Ford vehicle sales fell 12.5% in first quarter, the worst of the Detroit 3

Posted by Talbot Payne on April 2, 2020

Ford Motor Co.’s sales fell 12.5% in the first three months of the year, the automaker said Thursday, following the dismal results of other carmakers who reported their numbers the previous day, as the pandemic closes dealerships across many parts of the country.

The sales drop was the largest of the Detroit Three automakers with Fiat Chrysler Automobiles down 10% for the quarter and General Motors Co. off 7% as government-mandated stay-at-home orders and a souring economy slowed buyer traffic to a crawl.

Ford’s vehicle sales fell the most of the Detroit automakers, as plants remain closed and more dealerships are forced to lock their doors. (Photo: Carlos Osorio, AP) Ford’s vehicle sales fell the most of the Detroit automakers, as plants remain closed and more dealerships are forced to lock their doors.

But the Detroit truck wars raged on, with Ford maintaining its crown as best-selling truck brand.

Other bright spots included Lincoln and the Mustang, which both gained sales ahead of what is sure to be a harrowing April. With most of the country anticipated to be in lockdown against the coronavirus storm, analysts expect auto sales to erode by 80%.

“Our Ford team is working around the clock on everything from building healthcare equipment, assisting our dealership network and providing our customers peace of mind through deferred vehicle payments,” said U.S. Ford marketing chief Mark LaNeve.

Dealer incentives were a big reason that Ford’s overall pickup sales were off only 5.4% as J.D. Power reported that automakers shoveled truckloads of incentives, including no-interest loans, to maintain volume in their most profitable segment.

Though even the mighty F-series was not immune to COVID-19’s effects with sales off 13.1%, it maintained its status as America’s best-selling vehicle with 186,562 units sold. Chevy SIlverado sales were 143,698 while Ram clocked in at 128,805.

Overall, GM, FCA, and Ford gained a whopping 11 points in U.S. market share thanks to healthy pickup sales.

Lincoln sales jump of 6.9% bodes well for Ford’s resurgent luxury brand for when markets return to normal. The gain came in the face of deep luxury sales losses as key premium markets like California and New York shuttered (although they are still permitted to do online sales, unlike Michigan). New York alone accounts for 14% of U.S. luxury sales.