DETROIT — After a yearlong free fall in the American car market, the decline of sales slowed in June, offering hope to automakers that the bottom has been reached and more shoppers may slowly start returning to showrooms soon.
Still, sales were down 7.1 percent from May, which generally is a stronger sales month.
Overall, automakers sold 859,847 vehicles in June, a 28 percent drop from the same month last year, according to Autodata Corp.
Sales declines slowed for four of the six major carmakers, with Ford Motor Co. reporting the smallest drop of 10.7 percent. For many months, Ford and other companies have been reporting year-over-year declines of 40 percent or more.
Even Chrysler, which emerged from bankruptcy protection early in June, saw its decline shrink.
Analysts say that’s among the signs that the auto industry’s slump that began with $4 per gallon gasoline last summer could be leveling off.
"It is unlikely things will get any worse,” said Jesse Toprak, executive director of industry analysis for Edmunds.com.
The slowly improving economy and government incentives of up to $4,500 to trade in inefficient clunkers for new vehicles could lead to modest improvements in the second half of the year, he said.
In anticipation of heightened traffic at dealers and higher sales later this year, Ford has increased its production order by 25,000 vehicles for the third quarter.
"We’re making steady progress,” Jim Farley, Ford’s vice president of marketing, said in a statement. "We remain grounded, however, given challenging industry and economic conditions.”
And while Chrysler’s sales results were dismal — only 68,297 cars and trucks, many sold because of incentives of more than $4,800 per car.
"At a time when they are emerging from bankruptcy and trying to reinvent themselves, it is not a huge surprise,” Toprak said.
Affordability and rising fuel prices — from $2.28 per gallon in May to $2.64 in June — boosted sales of sales of compact cars, some hybrids and larger crossover vehicles.
Sales of fuel-efficient hybrid vehicles that run on gasoline and electricity were mixed.
Analysts had speculated that June sales, when adjusted for seasonal variances and multiplied to calculate an annual selling rate, would exceed 10 million for the first time this year.
But sales once again fell just shy of that mark at 9.7 million for June. That’s a huge reduction from more than 16 million as recently as 2007.
by the associated press
AdBrite
AdBrite
Showing posts with label Ford. Show all posts
Showing posts with label Ford. Show all posts
Thursday, July 2, 2009
Monday, June 29, 2009
Car sales are up for June
DEARBORN, Mich. (AP) — Citing better-than-expected sales and traffic at dealerships, Ford Motor Co. said Monday it plans to increase third-quarter production by 25,000 units — marking the automaker's second production hike in recent weeks.
Ford spokesman Mark Truby said that will bring total quarterly production to 485,000 units, a year-over-year increase of 16 percent or 67,000 units. Last month the company said it would raise third-quarter production by 42,000 units.
The boost affects all models of Ford, Lincoln, Mercury vehicles, with more emphasis being placed on Mustangs, pickup trucks and the Ford Focus compact car, Truby said.
"We had pretty well lowered production in recent quarters to meet demand," Truby said. "Now as we're seeing market share increases and showroom activity, we're ramping up production to meet that demand."
The increase comes as Ford's top sales analyst, George Pipas, said the company's June sales were "good" compared with the overall industry. The Dearborn, Mich.-based automaker could see a year-over-year decline of 10 to 20 percent, which could be the lowest among all major automakers, he said.
"This will be our lowest decline of this year," Pipas added.
Automakers, which are due to report June U.S. sales on Wednesday, have seen sales fall 37 percent over the first five months of the year. Pipas said U.S. auto sales may have halted their month-to-month declines in June and could be down less than 30 percent for the first time since September of last year.
As bad as it sounds, a decline of less than 30 percent could be a welcome relief, as automakers and suppliers have trimmed production and other costs to adjust to lower consumer sales.
"The important takeaway is that we're not going backward, we're not slipping back," said Pipas during a sales preview talk with reporters. "It suggests the worst is behind us, not just the economy, but we may have seen the low point for the year."
