Ford's U.S. Sales Fell 2.9% in First Half Amid Soft Market -- WSJ

By Nora Naughton 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (July 5, 2019).

Ford Motor Co.'s U.S. sales slid 2.9% in the first six months of 2019, making it the latest car company this week to report weaker first-half sales as U.S. demand for new vehicles cools after a historically strong run.

The No. 2 U.S. auto maker also said Wednesday second-quarter sales were down 4.1% over the prior-year period, as declines in its passenger-car and sport-utility business offset continued strength in the truck market.

Ford is leaning heavily on its U.S. operations to drive profits and offset losses overseas as it executes an $11 billion, multiyear restructuring of its global car business. The restructuring includes closing factories, eliminating unprofitable car lines and cutting thousands of jobs in an effort to restore earnings growth.

Ford's car division, which is discontinuing a majority of its nameplates, fell 22.5% through June. SUV sales slid 2.3% to drive the overall sales decline in first half of the year.

Truck sales, up nearly 6% for the first half, were the bright spot for Ford, The rise was driven mostly by a new Ranger pickup truck that hit dealerships earlier this year.

Sales of Ford's top-selling F-Series truck line slipped 0.6% through June, and 1.3% in the second quarter. Still, the average transaction price for the F-Series rose $1,200 in the second quarter to $47,500 -- about $2,500 above the truck-market average, according to Ford.

Trucks and SUVs contributed 83% of Ford's total sales in the second quarter. Sales of the Expedition increased 56% while Explorer sales were down 20% as redesigned models were just hitting dealer lots.

While Ford's pickup-truck market share grew in the second quarter, U.S. Sales Chief Mark LaNeve said volume declines from outgoing sedans -- a process he said is now in full progress -- were too hefty for the Ford brand to overcome.

Excluding double-digit declines in units sold from Taurus and Focus, Ford brand sales would have been up 3%, he said.

Among Ford's other dying nameplates, the Fiesta and Fusion sedans both posted double-digit sales increases as the company worked to sell down the outgoing models.

The Lincoln brand saw sales increase 1.3% through June, driven up by SUV sales. Sales of the premium brand's pricey Navigators fell nearly 2.8% in the first half of the year.

The U.S. auto industry has posted six straight months of sales declines in the first half, a deceleration that is expected to continue through the remainder of the year. Analysts expected U.S. industry-wide sales will fall short of the 17 million mark for the first time since 2014.

--Mike Colias contributed to this article.

(END) Dow Jones Newswires

July 05, 2019 02:47 ET (06:47 GMT)

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