Ford on Wednesday became the latest U.S. automaker to report weaker growth in domestic new vehicle sales in the third quarter, as buyers continued to shy away from purchases on affordability concerns.
The company’s shares fell about two per cent in early trading.
Major automakers in the United States, including Toyota and General Motors, reported weaker sales for the quarter on Tuesday, with some citing affordability concerns and fewer selling days as a drag on performance.
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Chrysler-parent Stellantis also reported a 20 per cent drop in U.S. quarterly sales on Wednesday and added that it would “continue to take the necessary actions” to drive sales and prepare for the arrival of its 2025 models.
Consumers have also shifted their preferences over the past year to favor affordable subcompact crossovers and pickup trucks instead of larger luxury models in the face of economic uncertainties.
Sales of Ford’s top-selling F-series trucks gained about four per cent in the quarter, compared with last year’s nearly 13 per cent rise. Affordable compact Maverick pickup truck’s sales jumped 33.2 per cent to 31,883.
Ford’s overall sales in the quarter rose to 504,039 units from 500,504 a year ago. This compares to a 7.7 per cent rise in sales for the same period last year.
Overall, U.S. new vehicle sales in September stood at around 1.17 million units, which represents a seasonally adjusted annual rate of 15.77 million units, according to data released by Wards Intelligence on Tuesday.
(Reporting by Nathan Gomes in Bengaluru; Editing by Shreya Biswas and Maju Samuel)