Pipas said individual regions of the country are showing sales improvements compared with June 2008, another sign that the auto market has bottomed out and is recovering. While sales in the Great Lakes states are improving, they're still slow in California and Florida, two areas hit hard by the decline in the housing market, Pipas said.
Pipas joined other industry analysts in predicting that June sales could surpass a 10 million seasonally-adjusted annual selling rate for the first time this year.
Last week J.D. Power and Associates predicted that automakers would sell 914,400 vehicles in June, 26 percent less than in June of last year and 1 percent lower than the 924,064 sold in May.
Pipas said May typically is a stronger sales month than June, but he was unsure if this June would surpass May figures.
He said federal "cash for clunkers" legislation recently signed into law could boost sales later in the year, and noted that consumer confidence is improving, suggesting that the worst is over with the economy and auto sales.
Shares for Ford rose 3 percent, or 17 cents, to close Monday at $5.78.
by the associated press
Ford spokesman Mark Truby said that will bring total quarterly production to 485,000 units, a year-over-year increase of 16 percent or 67,000 units. Last month the company said it would raise third-quarter production by 42,000 units.
The boost affects all models of Ford, Lincoln, Mercury vehicles, with more emphasis being placed on Mustangs, pickup trucks and the Ford Focus compact car, Truby said.
"We had pretty well lowered production in recent quarters to meet demand," Truby said. "Now as we're seeing market share increases and showroom activity, we're ramping up production to meet that demand."
The increase comes as Ford's top sales analyst, George Pipas, said the company's June sales were "good" compared with the overall industry. The Dearborn, Mich.-based automaker could see a year-over-year decline of 10 to 20 percent, which could be the lowest among all major automakers, he said.
"This will be our lowest decline of this year," Pipas added.
Automakers, which are due to report June U.S. sales on Wednesday, have seen sales fall 37 percent over the first five months of the year. Pipas said U.S. auto sales may have halted their month-to-month declines in June and could be down less than 30 percent for the first time since September of last year.
As bad as it sounds, a decline of less than 30 percent could be a welcome relief, as automakers and suppliers have trimmed production and other costs to adjust to lower consumer sales.
"The important takeaway is that we're not going backward, we're not slipping back," said Pipas during a sales preview talk with reporters. "It suggests the worst is behind us, not just the economy, but we may have seen the low point for the year."
Pipas said individual regions of the country are showing sales improvements compared with June 2008, another sign that the auto market has bottomed out and is recovering. While sales in the Great Lakes states are improving, they're still slow in California and Florida, two areas hit hard by the decline in the housing market, Pipas said.
Pipas joined other industry analysts in predicting that June sales could surpass a 10 million seasonally-adjusted annual selling rate for the first time this year.
Last week J.D. Power and Associates predicted that automakers would sell 914,400 vehicles in June, 26 percent less than in June of last year and 1 percent lower than the 924,064 sold in May.
Pipas said May typically is a stronger sales month than June, but he was unsure if this June would surpass May figures.
He said federal "cash for clunkers" legislation recently signed into law could boost sales later in the year, and noted that consumer confidence is improving, suggesting that the worst is over with the economy and auto sales.
Shares for Ford rose 3 percent, or 17 cents, to close Monday at $5.78.
by the associated press
Thursday, May 7, 2009
Ford’s $550M plant revamp , their new Focus
WAYNE, Mich. — Ford Motor Co. stripped "truck” from the name of a Detroit-area plant Wednesday as it announced plans to build a next-generation Focus here, including a battery-electric version Ford hopes will run up to 100 miles without using gas or emitting greenhouse gases.
While Chrysler LLC sells assets in a New York bankruptcy court, and General Motors Corp. works around the clock on ways to cut labor costs and debt before a government-imposed deadline, Chairman Bill Ford Jr. and CEO Alan Mulally announced plans to invest $550 million to retool the Michigan Truck Plant to make small cars to be sold worldwide.
