Ford Motor Co. released its fourth-quarter sales report on Jan. 6. Quarterly sales declined year over year as the coronavirus pandemic forced customers to stay at home and dealerships to close down. The automaker’s results were also weighed down by poor demand for trucks and passenger cars.
Overview
Ford sold a total of 542,749 vehicles in the fourth quarter, down 9.8% from the same period last year. The Michigan-based automaker said sales were adversely impacted by lower F-150 inventories as the production activities came to a halt in March and lasted until-mid May, leading to a decline in production volume.
SUV’s quarterly retail sales were up 9.8% over a year ago thanks to strong demand for Explorer, Expedition and the all-new Bronco Sport.
Lincoln luxury vehicles witnessed a yearly sales increase of 5.3%, at retail, which happens to be its best performance in 17 years. As far as the fourth quarter is concerned, sales were primarily driven by strong performance of Lincoln Corsair, with sales amounting to 8,050 units.
Trucks are a profitable segment for automakers, especially for Ford since the F-Series has been the top-selling pickup in the U.S. for 44 years. F-Series sales totalling a mammoth 787,422 vehicles in 2020 are a testament to the fact.
What’s ahead?
Heading into 2021, Ford expects auto sales to rebound as businesses ramp back up and customers return to their normal range of activities. Additionally, low interest rates and healthy customer savings will have a positive bearing on the demand for cars. However, low customer confidence as a result of rapid unemployment as well as a lack of stimulus checks for furloughed and laid-off workers will have an adverse impact on the demand for cars going forward.
