pic Credit: Maverick Truck Club


      View full article
    • By William Maley
      We've been reporting on Ford's upcoming truck, the Maverick since 2018. The truck would sit underneath the Ranger and become the entry-level model for the brand. Now, we have gotten our best look at what it will look like.
      The Maverick Truck Club forum got its hand on an image showing a prototype Maverick on the line reportedly at Ford's Hermosillo, Mexico plant. Up front, the Maverick borrows some ideas from the Bronco Sport with C-shaped headlights and a horizontal bar splitting the grille. We don't know if Ford is planning to offer any cab configurations aside from the crew-cab seen in the photo.
      Ford did not immediately reply to comment on this when reached out by Roadshow. 
      The Maverick is expected to use the C2 architecture which underpins the new Escape and Bronco Sport. Autoblog speculates there could be two rear suspension setups based on spy shots that show a mule with twist-beam style setup with no rear differential for the front-wheel driver version. A slightly beefier setup might be used for the all-wheel drive version.
      Right now, everyone seems to think that the Maverick could debut as a 2022 model year vehicle.  
      Source: Maverick Truck Club, Roadshow, Autoblog
      Pic Credit: Maverick Truck Club

    • By William Maley
      Jim Hackett's tenure as Ford CEO will be coming to a close on October 1st as he will retire from the position. His replacement is Jim Farley, currently Ford's Chief Operating Officer, a role he took on at the beginning of this year. In a press release, Ford said the two will be working together over the next two months on the transition. Hackett will stay on as "special advisor" for some time after.
      “I am very grateful to Jim Hackett for all he has done to modernize Ford and prepare us to compete and win in the future. Our new product vision – led by the Mustang Mach-E, new F-150 and Bronco family – is taking shape. We now have compelling plans for electric and autonomous vehicles, as well as full vehicle connectivity. And we are becoming much more nimble, which was apparent when we quickly mobilized to make life-saving equipment at the outset of the pandemic,” said Ford executive chairman, Bill Ford.
      Hackett became Ford's CEO in 2017 after the ousting of then CEO Mark Fields. His short tenure brought forth some major and controversial decisions such as Ford killing off most of their passenger car nameplates to focus on trucks and utility vehicles; spending $11 billion in electric vehicles by 2022, and the introductions of the Mach-E, 2021 F-150, and Bronco. He has also dealt with a lot frustration from various groups as The Detroit News outlines,
      Hackett admitted that his tenure did cause a fair amount of friction, but said his efforts are starting to show.
      "I aimed for moving ahead versus just moving fast. Could we aim for a longer-arc kind of reward. In this case, for the three years it takes to get products to market, you're starting to see the fruits of our labor."
      Farley, who has been with Ford since 2007, knows he has a tough road ahead. Aside from realizing the various paths laid out by Hackett, he also has to deal with the issues of the COVID-19 pandemic and hopefully launch two of Ford's key product without any issues.
      Source: Ford
      Press Release is on Page 2


      FORD ANNOUNCES JIM HACKETT TO RETIRE AS PRESIDENT AND CEO; JIM FARLEY TO SUCCEED HACKETT AS COMPANY CONTINUES TRANSFORMATION
      Jim Hackett, who has led Ford Motor Company’s transformation since 2017 as president and CEO, has elected to retire from the company Jim Farley, currently chief operating officer, becomes president and CEO of Ford effective Oct. 1. He was also elected to the Ford board of directors. He will work closely with Jim Hackett on the transition over the next two months Seamless CEO transition underscores strength of Ford’s leadership team, succession planning, and company progress over the past three years, Executive Chairman Bill Ford says DEARBORN, Mich., Aug. 4, 2020 – Ford Motor Company today announced that Jim Hackett, who has led the company’s transformation since 2017, plans to retire from the company. Jim Farley has been named the company’s new president and CEO and will join the board of directors, effective Oct. 1.
      Hackett, 65, and Farley, 58, will work together on a smooth leadership transition over the next two months.
      Under Hackett, Ford moved aggressively into the new era of smart vehicles and drove a deeper focus on customers’ wants and needs. At the same time, Ford improved the fitness of the base business – restructuring operations, invigorating the product portfolio and reducing bureaucracy.
      “I am very grateful to Jim Hackett for all he has done to modernize Ford and prepare us to compete and win in the future,” said Bill Ford, Ford’s executive chairman. “Our new product vision – led by the Mustang Mach-E, new F-150 and Bronco family – is taking shape. We now have compelling plans for electric and autonomous vehicles, as well as full vehicle connectivity. And we are becoming much more nimble, which was apparent when we quickly mobilized to make life-saving equipment at the outset of the pandemic.”
      Farley, an automotive leader with deep global experience and a successful track record, collaborated with Hackett over the past three years to develop and execute Ford’s Creating Tomorrow Together plan to transform Ford into a higher-growth, higher-margin business.
      “Jim Farley matches an innate feel for cars and customers with great instincts for the future and the new technologies that are changing our industry,” Bill Ford said. “Jim’s passion for great vehicles and his intense drive for results are well known, and I have also seen him develop into a transformational leader with the determination and foresight to help Ford thrive into the future.”
      Farley joined Ford in 2007 as global head of Marketing and Sales and went on to lead Lincoln, Ford South America, Ford of Europe and all Ford global markets in successive roles. In April 2019, Farley was chosen to lead Ford’s New Businesses, Technology & Strategy team, helping the company determine how to capitalize on powerful forces reshaping the industry – such as software platforms, connectivity, AI, automation and new forms of propulsion. He was named chief operating officer in February of this year.
      Hackett, who will continue as a special advisor to Ford through March of 2021, said the time is right to pass the mantle of leadership to Jim Farley.
      “My goal when I took on the CEO role was to prepare Ford to win in the future,” Hackett said. “The hardest thing for a proud, long-lived company to do is change to meet the challenges of the world it’s entering rather than the world it has known. I’m very proud of how far we have come in creating a modern Ford and I am very optimistic about the future.
      “I have worked side-by-side with Jim Farley for the past three years and have the greatest confidence in him as a person and a leader,” Hackett said. “He has been instrumental in crafting our new product portfolio and redesigning our businesses around the world. He is also a change agent with a deep understanding of how to lead Ford in this new era defined by smart vehicles in a smart world.”
      Said Farley: “I love Ford and I am honored by the opportunity to serve and create value for Ford’s employees, customers, dealers, communities and all of our stakeholders. Jim Hackett has laid the foundation for a really vibrant future and we have made tremendous progress in the past three years. I am so excited to work together with the whole Ford team to realize the full potential of this great company in a new era.”

      View full article
  • Reader Rides

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×
×
  • Create New...