"In the worst of times worldwide, we’re here today to celebrate a plan to profitably grow Ford,” Mulally said.
"We’re fighting for the soul of manufacturing in the United States of America and worldwide.”
Mulally said that the Dearborn, Mich.-based automaker would build more than 2 million vehicles a year on its small C-car platform globally.
Ford and Mulally were flanked by a crowd of 500 employees, reporters and state officials, including Michigan Gov. Jennifer Granholm.
About the plant
The retooled facility, which once built hefty sport utility vehicles like the Lincoln Navigator and is now called the Michigan Assembly Plant, will build Ford’s next-generation Focus, expected to roll off the line next year. Those cars will be sold globally.
The plant also will build a new battery-electric version of the Focus for the North American market in conjunction with battery maker Magna. That vehicle is expected to debut on the market in 2011.
"We’re building the highest tech vehicle in our fleet here in Michigan,” Ford said. "It going to be a critical step toward the commercialization and ultimately the acceptance of electric vehicles.”
The plant that once helped maintain Ford’s profitability, is expected to do the same with the Focus, Mulally said.
Ford, which lost $1.4 billion in the first quarter, said roughly 3,200 jobs will be created in Michigan because of the plant conversion and will reopen late next year.
Ford shares rose 41 cents, or 7.01 percent, Wednesday to close at $6.26.
While Chrysler LLC sells assets in a New York bankruptcy court, and General Motors Corp. works around the clock on ways to cut labor costs and debt before a government-imposed deadline, Chairman Bill Ford Jr. and CEO Alan Mulally announced plans to invest $550 million to retool the Michigan Truck Plant to make small cars to be sold worldwide.
"In the worst of times worldwide, we’re here today to celebrate a plan to profitably grow Ford,” Mulally said.
"We’re fighting for the soul of manufacturing in the United States of America and worldwide.”
Mulally said that the Dearborn, Mich.-based automaker would build more than 2 million vehicles a year on its small C-car platform globally.
Ford and Mulally were flanked by a crowd of 500 employees, reporters and state officials, including Michigan Gov. Jennifer Granholm.
About the plant
The retooled facility, which once built hefty sport utility vehicles like the Lincoln Navigator and is now called the Michigan Assembly Plant, will build Ford’s next-generation Focus, expected to roll off the line next year. Those cars will be sold globally.
The plant also will build a new battery-electric version of the Focus for the North American market in conjunction with battery maker Magna. That vehicle is expected to debut on the market in 2011.
"We’re building the highest tech vehicle in our fleet here in Michigan,” Ford said. "It going to be a critical step toward the commercialization and ultimately the acceptance of electric vehicles.”
The plant that once helped maintain Ford’s profitability, is expected to do the same with the Focus, Mulally said.
Ford, which lost $1.4 billion in the first quarter, said roughly 3,200 jobs will be created in Michigan because of the plant conversion and will reopen late next year.
Ford shares rose 41 cents, or 7.01 percent, Wednesday to close at $6.26.
by the associated press
Saturday, May 2, 2009
Ford gains in Market, Without more Bailout Money
DETROIT — Detroit’s Big Three is becoming Ford and the other two.
While its rivals stay afloat with billions in government aid, Ford grabbed a bigger slice of the American car market in April with record sales of its fuel-efficient Fusion. Those results pushed it past Toyota to retake its post as the nation’s No. 2 car seller.
Even though Ford’s monthly sales tumbled 32 percent from a year earlier, it captured 16 percent of the total market. Most of those gains came at the expense of General Motors Corp. and Chrysler LLC, which unlike Ford are dependent on federal help.
Overall U.S. auto sales reported Friday fell 34 percent from a year earlier. Automakers sold about 820,000 light vehicles in April, about 38,000 fewer than in March but still a big improvement over January’s 27-year low.
