Ford Reports Sales in August Slid 6.5%, as Truck Sales Fell
May 18, 2011
DEARBORN, Mich. -- Ford Motor Co. reported that overall sales of cars and light trucks fell 6.5% in August from the year-ago period, much worse than the 5% drop predicted by some analysts. Total vehicle sales fell to 301,306 from 322,141 at the No. 2 auto maker. U.S. car sales slipped to 134,100 from 143,869, or 6.7%, while light-truck sales in the U.S. dropped to 161,549 from 168,918, or 4.3%. Ford blamed the decline in truck sales to a reduction in government sales compared to last August, high levels of competitive marketing activity, and shortages of several popular vehicle configurations, especially affecting the 2012 Ford F-150 pickup. In Canada, Ford car sales rose to 8,590 from 8,170 a year ago. The Canadian division credited the redesigned 2011 Ford Taurus and Mercury Sable with helping to boost sales there. There were 27 selling days in both periods. Sales include cars and trucks built in the U.S., Canada and Mexico for sale in the U.S. Trucks include light trucks only. Also, Ford has established initial North American production schedules for the fourth quarter up 5% over last year's output. Ford projected Thursday that full-year industry sales will be in the range of 15.4 to 15.5 million units, up from the 15.1 million total for all of 2010. On Wednesday, General Motors Corp. said its August sales dropped 8% from the strong levels of a year ago, partly because of weak demand for large sedans and luxury cars, and partly because dealers didn't have an adequate supply of trucks to sell. Chrysler Corp. was the only one of the Big Three auto makers to report a gain, with an overall 6% increase in sales for the month. But Chrysler's gain didn't make up for lagging sales at Ford and GM, as the top two auto makers account for 57% of U.S. vehicle sales. The auto industry's relative softness in August is one factor that the Federal Reserve will weigh as it looks for signs of an overheated economy in deciding future interest-rate moves. Although auto sales were stronger than expected for most of the first five months of this year, peaking in May, analysts say sales have cooled considerably during the summer months.
