Ford Q2 sales drop 10.3% due to F-Series supplier issue, falling EV demand

AI Market Analysis

Ford’s Q2 results show a notable 10.3% decline in U.S. new‑vehicle sales, driven by an aluminum supply disruption affecting its core F‑Series trucks and a 40.7% plunge in pure‑EV sales. The slowdown may pressure Ford’s earnings outlook and could weigh on the broader U.S. auto sector, especially other manufacturers with significant EV exposure. Investors may reassess valuation multiples for legacy automakers, while the broader market could see a modest shift toward suppliers and parts makers that are less dependent on EV volumes.

The mixed industry backdrop—strong overall U.S. sales growth but divergent performance among EV producers—suggests a cautious tone for related equities. Hybrid‑focused rivals may benefit as consumers gravitate toward near‑term fuel‑efficient options, while pure‑EV players could face heightened volatility. Currency markets might see a slight weakening of the Canadian dollar, given its correlation with North American auto exports, and a modest rally in the U.S. dollar as risk sentiment adjusts.

Original Article

Ford Q2 sales drop 10.3% due to F-Series supplier issue, falling EV demand

DETROIT — Ford Motor on Thursday reported a 10.3% decline in its second-quarter U.S. new vehicle sales as the company battled a supplier issue for its F-Series pickup trucks and a significant drop in all-electric vehicles.
The Detroit automaker said its pure EV sales fell by 40.7% during the quarter compared with a year earlier. Sales of its F-Series trucks, including the F-150, slipped 11% as Ford began ramping up production after its top aluminum supplier restarted production following two fires late last year.
“Although customer demand remains high, first-half F-Series sales reflect a retiming of commercial production following last year’s aluminum supply shortages. Ford expects supply to recover more fully in the second half of the year,” Ford said in a release.
Ford sold 549,200 vehicles during the second quarter compared with 612,095 units a year earlier. While that’s among the largest expected industry declines, the results slightly beat Cox Automotive’s expectations for Ford sales to fall 11.5%.
The automaker has sold 1 million vehicles year to date through June, down 9.6% from 1.1 million during the first half of last year.
Ford noted that despite the declines, the F-Series remained America’s top-selling truck. The company also estimates its U.S. retail market share to end the quarter was up 0.2 percentage point compared with a year earlier, to 12.3%.
Ford’s sales come a day after most major automakers reported second-quarter numbers that were better than expected, largely driven by increased demand for hybrid vehicles. Crosstown rival General Motors saw its sales fall 4.2%, however, as its EV sales dropped.
Automotive data firm Motor Intelligence on Wednesday estimated U.S. industry sales for June were up 7.5% compared with a year ago, leading to a monthly adjusted selling pace of 16.67 million units, which was higher than many forecasters had expected.
As of last week, Cox Automotive expected U.S. auto sales to be down 2.9% to 15.8 million vehicles, including a 3.4% decline in retail sales. That included a 16.1 adjusted selling rate forecast for June.

Source: CNBC Business

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