Ford Has Record April Behind Strong Sales Of EVs, SUVs And Trucks
One question I guessed a lot is why Ford got rid of their car line (excluding Mustang). The answer is simple – money. Ford makes far more profit off trucks and SUVs than they did off of cars.
And today Ford released its April sales numbers which show that to be the case. Highlights of the April sales report show some pretty clear trends. Here are some of the highlights:
• Ford’s April retail sales were up 57.1 percent, not only selling above 2020 results, but also up 23.7 percent relative to April 2019 results. Together, retail truck and SUV sales were up 70.1 percent providing Ford Truck and SUV sales with their best April retail sales performance since 2006.
• F-Series retail share expanded 2 percentage points through April of this year in the full-size pickup segment. F-Series retail sales were up 19.7 percent for the month, while beating April 2019 retail sales levels by 9.3 percent.
• Ford electrified vehicle sales produced a new all-time monthly sales record – up 262 percent on new product offerings. Mustang Mach-E sales totaled 1,951, F-150 PowerBoost sales totaled 3,365, while Escape electrified sales totaled 3,695 in April. Electrified vehicle sales totaled 11,172 – up 262 percent.
Related story: Ford has best retail start since 2001.
“Ford’s retail sales not only increased 57 percent over year ago, but also exceeded April 2019 by 24 percent,” said Andrew Frick, vice president, Ford Sales U.S. and Canada. “Strong customer reaction to our newest products, despite tight inventory, confirms our strategy of investing in electrified vehicles, along with trucks and SUVs. In April, we not only beat pre-coronavirus sales numbers from April 2019, but we saw record electrified vehicle sales for the month, along with record April Ford and Lincoln SUV sales. Trucks had their best retail performance since 2008.”
The proof, and vision for the future, was right there in that quote from Andrew Frick: “our strategy of investing in electrified vehicles, along with trucks and SUVs.”
For those upset about the electric Mach-E or the upcoming EV F-150, which will be named Lightning, well you have to understand the future of the industry better. And like it or not, Ford seems to be out there in the lead, or at least near the top, when it comes the profitability of future vehicles.
Ford’s profit per vehicle is up, and here’s why
Another key highlight of the report released by Ford is that new products drove transaction pricing to record levels. Ford transaction pricing in April totaled $43,600 per vehicle. Bronco Sport, turning on dealer lots in just 13 days, produced an average transaction price of $31,800 per SUV – the highest in segment.
Ford’s investment in trucks and SUVs is not only producing greater volume, but replaces sedans like the Fusion, which produced an average transaction price of $22,600 in April 2021.
Ford’s stock on dealer lots
My colleague Marc Stern has reported on the chip shortage that has resulted in delays and new product availability. And certainly this has contributed to an increase in used-car pricing due to basic supply and demand principles.
However, some key information in this April sales report shows that Ford’s gross stock at the end of April remains favorable, relative to some of its competitors.
Ford noted in the report: “Ford’s overall gross stock position going into May was 265,000 vehicles, which is at the higher end relative to the overall industry and stands at 35 days’ supply. This compares to an overall industry with 33 days’ supply.”
Final take: Get on board with Ford’s vision for the future
This just goes to show that Ford is making vehicles that net the company more overall money. We already knew this, but some of the tried-and-true Blue Oval fans can’t seem to accept this or understand this.
Ford Motor Company is in the business to make money by selling vehicles. This means making maximum profit per vehicle. Sadly, this means less “niche” vehicles, more mass-produced vehicles and more electric vehicles. Like it or not, this is the future for all automakers, not just Ford.
As always you get the last word. What do you think about this? Leave me your comment below.
Jimmy Dinsmore has been an automotive journalist for more than a decade and been a writer since the high school. His Driver’s Side column features new car reviews and runs in several newspapers throughout the country. He is also co-author of the book “Mustang by Design” and “Ford Trucks: A Unique Look at the Technical History of America’s Most Popular Truck”. Also, Jimmy works in the social media marketing world for a Canadian automotive training aid manufacturing company. Follow Jimmy on Facebook, Twitter, at his special Ford F-150 coverage on Twitter and LinkedIn. You can read the most of Jimmy's stories by searching Torque News Ford for daily Ford vehicle report.