Has The Global Slowdown Affected Ford’s South America’s Volumes?

by Trefis Team
+102.61%
Upside
5.03
Market
10.19
Trefis
F
Ford
Rate   |   votes   |   Share

Yes, Ford Motors‘ (NYSE: F) South American business is also affected by the global auto slowdown. In 2018 the segment saw a fall of 2.1% in sales volume and overall revenue fell from $5.8 billion in 2017 to $5.3 billion in 2018.

Please refer to the Trefis interactive dashboard – What happened to Ford’s South America sales volume over the years? – to understand the annual change in Ford’s South America sales volume.

What Happened?

  • Ford’s South America sales volume has been  fluctuating over the past few years.
  • Sales volume fell from 463K in 2014 to 325K in 2016. The company saw a a rise again in 2017 when the sales volume reached 373K but fell back in 2018 to 365K
  • In 2019 Trefis estimates sales volume to be around 357.8K

 

 

Why?

  • In 2015 the South American industry reflected deterioration of the business environment which was seen by the overall automotive volume being by 1.1 million units y-o-y which also affected Ford, as we saw above.
  • In 2017 we saw a recovery as Ford had a sales volume of 373K, but in 2018 as the global auto slowdown hit we saw a small fall in Ford’s sales volume in the region.

So What?

  • The fall in sales volume along with a fall in pricing is affecting the Top line of Ford’s South America business as revenue from the segment fell from $5.8 billion in 2017 to $5.3 billion in 2018. For more details please visit our interactive dashboard: Ford’s Revenues.
  • In 2019 we expect the region will continue to be affected by the global auto slowdown, but expect revenue to remain flat as the fall in sales volume is expected to be offset by the rise in pricing.

 

What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs

For CFOs and Finance Teams | Product, R&D, and Marketing Teams

More Trefis Data

Like our charts? Explore example interactive dashboards and create your own.

Rate   |   votes   |   Share

Comments

Name (Required)
Email (Required, but never displayed)
Be the first to comment!