Click to enlarge.
Ford Motor Company (NYSE: F) today reported May 2022 U.S. sales results of 154,461 units, a decrease of -4.5% year-over-year. Car sales have declined -45% in the same period. During 2022 sales are off more than -13%.
The disappointing results came as the United Auto Workers and Ford leaders announced plans to add more than 6200 new U.S. manufacturing jobs in the Midwest, convert nearly 3000 temporary UAW-Ford workers to permanent full-time status and provide all hourly employees healthcare benefits on the first day of employment.
Ford Motor no longer bothers to hold press conferences covering monthly sales. Yesterday Jim Farley, President and Chief Executive Officer when asked at the Alliance Bernstein Strategic Decisions Conference about Tesla and five other EV companies with a market cap above $20 billion – meaning the market is saying there are at least six credible new entrants – said, “We’re going to see very large consolidation and big changes. I would say new EV companies probably will get simpler and Chinese will become more important…
“The old OEMs absolutely will get consolidated. They’ll be some big winners. Some people that transition, some won’t. Many of the small players cannot afford to make this transition. Many of them are not investing in embedded software and electric architectures, which is the heart of this transition. It’s not motors and gearbox, it’s gateway modules and software that controls the vehicle. The old suppliers will consolidate. And the new suppliers will emerge. A number of new suppliers that I don’t think are fully valued today. Like Mobileye, many, many, many new ones. And then the dealers, which is one of the largest valuations. Many of them are private. So, we don’t see the kind of capital markets value them, but their business will change a lot. And they’ll be a lot of winners and losers and, I believe consolidation. So, if you look at that all, I feel like there’s going to be more consolidation ahead of us, but it will be in pockets,” Farley said.
General Motors yesterday said it will drastically cut prices on its electric Chevrolet Bolt after the Detroit automaker had halted sales for six months following a battery recall. GM is cutting prices on the Bolt by around $6,000 and by as much as 18% for the lowest-price version, which will start at $26,595, down from $32,495. The Bolt EUV will start at $28,195 down from $35,695. “This change reflects our ongoing desire to make sure Bolt EV/EUV are competitive in the marketplace,” GM said in a statement, adding “affordability has always been a priority for these vehicles.”
Ford Motor is of course in the midst of a massive and complicated reorganization that requires optimizing old and new revenue streams where a strategic mistake could be life threatening:
The UAW actions announced today, coming more than a year ahead of 2023 contract negotiations, are part of the company’s Ford+ growth strategy above and include plans for an all-new global Mustang coupe and Ranger pickup for North America, as well as an all-new electric commercial vehicle for Ford Pro customers. Supported by $3.7 billion of investments in manufacturing facilities across Ohio, Michigan and Missouri, the new UAW-Ford manufacturing jobs are expected to result in the creation of an estimated 74,000 additional indirect non-Ford jobs nationally, based on a 2020 study by BCG on the economic impact of F-Series production.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Ford Motor US Sales Drop Again in May. Shakeout Coming?
Click to enlarge.
Ford Motor Company (NYSE: F) today reported May 2022 U.S. sales results of 154,461 units, a decrease of -4.5% year-over-year. Car sales have declined -45% in the same period. During 2022 sales are off more than -13%.
The disappointing results came as the United Auto Workers and Ford leaders announced plans to add more than 6200 new U.S. manufacturing jobs in the Midwest, convert nearly 3000 temporary UAW-Ford workers to permanent full-time status and provide all hourly employees healthcare benefits on the first day of employment.
Ford Motor no longer bothers to hold press conferences covering monthly sales. Yesterday Jim Farley, President and Chief Executive Officer when asked at the Alliance Bernstein Strategic Decisions Conference about Tesla and five other EV companies with a market cap above $20 billion – meaning the market is saying there are at least six credible new entrants – said, “We’re going to see very large consolidation and big changes. I would say new EV companies probably will get simpler and Chinese will become more important…
“The old OEMs absolutely will get consolidated. They’ll be some big winners. Some people that transition, some won’t. Many of the small players cannot afford to make this transition. Many of them are not investing in embedded software and electric architectures, which is the heart of this transition. It’s not motors and gearbox, it’s gateway modules and software that controls the vehicle. The old suppliers will consolidate. And the new suppliers will emerge. A number of new suppliers that I don’t think are fully valued today. Like Mobileye, many, many, many new ones. And then the dealers, which is one of the largest valuations. Many of them are private. So, we don’t see the kind of capital markets value them, but their business will change a lot. And they’ll be a lot of winners and losers and, I believe consolidation. So, if you look at that all, I feel like there’s going to be more consolidation ahead of us, but it will be in pockets,” Farley said.
General Motors yesterday said it will drastically cut prices on its electric Chevrolet Bolt after the Detroit automaker had halted sales for six months following a battery recall. GM is cutting prices on the Bolt by around $6,000 and by as much as 18% for the lowest-price version, which will start at $26,595, down from $32,495. The Bolt EUV will start at $28,195 down from $35,695. “This change reflects our ongoing desire to make sure Bolt EV/EUV are competitive in the marketplace,” GM said in a statement, adding “affordability has always been a priority for these vehicles.”
Ford Motor is of course in the midst of a massive and complicated reorganization that requires optimizing old and new revenue streams where a strategic mistake could be life threatening:
The UAW actions announced today, coming more than a year ahead of 2023 contract negotiations, are part of the company’s Ford+ growth strategy above and include plans for an all-new global Mustang coupe and Ranger pickup for North America, as well as an all-new electric commercial vehicle for Ford Pro customers. Supported by $3.7 billion of investments in manufacturing facilities across Ohio, Michigan and Missouri, the new UAW-Ford manufacturing jobs are expected to result in the creation of an estimated 74,000 additional indirect non-Ford jobs nationally, based on a 2020 study by BCG on the economic impact of F-Series production.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.