"It seems we’re bouncing on the bottom of the bathtub, but it’s somewhat stabilized,” Chrysler Vice Chairman Jim Press said in a conference call with journalists. "Maybe we’ve figured out where the bottom is.”
How others are faring
Chrysler, which filed for a government-engineered bankruptcy Thursday, reported the sharpest decline among major automakers, falling 48 percent.
GM, the largest American automaker with 21 percent of the market, posted its smallest decline in four months at 34 percent.
Ford sold a record number of Fusions — 18,321 — with the unveiling of its 2010 gas and hybrid versions of the car. Ford began selling the Fusion with its 2005 model.
Still, sales of the rival Camry, Toyota’s popular sedan, totaled about 25,000 last month, while Honda’s Accord sedan sold more than 29,000.
Toyota Motor Corp., which had overtaken Ford as No. 2 in U.S. sales, fell behind its rival in sales for the first time in months. Ford got a lift from its line of midsize cars that burn less gasoline.
Ford Motor Co. sold 133,979 light vehicles in April, compared with 195,665 for the same month of 2008. The figures exclude sales of heavy and low cab forward trucks. Sales rose from March to April, with Ford selling 2,878 more cars.
April marked the sixth time in seven months that Ford gained in the retail market share.
Chrysler is clinging to a 9 percent share of the U.S. market, down from about 12 percent a year ago.
by the associated press
While its rivals stay afloat with billions in government aid, Ford grabbed a bigger slice of the American car market in April with record sales of its fuel-efficient Fusion. Those results pushed it past Toyota to retake its post as the nation’s No. 2 car seller.
Even though Ford’s monthly sales tumbled 32 percent from a year earlier, it captured 16 percent of the total market. Most of those gains came at the expense of General Motors Corp. and Chrysler LLC, which unlike Ford are dependent on federal help.
Overall U.S. auto sales reported Friday fell 34 percent from a year earlier. Automakers sold about 820,000 light vehicles in April, about 38,000 fewer than in March but still a big improvement over January’s 27-year low.
"It seems we’re bouncing on the bottom of the bathtub, but it’s somewhat stabilized,” Chrysler Vice Chairman Jim Press said in a conference call with journalists. "Maybe we’ve figured out where the bottom is.”
How others are faring
Chrysler, which filed for a government-engineered bankruptcy Thursday, reported the sharpest decline among major automakers, falling 48 percent.
GM, the largest American automaker with 21 percent of the market, posted its smallest decline in four months at 34 percent.
Ford sold a record number of Fusions — 18,321 — with the unveiling of its 2010 gas and hybrid versions of the car. Ford began selling the Fusion with its 2005 model.
Still, sales of the rival Camry, Toyota’s popular sedan, totaled about 25,000 last month, while Honda’s Accord sedan sold more than 29,000.
Toyota Motor Corp., which had overtaken Ford as No. 2 in U.S. sales, fell behind its rival in sales for the first time in months. Ford got a lift from its line of midsize cars that burn less gasoline.
Ford Motor Co. sold 133,979 light vehicles in April, compared with 195,665 for the same month of 2008. The figures exclude sales of heavy and low cab forward trucks. Sales rose from March to April, with Ford selling 2,878 more cars.
April marked the sixth time in seven months that Ford gained in the retail market share.
Chrysler is clinging to a 9 percent share of the U.S. market, down from about 12 percent a year ago.
by the associated press
Thursday, April 23, 2009
Ford may drive away without a bailout
DEARBORN, Mich. — Better-than-expected earnings from Ford raised hopes Friday that the automaker’s restructuring and new products may be enough to spare it from a federal bailout, while General Motors received more government help and Chrysler raced to avoid bankruptcy.
Ford still lost $1.4 billion from January through March, but that was less than expected, and executives said the outlook for future sales was good enough to increase production of its most popular vehicles. Ford Motor Co. has taken several steps over the last few years to avoid government intervention: cutting costs, focusing on its core brands, and introducing vehicles and advanced features.
