Morningstar | Ford's August Sales Show Strong SUV and Pickup Demand
August U.S. light-vehicle sales received a little help from a soft comparable due to Hurricane Harvey ravaging Houston in August 2017. Sales will have a tough comparable from Harvey for September 2018. August 2018 sales declined by 0.2% year over year to 1.48 million, while Automotive News put the seasonally adjusted annualized selling rate, SAAR, at 16.69 million versus 16.58 million in August 2017. Both Augusts had 27 selling days, and this is the lowest SAAR yet of 2018. Ford gave industry incentive dollar spending figures by vehicle segment that did not show a major change in high incentive levels, and we continue to expect a battle for the rest of the year between new-vehicle incentives and consumers drawn to used vehicles as more vehicles come off-lease. Light trucks are king in this market and that remains good news for the Detroit Three, which each get at least nearly 80% of their U.S. unit sales mix from light trucks.Ford had a solid month despite a continued plunge in its car lineup, which fell 21.3% year over year for August. Its total sales rose 4.1%, with retail channel up 1.1% and fleet up 15%. The fleet strength came from the right channel with commercial fleet up 20% and its mix up 200 basis points, while rental fleet mix only rose by 30 basis points to 2.4% of total sales. Pricing after incentives grew $1,400 due to record Super Duty pickup prices of $58,700 and a $29,900 rise in Lincoln Navigator pricing to $84,000. Navigator continues to thrive this year, with August sales up 102% and Lincoln's momentum remains with its light trucks, which rose 15% while the brand's car models fell 20%. The F-Series' 6.3% rise to 81,839 units was the best F-Series August sales since 2005. Ford's SUV and crossover sales grew 20.1% and had good pricing on expensive larger models such as the Expedition. That SUV got redone with the Navigator, and its August sales rose 95% and pricing grew $13,100. The Explorer had its best August in 14 years, with sales up 19%.
Ford Motor designs, manufactures, markets, and services a line of Ford cars, trucks, sport utility vehicles, electrified vehicles, and Lincoln vehicles, as well as provides financial services through its subsidiary, Ford Motor Credit Company LLC. The company is engaged in electrification; mobility solutions, including self-driving services; and connected vehicle services. The company has three operating segments: Automotive, which includes the sale of Ford and Lincoln vehicles, service parts, and accessories; Mobility, which includes its autonomous vehicles and its investment in mobility through Ford Smart Mobility LLC; and Ford Credit, which includes vehicle-related financing and leasing activities.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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