Ford downplayed a slight increase in its November U.S. sales volume, noting that while deliveries were up only 0.4% for the month compared to a year ago, overall sales year-to-date were up 5% along with higher transaction prices and lower incentive spending.
Retail sales were led by F-Series pickups posting a 16% increase for the month. Combined with a 59% jump in commercial vans, Ford says November was its best month for truck sales in eight years.
Overall, the company reported U.S. light-vehicle sales of 180,687 vehicles in November, down from 182,272 a year ago. Although volume declined, WardsAuto data showed deliveries were up 7.8% for the month on a daily sales rate basis. There were two fewer sales days this year than last.
Part of Ford’s November sales struggles related to its “Friends and Neighbors” employee-pricing program that was discontinued due to feedback from dealers that customers were more interested in low-interest financing, says Mark LaNeve, Ford vice president-U.S. marketing, sales and service.
December’s “Holiday Sales Event” promotion will feature 0% financing and a $1,000 cash incentive.
LaNeve says the Friends and Neighbors incentive encouraged sales of higher-priced vehicles, which played a role in boosting average transaction prices by $3,800 compared to year-ago, but the program didn’t lift overall sales.
“It didn’t work as well on Escape, Fusion, Focus, Fiesta – and that’s part of the reason we’re moving off of it,” LaNeve says during a sales conference call.
Escape deliveries were down 11.4 % compared to last November, in part due to a 50% drop in fleet sales for the month. A bright spot among Ford SUVs was the all-new ’16 Edge with a 15.6% daily increase.
Incentive spending was flat compared with year-ago levels, but down $275 per transaction against October, LaNeve said.
Lincoln gained 6.1% daily compared with last November, and year-to-date sales showed a 6.6% improvement, mostly driven by sales of the MKC in the hot small CUV segment. Despite a small drop-off in sales in November, MKC deliveries were up 104.6% year-to-date, Ford says.
