Ford Reports a Double-Digit June Sales Increase


Ford headquarters. Photo courtesy of Ford.

Ford (NYSE: F  ) has been lighting the sales charts on fire this year and doesn't look to slow down anytime soon. It's set monthly records of sales throughout the year on its Fusion and Escape models while the F-Series has continued to be America's best-selling truck and vehicle. Ford just released its June sales figures, which were up 13% compared to last year, and it continues the positive trend investors were hoping for.

Quick hits 

  • As a whole, Ford was up 13% compared to a year ago, which was its best June since 2006.
  • Its car and utilities sales are up 12% and 8%, respectively.
  • Its truck sales are up 20%, with F-Series posting its best June since 2005.
  • Lincoln's MKZ recorded its best June sales month ever and best quarterly sales ever.
"In June, we continued to see strong demand across the entire lineup," said Ken Czubay, Ford vice president, U.S. marketing, sales and service, in a monthly press release. "We're particularly encouraged by strong retail share gains, especially in coastal markets, where the combination of great design and fuel economy is resonating with customers – including many buying a Ford for the first time."

Digging deeper
Under the Ford brand only, which accounts for the vast majority of sales, cars were up 13.3% compared to last year and offered some surprises. The Fiesta, which typically sells much better overseas, increased a staggering 104% compared to last year.

Ford's Fusion sales came in slightly under last year's sales at 24,313 (down 0.5%), but are still up a very healthy 17.8% for year-to-date sales. One of the reasons for this flat growth in sales is due to the limited production capacity. Recently it had been reported that the plant producing the Fusion is running at 114% capacity and Ford still can't keep enough inventory on the dealer lots. Until extra capacity comes on line, we may see flat sales growth for the Fusion.

Ford's Escape model continues to impress consumers and is being driven off the lots in a hurry. Its sales were only up 0.7% over last year, but still an impressive 28,694 Escapes were sold, its best June ever; it was also Ford's second-best-selling vehicle last month. Escape sales have been impressive all year and are still up a very healthy 23.2% in year-to-date figures.

The biggest winner for Ford and its investors is the ever-popular F-Series. It continues to blow up the sales charts with impressive gains, up 23.6% over last year's June sales and still up 22% in year-to-date sales. This is a critical number to finish off the last month of the quarter, and will definitely boost top-line revenues as well as bottom-line profits when Ford reports its quarterly earnings later this month. It sold over 68,000 F-Series trucks: To put that number in perspective, Ford considers anything above 50,000 a phenomenal month – making this entire year a gold mine for Ford and its investors.


Information from Ford monthly press releases.

It gets even better. The chart below emphasizes why the F-Series will be even more profitable this year as transaction prices outpace the industry.


Information from Automotive News DataCenter.

Bottom line
As you can see, with transaction prices rising faster than the rest of the industry, the F-Series will be very profitable. There is a caveat, though: TrueCar reports that the F-Series had the largest total incentives for the month of June. This shouldn't raise any alarms, for this is a typical strategy considering that rival General Motors (NYSE: GM  ) is currently releasing its redesigned 2014 Chevy Silverado. 

All in all, this caps off another excellent and profitable month for Ford and leaves investors with a huge expectation for a great quarterly report coming up later this month. It also caps off a great six months for an American icon that has had a business turnaround that will be discussed in future business classes across the nation.

Ford is killing it in the U.S. market, but can it replicate that success overseas to become the top global automaker? China is already the world's largest auto market – and it's set to grow even bigger in coming years. A recent Motley Fool report, "2 Automakers to Buy for a Surging Chinese Market", names two global giants poised to reap big gains that could drive big rewards for investors. You can read this report right now for free – just click here for instant access.


Read/Post Comments (5) | Recommend This Article (8)

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  • Report this Comment On July 02, 2013, at 2:00 PM, NineD930thTA wrote:

    So Ford sold 68,000 of their F series trucks yet had the highest incentives in the industry and that shouldnt worry anyone? Really!? Why shouldnt it worry anyone that GMs truck sales increased over 25% with less incentives and their new trucks are sitting on lots less than 10 days with NO REBATES!

    The only thing keeping the F series at #1 is the fact GM has 2 truck brands not just 1 and Fords rebates to move their trucks. Wont matter when the 14 GM trucks are in full force on dealer lots. GM will be moving over 80,000 units between both brands blowing Ford out of the water.

  • Report this Comment On July 02, 2013, at 2:01 PM, NineD930thTA wrote:

    Oh yeah GM said fleet sales dropped 9% last month and sit at around 20% of sales where as Fords fleet sales account for 33% of their total sales each month.

    GM is in a much better position than Ford is. Its all smoke and mirrors Mullaly is pulling and when the smoke clears there will be a huge mess at Ford.

  • Report this Comment On July 02, 2013, at 2:23 PM, spawn44 wrote:

    Ford's bottom line compared to GM makes your argument a mute point, doesn't it.

  • Report this Comment On July 02, 2013, at 2:39 PM, TMFTwoCoins wrote:

    @NineD930thTA

    So I'll go ahead and dispute your entire spew.

    1. Fords highest incentives shouldn't worry you. This is the last model year of its F-150 and it isn't costing much for Ford to maintain -- or in this case continue to increase -- its market share. Ford's NA margins have been consistently strong, and Ford's incentives are also pretty consistent. Not to mention transaction prices are increasing rapidly allowing Ford wiggle room to steal from GM's redesigned 2014 Silverado's thunder.

    2. That's completely false. Can't you do math? Add up the June Silverado and Sierra numbers, they fail to meet the F-Series. They have failed to do so in the last three full years as well.

    3. Speaking of "smoke and mirrors", you note that GM's fleet sales droped 9%. But here's how GM worded it. "Deliveries to retail customers increased 14 percent while fleet sales declined 9 percent due to the timing of customer deliveries. " Notice the "timing of customer deliveries". I haven't had time to dig deeper, but don't expect that 9% to be a trend.

    4. Spawn44 is absolutely correct, look at 1Q bottom lines, you shouldn't talk about GM being in better position than Ford for quite some time. GM is years behind Ford, but is improving.

  • Report this Comment On July 02, 2013, at 2:42 PM, TMFTwoCoins wrote:

    In addition to #3.

    *dropped*, not droped... Also, fleet sales are often looked at as the devil, but in reality it can be good business when dished out correctly between commercial, rental, govt.

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