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Ford Sales Report: Hybrid Dominance, EV Challenges, and Market Dynamics

 
Ford Sales Analysis
 
  •  David.Mitchell
  •  
    David.Mitchell  David.Mitchell
     
      
     
     
     

    David Mitchell is a seasoned financial analyst with a specialization in the Motor Vehicles industry. With a robust background in finance and a keen eye for market trends, David has established himself as a trusted expert in navigating the complexities of the automotive sector.

     
 
 
 

Summary

 

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Ford concludes 2023 with a 7% increase in vehicle deliveries in the US.

 

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BEV sales witnessed a 17% uptick while hybrid vehicles surged by 25% compared to 2022.

 

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Despite robust performance, Ford lags behind General Motors and Tesla in the EV market share.

 

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Ford Pro unit stands out, but the electric vehicle segment reports significant losses.

 

Ford Motor Company showcased a resilient performance, marking a notable increase in its vehicle deliveries, particularly in the hybrid segment. However, while the company's strides in the hybrid domain are commendable, its position in the electric vehicle (EV) market presents challenges. This article delves into Ford's sales performance, the dynamics of the EV market, and the broader implications for investors and stakeholders.

 

Ford 2023 Sales Performance

 

Ford's December sales figures revealed a promising end to the year. The American automaker delivered 192,000 vehicles in December, marking a 7% increase from the previous year. Of these deliveries, sales of fully electric vehicles (BEVs) saw a 30% surge, totaling 10,000 units. Impressively, hybrid vehicle sales soared by 60%, reaching nearly 12,000 units for the month.

 

For the entire year, Ford reported delivering close to 2 million vehicles in the US, representing a 7% growth from 2022. The BEV segment witnessed sales of about 73,000 units, marking a 17% increase year-over-year. In contrast, hybrid vehicle sales amounted to approximately 134,000 units, reflecting a robust 25% growth compared to 2022.

 

Ford EV Positioning

 

Despite Ford's commendable performance in hybrid vehicles, it continues to face stiff competition in the EV market. General Motors outpaced Ford, securing the second-largest EV maker position in the US, trailing only behind industry titan Tesla. While Ford retained its second-place position from 2022, General Motors delivered 75,585 electric vehicles in 2023. In comparison, Tesla's specific US delivery figures remained undisclosed, yet its dominance in the market remains palpable, with estimates suggesting sales nearing 600,000 vehicles.

 

Ford's EV sales narrative presents a mixed picture. The F-150 Lightning, an all-electric pickup truck, witnessed a 50% growth, recording sales of over 24,000 units in 2023. This all-electric variant constituted approximately 3.2% of F-Series sales, marking a 2.4% increase from the previous year. Conversely, sales of the Mustang Mach E, another key EV offering, experienced a modest 3% growth, amounting to around 41,000 units.

 

EV Market Trends and Inventory Dynamics

 

The broader US EV market experienced significant growth in 2023, with BEV sales surging by approximately 45%, reaching 1.1 million units. However, this growth rate represented a deceleration compared to the 65% growth witnessed in 2022. A critical indicator of market dynamics is the inventory-to-sales ratio. By the end of the third quarter, EV inventory surpassed 100 days of sales, exceeding the 70 days of new car sales inventory. This slowdown compelled Ford to recalibrate its EV-related expenditures and navigate production interruptions.

 

Financial Insights: Ford Quarterly Performance

 

Ford's financial performance for the third quarter showcased a deviation from analysts' expectations. The company reported earnings per share of 30 cents on revenues amounting to $43.8 billion. This figure fell short of analysts' projections, anticipating earnings per share of 46 cents on revenues of $43.9 billion. Despite these figures, Ford's Ford Pro unit emerged as a standout performer, generating an operating profit nearing $1.6 billion, accompanied by a 12% profit margin.

 

Contrastingly, Ford's traditional car business, denoted as Ford Blue, recorded earnings of approximately $1.7 billion, translating to a 7% profit margin. Notably, the company's electric vehicle business segment, termed the Model E, reported concerning losses. With sales of 36,000 vehicles, the segment incurred a loss of $1.3 billion, equating to a staggering $36,000 per vehicle. This loss trajectory was consistent with the second quarter, where the electric vehicle unit suffered losses amounting to $1.1 billion from sales of 34,000 vehicles.

 

Conclusion

 

Ford 2023 sales performance underscores its competitive resilience, particularly in the hybrid vehicle segment. However, the company's EV endeavors present challenges, with General Motors and Tesla maintaining dominant positions. Investors must monitor Ford's strategic realignments, especially concerning its electric vehicle segment's financial viability. While Ford continues to innovate and navigate market dynamics, its EV trajectory warrants vigilant scrutiny, shaping future investment decisions.

 
 
 

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Please note that the article should not be considered as investment advice or marketing, and it does not take into account the personal data and requirements of any individual. It is not a substitute for the reader's own judgment, and it should not be considered as advice or recommendation for buying or selling any securities or financial products.

 
 
 
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