New-vehicle retail sales for July 2022 are expected to decline when compared with July 2021, according to a joint forecast released today from J.D. Power and LMC Automotive. Retail sales of new vehicles this month are expected to reach 988,400 units, a 10.8% decrease compared with July 2021 when adjusted for selling days. July 2022 has one less selling day compared with July 2021. Comparing the same sales volume without adjusting for the number of selling days translates to a decrease of 14.1% from 2021.
Total new-vehicle sales for July 2022, including retail and non-retail transactions, are projected to reach 1,159,700 units, a 5.7% decrease from July 2021. Comparing the sales volume without adjusting for the number of selling days translates to a decrease of 9.2% from 2021. The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to be 13.7 million units, down 0.9 million units from 2021. Continue reading
Ford Motor Posts Good Earnings But Weak Net Income
Ford Motor (NYSE: F) late today said that during Q2 of 2022 it had revenue of $40.2 billion because of a 35% increase in wholesale shipments together with “favorable pricing and vehicle mix.” Operating cash flow was $2.9 billion and adjusted free cash flow was $3.6 billion, with automotive EBIT of $3.3 billion. Ford ended the quarter with $29 billion in cash, $45 billion in total liquidity.
However, Ford’s net income was $667 million, a margin of 1.7%, which included a mark-to-market loss of, gulp, $2.4 billion on Ford’s stake in Rivian. Ford is also in the process of slashing costs under its latest restructuring plan, but refused to comment on pending job cuts, which are being reported by Bloomberg as around 8000 white collar positions in a bid to cut $3 billion in costs, other than to say there are too many people. Continue reading →