Ford truck, SUV sales fell further last month
Sales of Ford trucks and sport utility vehicles sagged again in March by double digits. Meanwhile, growing sales of the Focus compact car shed light on increasing consumer demand for smaller, more fuel-efficient vehicles.
Overall, auto sales last month were the lowest since March 1993, as U.S. new-car buyers pulled back from rising gasoline prices, tighter credit markets and a weak economy.
Ford foresees an even tougher second quarter, said Jim Farley, group vice president for global marketing and communications.
“I would like to tell you the worst is behind us,” he said. The second quarter “may be the most difficult of the year.”
General Motors and Chrysler led the downward sales trend with a 19 percent sales drops in March, followed by Ford’s 14 percent decline compared to a year earlier.
Toyota, Nissan and Honda reported declines of 10 percent, 4 percent and 3 percent, respectively.
The North American sales outlook for the entire industry for the year could dip as low as 15 million vehicles, Ford executives said.
F-Series truck sales declined 24 percent and Explorer sport utility vehicle sales fell 15 percent, the automaker reported.
Ford sold 54,465 F-Series trucks last month, compared to 71,482 in March 2007. Buyers continue to bypass the Explorer in search of more fuel-efficient vehicles, with the SUV dropping to 10,969 sold in March, down from 12,876 in last year’s period.
Ford’s Louisville plants manufacture the Explorer and F-Series 250 and larger trucks.
Those results are even starker when compared to March 2006, with F-Series truck and Explorer sales plummeting about 35 percent each since then.
Viewed another way, trucks and SUVs account now for 30 percent of Ford sales, compared to 50 percent in 2004, Farley said.
“That is a wholesale change,” he said. “Frankly, this shift puts a lot of pressure on our market share.”
The change is apparent across the automobile market, said Jesse Toprak, chief of industry analysis at Edmunds.com.
Still, with rising sales of the Focus, Ford’s lone entry in the small-car market, and increasing popularity of the Edge, the Escape and other crossover SUVs, Ford is maintaining its 15 percent market-share goal for 2008, Farley said.
Ford continues to enjoy decent sales of the Edge, up 35 percent in March to 13,508 from 10,915 one year ago.
The Focus also appears to be getting traction among buyers looking for a small vehicle for price, fuel economy or both. Ford reported Focus sales rose 36 percent in March to 21,168.
Still, Ford would do well to broaden its small-car offerings beyond the Focus, Toprak said.
“Honda and Toyota have always had quite a few selections in every category,” he said. “That is truly the whole idea of going after the niche markets, to have a car for any customer, in any income bracket, in any kind of size.”