Ford Rides Biden Administration’s Economic Recovery Surge and a Record April SAAR to a Good Sales Result

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Ford Motor April US retail sales were up 57.1%, not only selling above 2020 April results, but also up 24% compared to pre-Covid pandemic April 2019 results. Together, retail truck and SUV sales were up 70% providing Ford Truck and SUV sales with their best April retail sales performance since 2006. Morgan Stanley said April’s SAAR – seasonally adjusted annual rate – of light-vehicle sales set a record high of 18.5 million units.

The Ford F-Series retail share expanded 2 percentage points through April of this year in the full-size pickup segment. F-Series retail sales themselves were up 20% for the month, beating April 2019 retail sales levels by 9.3%. Ford Brand SUVs posted higher April Sales on new Bronco Sport sales. Even Lincoln SUVs posted record April retail sales across the board in April, with a total of 9,943 SUVs sold.

New products and external market conditions – such as soaring used car prices – had Ford transaction pricing at record levels, with a 94% mix of trucks and SUVs. Ford transaction pricing in April totaled $43,600 per vehicle. Bronco Sport, turning on dealer lots in 13 days, produced an average transaction price of $31,800 per SUV – the highest in segment it appears. Mustang Mach-E is turning in 4 days on dealer lots and transacting at $45,800. Ford’s investment in trucks and SUVs is not only producing greater volume, but replaces sedans like the aging Fusion, which produced an average transaction price of $22,600 in April 2021.

Ford’s gross inventory at the end of April remains favorable relative to competitors, according to Ford – a debatable assertion since it also signals a lack of flexibility and response in trimming what are non-performing assets. Ford’s overall gross stock position going into May was 265,000 vehicles, which is at the higher end relative to the overall industry and stands at 35 days’ supply. This compares to an overall industry with 33 days’ supply. AutoInformed’s view is that the industry needs to reduce inventory with responsive, flexible policies and not boast about returning to former levels.