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Feb. 2007 Sales: FoMoCo


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FORD'S FEBRUARY SALES OFF 13%; DAILY RENTAL SALES DOWN 30%

http://media.ford.com/article_display.cfm?article_id=25526

* Ford's February sales totaled 211,150, down 13 percent compared with a year ago.

* Lower sales to daily rental companies (down 30 percent) account for about one-half of the decline.

* Sales to retail customers were down 8 percent.

* Ford's estimated retail market share in February is 13 percent -- maintaining a consistent level since June 2006.

* Demand continues to grow for new mid-size sedans (Ford Fusion up 46 percent compared with a year ago, Mercury Milan up 22 percent and Lincoln MKZ up 21 percent) and new crossover vehicles (Ford Edge up 43 percent compared with January and Lincoln MKX up 38 percent).

* February inventories were 175,000 units lower than a year ago.

* Ford announces second quarter North American production plan.

DEARBORN, Mich., Mar. 1 - Ford Motor Company's February U.S. sales declined 13 percent compared with a year ago. Sales to daily rental companies were 30 percent lower than a year ago as the company continued its planned reduction in this market.

The company's February sales totaled 211,150, compared with 244,021 a year ago. Lower sales to daily rental companies (down 16,000 units) accounted for about half of the decline. Sales to individual retail customers were down 8 percent compared with a year ago.

The company estimates retail sales for its Ford, Lincoln and Mercury brands were 13 percent of industry-wide retail sales in February. The company's share of the U.S. retail market has been consistent at approximately 13 percent since June 2006.

“Our objective is to deliver more of the products that people want and, in doing so, stabilize retail share," said Mark Fields, Ford’s President of The Americas. “We're encouraged by the results we have achieved over the past several months. O ur new products and our initiatives to strengthen our brands are starting to pay off."

Consumer demand continues to grow for Ford's new mid-size cars and crossover utilities (CUVs). In February, Ford Fusion sales were up 46 percent compared with a year ago, Mercury Milan sales were up 22 percent, and Lincoln MKZ sales were up 21 percent.

February marked the second month on sale for the company's new crossover utilities – the Ford Edge and Lincoln MKX. Edge sales were 7,977 (up 43 percent compared with January) and Lincoln MKX sales were 2,310 (up 38 percent). The Edge has posted higher sales in its first two months than did Ford's popular Fusion when it was introduced in late 2005.

The Edge and Lincoln MKX are all-new products in the company's CUV lineup. Redesigned models of Ford's Escape and Mercury Mariner are arriving at dealer showrooms now, and the new Taurus X crossover will go on sale this summer.

Ford saw lower sales for its F-Series pickup truck in February (down 12 percent), which compares with a very strong performance for America's best-selling pickup last year. Although supply is limited, the all-new F-Series Super Duty pickup is off to a fast start, with a very positive "days to turn" level of 6 days in February.

U.S. Inventories

At the end of February, Ford, Lincoln and Mercury inventories were estimated at 603,000 units. This level is 175,000 units lower than a year ago.

North American Production

In the first quarter 2007, the company plans to produce 740,000 vehicles (200,000 cars and 540,000 trucks). This plan is unchanged from the previously announced plan.

In the second quarter 2007, the company plans to produce 770,000 vehicles (220,000 cars and 550,000 trucks). In the second quarter 2006, the company produced 897,000 vehicles (328,000 cars and 569,000 trucks). More than 60 percent of the year-to-year decline in second quarter reduction reflects discontinued products and the company's planned reduction in sales to daily rental companies.

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The Edge is doing surprisingly well. Almost 8k units sold. The Fusion was up big, but I'm guessing some of the lost Taurus fleet sales became Fusion fleet sales. The rest was pretty bleak for Ford though. F-Series down 12%, Explorer down 26%, and Freestyle down 42.5%; it would appear the Edge is cannibalizing a lot of Freestyle sales.

Somehow the MKX sold 2300 units. I have no idea how, as it is a terrible vehicle for the price.

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the mkx is what some people would compare to a Lexus RX which sells well.

it does seem the edge is cannabalizing many other ford products, but if they were smart, they would use that as a tool to downsell to the other products as well.

so the edge is on pace for 100k.

i think once the 500 and FS get the new engines and names and if they promote it, we may see sales rebound some. they need to get the 3.5 in the fusion/milan too.

Ford needs to promote the snot out of what they have as much as they can right now and ashcan the bold moves crap. I would give good deals as much as possibel without slashing margins too much and advertise like hell for a year until some more of the product lines are propped up.

if they would just advertise the Fusion alone. i never see ads for the Fusion. they used to advertise the taurus ALL THE TIME.

Edited by regfootball
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the mkx is what some people would compare to a Lexus RX which sells well.

Ford needs to promote the snot out of what they have as much as they can right now and ashcan the bold moves crap. I would give good deals as much as possibel without slashing margins too much and advertise like hell for a year until some more of the product lines are propped up.

if they would just advertise the Fusion alone. i never see ads for the Fusion. they used to advertise the taurus ALL THE TIME.

Up here in canada where I am I'm starting to see alot of Fusions on the road and they do have a great ad on TV with a young couple driving a black fusion with a catchy song, makes me want to go and test drive one every time I see it. Ford also got some good news today from Consumer reports about the Fusion so maybe that will help sales too.

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the mkx is what some people would compare to a Lexus RX which sells well.

it does seem the edge is cannabalizing many other ford products, but if they were smart, they would use that as a tool to downsell to the other products as well.

so the edge is on pace for 100k.

i think once the 500 and FS get the new engines and names and if they promote it, we may see sales rebound some. they need to get the 3.5 in the fusion/milan too.

Ford needs to promote the snot out of what they have as much as they can right now and ashcan the bold moves crap. I would give good deals as much as possibel without slashing margins too much and advertise like hell for a year until some more of the product lines are propped up.

if they would just advertise the Fusion alone. i never see ads for the Fusion. they used to advertise the taurus ALL THE TIME.

I agree 100%

Ford needs to do it's best to 1) tread water where it's products aren't so strong and 2) promote the hell out of it's hot products (Fusion, Edge, Milan, MKX, MKZ)

What better way to compensate for less than stellar product than an EXCELLENT marketing campaign... It works for Scion!

I think Ford will stabilize soon, especially with the Taurus and Sable names coming back. BUT, the trick there is VERY good INFORMATIVE marketing. Ford also needs to refrain from whoring the Fusion to fleets.... As tempting as that might be, the tradeoff down the road in a couple of years is NOT in any way WORTH IT. They need to build the brand around the Mustang as well (as a halo) and update the F-150 a bit.

But, also keep in mind, F-series sales could be down because of the transition into the new Super Duty model (Which I'm sure will be a huge hit)

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Most of Ford's disappointing sales numbers are due to the old Taurus being gone...but look at the Fusion trio and Edge / MKX go! Hopefully the refreshes coming out this summer will help pick up the Taurus / Sable sales and Escape / Mariner. I don't see things being all the great for '07 with the loss of fleet sales, but Ford is on the right track with the new product. I think '08 will be much healthier for them.

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Getting rid of money losing rental car sales is a good thing. The SUV profits covered up this fact for years, but now they cant cover it up any more [same for GM]. So, no tears for the old Taurus. The new Taurus [500's new name] my not sell like the mid 1980's, but it won't lose $$ and clog up used car lots after a year on the road.

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  • 3 weeks later...

Ford's products are decent, and most appear to be on par with comparable Corollas, Camrys, and Avalons, once the refreshed Focus and "new" Taurus come out. What they desperately need most is better marketing. Bold Moves, Ford Challenge... they're all too trashy and ineffective.

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