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Ford sales jump as supply chain issues improve

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Ford Motor Co., CEO Jim Farley offers the thumbs up signal earlier than saying Ford Motor will accomplice with Chinese language-based, Amperex Know-how, to construct an all-electric automobile battery plant in Marshall, Michigan, throughout a press convention in Romulus, Michigan February 13, 2023.
Rebecca Prepare dinner | Reuters

DETROIT — Ford Motor’s February gross sales elevated by greater than 20% from subdued outcomes a yr earlier, because the automaker ratchets up manufacturing of its F-Collection pickups and electrical autos.

The Detroit automaker Thursday reported February gross sales of 157,606 autos, up 22% from a yr earlier and a 7.7% enhance from January. Ford’s gross sales have been hampered by provide chain issues in February 2022, making for one among its worst months since 2021.

Gross sales of Ford’s F-Collection pickups jumped 22% final month in contrast with a yr earlier, rising to about 55,000 models, together with 1,336 models of its electrical F-150 Lightning. Thus far this yr, gross sales of F-Collection pickups are up 15%.

Ford’s electrical automobile gross sales — a serious focus of Wall Road — proceed to extend, up 88% from a yr earlier. Nonetheless, EV gross sales nonetheless solely signify 2.9% of the automaker’s gross sales via February.

The automaker offered 3,600 electrical F-150 Lightning autos via February. Nonetheless, gross sales have been off 41% in contrast with January because the automaker halted manufacturing and shipments of the automobile final month on account of a battery fireplace.

Wall Road analysts estimate U.S. auto gross sales final month have been higher than anticipated, reaching a seasonally adjusted promoting charge of about 15 million models. BofA Securities estimated gross sales have been up by 8.5% final month in contrast with February 2022.

Ford’s February gross sales outpaced different automakers who reported month-to-month gross sales. Toyota Motor’s gross sales final month have been down by 8.5% in contrast with a yr earlier, whereas Hyundai-Kia’s gross sales elevated by 16.2%. Many automakers have moved to quarterly gross sales reporting as a substitute of month-to-month.

The automotive business continues to navigate via some provide chain and manufacturing points,  though the circulate of elements and automobile manufacturing this yr is anticipated to be extra constant than lately.

“We’re optimistic relating to our efficiency this yr,” Hyundai Motor North America CEO Randy Parker instructed CNBC on Wednesday. “We do anticipate that rates of interest will proceed to climb for the stability of the yr, and hopefully that does not tip us right into a recession.”

— CNBC’s Michael Bloom contributed to this report.

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