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Discontinued sedans and tight supplies of the new Explorer hurt Ford's third-quarter sales.
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Ford Motor Company (F 0.02%) said that its U.S. sales fell 4.9% in the third quarter from a year ago, as limited supplies of the all-new Explorer SUV more than offset good sales of several of Ford's other SUVs. Ford's sedan sales continued to decline in the quarter, while its truck sales remained strong.
Year to date through September, Ford's sales in the United States are down 3.5% from the same period in 2018.
The high-performance -- and high-profit -- Ford Edge ST sold well in the third quarter. Image source: Ford Motor Company.
Here are the third-quarter sales results for the six largest-selling automakers in the U.S. market. Overall, U.S. light-vehicle sales were roughly flat in the third quarter versus the year-ago period, according to figures from Automotive News, meaning that Ford's 4.9% decline lagged the market's result.
| Automaker | U.S. Sales: Q3 2019 | Change vs. Q3 2018 |
|---|---|---|
| General Motors | 738,638 | 6.3% |
| Ford | 580,251 | (4.9%) |
| Toyota Motor | 627,194 | (9.9%) |
| Fiat Chrysler Automobiles | 565,034 | 0.1% |
| Honda Motor | 429,214 | 2.4% |
| Nissan Motor | 327,354 | (4.8%) |
The high points:
Sales of Ford's small Transit Connect van jumped 49% in the third quarter. Image source: Ford Motor Company.
The low points:
Ford said that U.S. sales of the popular Explorer SUV fell 48% in the third quarter from a year ago, to just 31,546 vehicles. That follows a steep decline in the second quarter, when Explorer sales were down 37.6% from the year-ago period. What's going on?
What's happening is that Ford is in the process of ramping up production of its all-new 2020 Explorer (and the related all-new Lincoln Aviator) while selling down the last of its 2019 models.
As of Sept. 1, Ford had roughly 40,000 Explorers (a mix of old and new) in its U.S. inventory, down from 62,000 a year prior. We don't have Oct. 1 inventory figures yet, but Ford said that it has now sold down the last of its 2019 models. (A few may remain at dealers, but they're mostly gone.)
There have been reports of some snags in Ford's production process after quality issues with some early production examples -- but Ford is sorting out those issues, and supplies of the new Explorer should rise quickly in the current quarter.
It's an awkward moment for Ford's U.S. product portfolio. The company has discontinued most of its sedan models, but it has just begun rolling out the all-new SUVs that it expects will replace those lost sales. At the same time, FCA and GM are taking advantage of the fact that Ford's vaunted F-Series is now the oldest of the major full-size pickups -- and this is all happening against the backdrop of a U.S. light-vehicle market that might be running out of steam.
For Ford investors, I think the takeaway is that the company is doing fairly well under the circumstances, but we need to remember that the circumstances are a bit tough right now. We'll see how things look when Ford reports its third-quarter earnings on Oct. 23.