Ford Begins Year on Strong Note

There isn’t much not to like in Ford’s January report, as the automaker delivered 173,925 light vehicles in the month for an 11.3% gain in daily sales (one more day this year than last), outperforming expectations.

Ford says its retail volume climbed 13% to 128,666 units, marking the best January since 2004.

The all-important all-new F-150 appears to be off to a strong start, with dealers turning out the aluminum-intensive model in just 12 days, with an even shorter 9- to 10-day turn for the top-of-the-line King Ranch and Platinum models.

Average transaction prices rose $2,100 from year-ago, says Erich Merkle, Ford’s U.S. sales analyst.

“We’re extremely pleased,” he says of the new model’s reception. “There’s been strong response to new model.”

The ’15 version accounted for about 18% of all F-150 retail sales. Ford’s Dearborn, MI, plant that builds the new truck is now at full speed on three crews and the Kansas City, MO, plant should complete its retooling for the new model by the end of the quarter, Merkle says.

Ford expects to have its inventory mix shifted to predominantly new F-150s by the end of the second quarter. “We’re doing everything we can to get as many out there as we can,” Ford’s sales analyst says “We expect to be in a good position by the end of the second quarter.”

Among the positives for Ford in the month was a 39% jump in volume for the van sector, fueled by strong results for the Transit Connect, up 65.3%, and plus volume from the bigger Transit. The Mustang also posted a solid showing, up 115.4% daily, driven in part by the launch of the convertible. Merkle says retail sales jumped 137% in California, including a 146% surge in Los Angeles.

Utility vehicles were another bright spot, up 8% on strong Escape demand and the Explorer’s best January since 2005. Lincoln recorded its best start of the year since 2010 on a 22% retail-sales gain, mainly resulting from strong MKC and Navigator utility demand.

Among the weak spots were the Fiesta small car, Fusion midsize sedan and Flex and Edge utility vehicles, though a new Edge model is due by the end of the quarter.

Fleet sales accounted for 28% of the January total, up from 26% year-ago, with daily rental accounting for 10 points of that, up from seven in like-2014.

Ford finished January with 599,000 vehicles in stock, good for an 87-day supply. That compares with a 72-day supply at the end of December. Cars accounted for 184,000 units of the total January inventory, with trucks at 246,000 and utilities at 169,000.

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