Ford Motor Co. (NYSE: F) has good news and bad news for February’s U.S. sales. Its total unit sales rose 10.5% to 174,192. However, sales of its flagship F-series fell 6% to 51,828. It is the second month of decline, and F-series sales are down 9% to 100,531 for the year. Since F-series sales are 30% of Ford’s total, any sign of weakness causes concern.
The F-series has been the best-selling vehicle in America for 42 years. However, it has significant competition from the Chevy Silverado and Ram. Ford offers unusually low financing for the F-150 at a 1.9% APR for 72 months. Some higher-end models do not qualify. However, car financing for most models from most manufacturers across the industry has risen to 5%. Most car companies make money on financing. In a period of high interest rates, Ford’s move is aggressive and not a good sign for its bottom line.
Ford also continues to struggle with sales of its F-150 Lightning, the company’s electric vehicle (EV) flagship. Sales were up but by a minimal amount. In February, Lightning sales were up 93% but only to 2,578. (See the 15 worst-selling electric vehicles last year.)
Ford management has continued to move the company toward what it calls its EV future. As that has stalled, sales of the F-series have become even more critical.
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