"Ford is building the best stuff it’s ever made in terms of quality rankings and critical reviews,” said Aaron Bragman, auto analyst at IHS Global Insight. "The vehicles are sufficiently improved and people are starting to realize that.”
While Ford tries to go it alone, federal officials are questioning every penny spent by General Motors Corp. and Chrysler LLC, which are both subsisting on government loans.
Friday, the Treasury Department said it loaned $2 billion to GM, bringing the automaker’s total to $15.4 billion. Chrysler has borrowed $4 billion and could get $500 million more so it can keep running while it restructures.
But Ford, under the leadership of former Boeing Corp. CEO Alan Mulally, mortgaged all of the automaker’s assets — including the trademark blue logo — a few years ago, when loans were easier to get from the private sector.
Are things improving?
As of March 31, Ford had $21.3 billion to help it survive the worst market for U.S. auto sales in 27 years.
The company said Friday it had spent just $3.7 billion of its cash during the first three months of this year, far less than the $7.2 billion it burned in the fourth quarter of 2008. Investors sent Ford’s shares up 11 percent.
"I think the important comparison for us is ‘Are we improving versus the fourth quarter?’” Chief Financial Officer Lewis Booth said. "Because the fourth quarter, things were really dreadful.”
He said cost cuts and better pricing for its vehicles helped Ford narrow its losses from $5.9 billion in the fourth quarter, and he expects continued improvement.
Ford said it was able to charge more for its vehicles, which now come loaded with features such as electronic blind-spot detection and technology that links cell phones and MP3 players to a voice-activated command center.
by the associated press
Ford still lost $1.4 billion from January through March, but that was less than expected, and executives said the outlook for future sales was good enough to increase production of its most popular vehicles. Ford Motor Co. has taken several steps over the last few years to avoid government intervention: cutting costs, focusing on its core brands, and introducing vehicles and advanced features.
"Ford is building the best stuff it’s ever made in terms of quality rankings and critical reviews,” said Aaron Bragman, auto analyst at IHS Global Insight. "The vehicles are sufficiently improved and people are starting to realize that.”
While Ford tries to go it alone, federal officials are questioning every penny spent by General Motors Corp. and Chrysler LLC, which are both subsisting on government loans.
Friday, the Treasury Department said it loaned $2 billion to GM, bringing the automaker’s total to $15.4 billion. Chrysler has borrowed $4 billion and could get $500 million more so it can keep running while it restructures.
But Ford, under the leadership of former Boeing Corp. CEO Alan Mulally, mortgaged all of the automaker’s assets — including the trademark blue logo — a few years ago, when loans were easier to get from the private sector.
Are things improving?
As of March 31, Ford had $21.3 billion to help it survive the worst market for U.S. auto sales in 27 years.
The company said Friday it had spent just $3.7 billion of its cash during the first three months of this year, far less than the $7.2 billion it burned in the fourth quarter of 2008. Investors sent Ford’s shares up 11 percent.
"I think the important comparison for us is ‘Are we improving versus the fourth quarter?’” Chief Financial Officer Lewis Booth said. "Because the fourth quarter, things were really dreadful.”
He said cost cuts and better pricing for its vehicles helped Ford narrow its losses from $5.9 billion in the fourth quarter, and he expects continued improvement.
Ford said it was able to charge more for its vehicles, which now come loaded with features such as electronic blind-spot detection and technology that links cell phones and MP3 players to a voice-activated command center.
by the associated press
Tuesday, April 7, 2009
Ford makes move to Reduce Debt
Ford Motors Co. said Monday it completed tender offers that will reduce its debt by 38 pecent and shave millions of dollars in securities issued by either the parnet company or its finance arm in exchange under terms of debt buybacks.
Subscribe to:
Posts (Atom)