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Ford’s October sales slide 10% amid supply chain issues

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Ford F-150 pickup vehicles at a dealership in Colma, California, on Friday, July 22, 2022.
David Paul Morris | Bloomberg | Getty Photos

DETROIT – Ford Motor’s U.S. gross sales final month declined by 10% because the automaker battled by way of provide chain points that delayed shipments to sellers.

The Detroit automaker on Wednesday reported gross sales of 158,327 new automobiles in October, which was off from practically 176,000 items bought throughout the identical month a yr earlier. It was the second-straight month of year-over-year declines after two months of double-digit will increase over subdued gross sales constrained by semiconductor shortages.

Ford’s October gross sales have been far decrease than the general trade. Edmunds stories total auto gross sales elevated 9.1% in contrast with a yr earlier to just about 1.2 million automobiles bought.

Ford has skilled distinctive provide chain points recently, together with sourcing of its blue oval badges for extremely worthwhile pickup vehicles and SUVs. The automaker had roughly 40,000 automobiles awaiting elements to finish the third quarter. It stated final week it expects to finish and ship these automobiles to sellers by the top of the yr.

Andrew Frick, Ford vp of gross sales, distribution & vehicles, stated the automaker “continues to see robust demand for its automobiles” amid rising rates of interest, file inflation and recessionary fears.

Ford stated orders for 2023 model-year automobiles totaled 255,000. Roughly half of these have been retail gross sales from beforehand positioned orders, based on the corporate.

Gross sales of Ford’s worthwhile F-Collection pickups have been off by 17.4% final month from October 2021, contributing to a roughly 13% year-to-date decline heading into the final two months of the yr. The corporate bought 11,196 fashions of its all-electric F-150 Lightning pickup by way of October, together with 2,436 automobiles final month.

Ford’s 2022 all-electric car gross sales totaled roughly 47,500 items by way of October, accounting for about 3% of the automaker’s gross sales. A majority of these gross sales have been Mustang Mach-E crossovers, which have elevated 44% in contrast with final yr to greater than 31,000 items.

12 months-to-date gross sales of all of Ford’s automobiles, together with its luxurious Lincoln model, totaled 1.54 million items by way of October, a 2.2% lower from a yr in the past.

Ford is amongst a handful of automakers to report new month-to-month car gross sales. Others — reminiscent of Normal Motors and Stellantis, previously Fiat Chrysler — report gross sales solely quarterly.

Ford’s October gross sales come every week after the corporate recorded a internet lack of $827 million in the course of the third quarter, weighed down by provide chain issues and prices associated to disbanding its autonomous car unit Argo AI.

The carmaker final week up to date its steering to forecast full-year adjusted earnings earlier than curiosity and taxes of about $11.5 billion – the bottom finish of its beforehand forecast earnings. It raised its full-year adjusted free money circulate forecast, nonetheless, to between $9.5 billion and $10 billion – up from $5.5 billion to $6.5 billion – on power within the firm’s automotive operations.

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