If you compare last month to May 2008, then Ford Motor Company (NYSE: F) looks pretty shaky: the American auto maker posted a 24% dip in sales year over year. However, the picture starts to look a lot better once you compare April and May of this year.All in all, Ford sold 161,197 vehicles last month in the U.S.. Yes, this was 24% off the pace it set last year at this time, but it does mark a pretty impressive 20% jump over its numbers during the previous month, as the company was able to take slight advantage of its competitors' financial woes.
It could certainly be argued that sales are picking up for Ford due to nervous consumers that would have bought a car from General Motors or Chrysler if those companies were not going through bankruptcy. I believe it would be a rather easy argument to win, but Ford wants to make sure that this is not the impression investors should have.
According to the company, it is its better performing cars that have been boosting sales and increasing market share as of late. The Ford Fusion was a big winner in May, with sales of the popular vehicle jumping 9.4%, making it the second biggest seller in the company's lineup behind the F-Series pickup truck.
Another positive sign for Ford is the fact that it is getting ready to beef up its production a bit in the months to come. The other major American auto makers are cutting production and stalling factories, but Ford plans to produce an additional 10,000 vehicles in the second quarter and to boost its third quarter production to 460,000 vehicles, an increase of 40,000 vehicles of the same period last year.
Will Ford be the sole U.S. auto maker to avoid bankruptcy? There is still a long way to go before we have a definitive answer on that question, but for now it does seem to be moving in the right direction. What are your thoughts on Ford? Buy now, or brace for main pain the months and years to come?
updated: General Motors just announced that its May sales were off by 30%.
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Reader Comments (Page 1 of 1)
6-02-2009 @ 10:13PM
John said...
The only way we are going to get out of this mess is for Americans to do what they do best and that is to buy cars! Go buy a car as soon as you can afford to do it! If you do, go buy a Ford and help strengthen them and save the American Auto Industry!