For the second time in its nine-year history Ford Motor Company 's redesigned Focus sales surpassed the 30,000 unit milestone in May. Here to talk about that and Ford's total sales for the Month of May is Ford Sales Analyst, George Pipas.
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"We estimate that the seasonably adjusted annual sales rate was easily about 14-million, but that's down nearly a million units from the sales rates that we saw in April and May and over a million unites from the sales rate that we saw in the first quarter.":15 sec. |
According to Pipas it is still unclear if the auto industry sales, as a whole, has reached bottom. |
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"There is nothing in the leading economic indicators to suggest that we've reached the low point. That may still yet be in front of us.":07 sec. |
| However, while the future may look uncertain, the first half of 2008 does show some positive signs of better things to come in the form of cars and crossovers. |
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"The cars and crossover categories now account for 59 percent of our retail sales in the first half, that's a 10 percentage point change from the same period a year ago, so it's quite a transformation going on at Ford.":13 sec. |
| According to Pipas, Ford's retail performance both in market share and sales numbers, out performed the industry in the car and crossover industry. |
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"The car performance was led by the Focus, where first half of retail sales were up 53 percent, strong performances higher retail sales for our midsize sedans the Fusion, the Milan and the MKZ and our crossovers also out performed the industry in the first half and Edge was the major contributor to that.":23 sec. |
| Another reality check according to Pipas, is that record sales of the Ford Focus and Fusion in the months of April and May drew down inventory levels in the month of June and those limited supplies contributed to the decline in the sales rate. |
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"So until those inventory levels get built back up, we're liable to see these lower sales rates persist in July, August and September.":08 sec. |
| Pipas says looking back on the first half of 2008 we can see that the US economy is weaker and household budgets are smaller because of higher prices at the pump and increased costs for the necessities. |
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"That adds up to about a hundred-billion dollars of higher costs for consumers over a 12 month period, which so happens to equal, just about equal, the economic stimulus checks. So now we can see where the economic stimulus checks were basically absorbed by gasoline prices.":21 sec. |
| While we may not have hit bottom economically according to Pipas, all is not doom and gloom. He foresees Ford's future product's offering consumers vehicles that will be people movers and still achieve good fuel economy. |
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"Ford is adjusting quickly to this reality, I think we're going to have a lot of good news on fuel economy in conjuction with the new Fusion, Milan and MKZ that we start building later this year, and there is more good news to come in the fuel economy. So Ford is adjusting not only its production quickly, but also in the next several months, including the introductions that we have today, several products will boast class leading fuel economy readings." |
| The 2009 model Ford Escape and Mercury Mariner will be equipped with a new 2.5 liter-four-cylinder engine and six-speed transimission, delivering best-in-class fuel economy in the small utility segment with 28 highway miles per gallon. Both the Escape and Mariner Hybrid remain the most fuel-efficient utility vehicle on the planet, delivering 34 city mpg and improved highway rating of 31 mpg, up from 30 mpg. |
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