On Thursday, Ford Motor Company announced a significant 13% increase in its US vehicle sales for the month of August, as interest in hybrid and electric vehicles continues to rise. The automotive giant reported total sales of 182,985 vehicles, a notable increase from the 161,300 sold during the same period last year.
The shift towards environmentally friendly options is evident, with hybrid vehicle sales climbing by an impressive 50%, reaching 16,394 units. Additionally, sales of electric vehicles (EVs) surged by 29%, totaling 8,944 units, showcasing the growing consumer preference for sustainable options. Internal combustion engine vehicle sales, while still significant, experienced a more modest growth of 9.9%, bringing the total to 157,647 vehicles sold. In an evolving automotive landscape, Ford recently announced plans to cut spending on pure EVs, a strategy that may cost the company as much as $1.9 billion.
CFO John Lawler emphasized the company’s commitment to generating long-term value while navigating shifting market dynamics and increasing consumer demand for hybrids. "We're committed to creating long-term value by building a competitive and profitable business," Lawler stated. During August, sport-utility vehicle (SUV) sales saw a year-over-year increase of 14%, totaling 76,810 units.
Meanwhile, truck sales rose by 12%, reaching 103,011 units. The surge in car sales was particularly noteworthy, with a dramatic 55% increase leading to 3,164 sales. Particularly impressive were the sales figures for the Ford Explorer SUV, which nearly doubled to 16,893 units. Additionally, the F-150 Lightning electric pickup experienced a notable boost, selling 2,654 units compared to 1,018 in the previous year.
The F-Series trucks grew by 12% in sales, while the Ranger model saw an astonishing 174% increase. Conversely, sales for the Transit Connect, Transit, and E-Series trucks faced declines, with Ford Edge SUV sales dropping by 54%, and Expedition experiencing an 18% fall. However, Ford’s shares saw a decline of 2.1% in Thursday’s late-afternoon trading, reflecting some investor concern amidst these shifts.
The company's year-to-date US vehicle sales as of August have seen a 4.3% year-over-year increase, totaling approximately 1.4 million units. Back in late July, Ford reported second-quarter earnings that fell short of Wall Street expectations due to elevated warranty costs and various expenses. In light of these developments, the company announced plans to significantly boost production of its F-Series Super Duty pickup trucks, investing around $3 billion at its Oakville facility in Canada to meet growing demand..