Ford Driving Car Sales with Fuel Efficient Line Up
Ford (NYSE:F) car sales in the U.S. increased 26% year-on-year in April as high oil prices boosted demand for fuel efficient vehicles. [1] Ford mainly competes with auto manufacturers like BMW (GR:BMW), GM (NYSE:GM), Daimler (ETR:DAI), Audi (NSU:GR), Honda (NYSE:HMC) and Toyota (NYSE:TM).
Impressive fuel efficient line-up of Ford Cars
Increased environmental awareness and $4 a gallon gas in much of the country has encouraged customers to look for smaller, more fuel efficient cars. In April and May we saw this trend continue as oil price continued to climb. Ford car sales were able to capitalize on this trend because of Ford’s push into fuel efficient technologies has helped it build one of the most impressive line up of fuel efficient vehicles.
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Ford’s May 3rd press release notes that the company offers 12 vehicles that lead their sales segments in fuel economy, including four vehicles with EPA certified 40 mpg or higher ratings – a claim no other full-line automaker can match. [1]
Many oil analysts expect that oil and commodity prices will remain at elevated levels at least in the short-mid term given political unrest in some oil producing countries and continued economic growth in emerging economies. This will continue to reinforce the trend towards fuel-efficient, smaller vehicles and in turn drive Ford’s car market share in North America.
Successful small car launches
Recent successful launches of two new small cars – Ford’s new Fiesta and all-new 2012 Focus – have also helped drive car sales volumes. While the Fiesta continued to sell more than 9,000 vehicles for the second month in a row, the Focus sales increased 22% versus a year ago. In addition, existing brands such as Fusion (up 12% year-on-year) and Ford Mustang (up 59% year-on-year) continue to expand sales.
You can drag the trend lines in the modifiable charts above to see the impact of these trends on Ford’s stock value.
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