Improvements In The Supply Chain Boost Ford's Sales

As the company ramps up production of its F-Series pickups and electric vehicles, Ford Motor Company's February sales increased by more than 20% from the subdued results seen a year earlier.

‍

There were 157,606 vehicles sold by the Detroit automaker in February, an increase of 22% from a year earlier and an increase of 7.7% from January. One of Ford's worst months since 2021 occurred in February 2022 as a result of supply chain problems that hampered Ford's sales.

‍

Compared with a year ago, Ford’s F-Series pickups saw a 22% increase in sales last month as compared with a year ago, rising to about 55,000 units, which includes 1,336 units of the electric F-150 Lightning model. F-Series pickups have seen a 15% increase in sales so far this year as compared to last year.

‍

The sales of Ford's electrified vehicles, which have been a major focus of Wall Street in recent months, continue to rise, with sales up 88% from a year earlier. In spite of this, in February, electric vehicle sales still account for only 2.9% of the automaker's total sales.

‍

By the end of February, the automaker had sold 3,600 electric F-150 Lightning vehicles. However, the automaker's sales of the vehicle slumped 41% when compared with January as a fire in a battery caused the company to temporarily halt production and shipments of the vehicle last month.

‍

The Wall Street analysts estimate that US auto sales last month were better than expected, reaching a seasonally adjusted sales rate of about 15 million units. According to data from BofA Securities, sales in February 2022 were up 8.5% over February 2021.

‍

As a result of Ford's February sales, the company outpaced other automakers that reported monthly sales for the month. Toyota Motor Corporation reported last month that its sales were down 8.5% compared to a year ago, while Hyundai-Kia reported an increase of 16.2% in sales over the same period. The majority of automakers now report sales quarterly rather than on a monthly basis instead of on a quarterly basis.

‍

A number of supply chain and production issues continue to plague the automotive industry, although it is expected that the flow of parts and vehicle production this year will be more consistent than in previous years.

‍

Hyundai Motor North America CEO Randy Parker told Trade Algo on Wednesday that the company is optimistic about its performance this year. “We expect interest rates to continue climbing throughout the rest of the year and, hopefully, we won't go into a recession as a result of that."

‍