Incentives of $3000 on the Ford Escape?
Ford Motor Company U.S. sales for April totaled 204,651 vehicles – a -4.7% decline. Only truck sales grew at +1%. Fleet sales declined as well – down 8.6% with sales of 67,602 vehicles.
In the face of disappointing or mixed results, Ford is pointing to its overall transaction prices that are almost $4,000 higher than the industry average, at $36,300 per vehicle. This of course is largely as the result of the F-Series with 12 straight months of year-over-year sales gains. (Monthly Sales Reports Die as GM Shifts to Quarterly Updates). However, a supplier fire will shut down F-150 production on Thursday.
Nonetheless retail sales declined -2.6%, and Ford has regional incentives on trucks of up to $3000 – the Escape (the fasting growing global segment the compact crossover SUV), Edge, Expedition, Explorer. As has been the trend for years, Ford is in trouble in the car segment with sales off -15% compared to April of 2017, and -14% year-over-year. Focus has up to $4000 cash on the hood right now in some markets.
“The industry continues to operate at historically strong levels” says Mark LaNeve, Ford vice president, U.S. Marketing, Sales and Service. “The market continues to strongly favor well-equipped SUVs and trucks and our F-Series and new Expedition, and Lincoln Navigator are capitalizing on this generational shift.”
Well, yes, but in a global business gigantic trucks are not saleable elsewhere, and it is becoming increasingly difficult with them to meet emission and fuel economy regulations that are tightening everywhere. Ford spears to be a three-legged stool with the car leg chopped off.
