Ford’s sales increase by 6.8% fueled by strong demand for hybrids and electric vehicles

Ford’s sales increase by 6.8% fueled by strong demand for hybrids and electric vehicles

Like other historic automakers this week, Ford (F) is the latest to report strong first-quarter sales.

Ford reported first quarter U.S. sales jumped 6.8% to 508,083 vehicles, driven by strong sales of electrified products such as hybrids and electric vehicles. Ford’s Maverick hybrid pickup truck had its best quarter on record, with sales up 77% in the first quarter. Maverick also propelled overall hybrid sales to a 42% jump, to 38,421, with Ford saying it was also the best quarter for hybrids and that momentum would continue.

Ford’s electric vehicle offerings – the Mustang Mach-E, Ford Lightning EV and its E-Transit commercial vans – have resisted the recent trend of slowing demand. Ford’s overall electric vehicle portfolio saw a massive 82% increase to 20,223 electric vehicles sold in the first quarter, with the Mustang Mach-E jumping 77.3% to 9,589 units sold and the Lightning pickup seeing its sales increase by 80.4% to 7,743 units. Although sales numbers are strong, Ford has relied on deep discounts, cheap financing rates and leases to move inventory.

Ford’s sales increase by 6.8% fueled by strong demand for hybrids and electric vehicles

A Ford Mustang Mach-E Rally electric vehicle at the New York International Auto Show, Saturday, March 30, 2024. (Ted Shaffrey/AP Photo) (ASSOCIATED PRESS)

One negative for Ford, however, has been its flagship F-150 sales. Although the F-Series (which includes the F-150 and the heavy-duty F-250 and F-350) retained the crown as the best-selling truck in the United States, sales fell 10.2% over the quarter, at 152,943 units. Ford experienced a slow rise in power of the all-new F-150, sales of which began in March.

Still, investors are cheering Ford’s sales results today, with the stock up nearly 2% at midday.

“The new F-150 will be a major asset for us in the gasoline, hybrid and electric vehicle segments of our business,” said Andrew Frick, president of Ford Blue, the unit covering Ford’s traditional gasoline and hybrid offerings. “With sales of the new F-150 and all-new Ranger beginning in March as well as the strong performance of our all-new Lincoln Nautilus and Nautilus Hybrid, we are in a strong position to capitalize and grow as we move forward. ‘in 2024.

SUVs still did pretty well, with the Bronco Sport (up 5.7%), Escape (up 70.3%), Edge (up 73.3%) and Expedition (up 11.4%) among the winners. Vehicles that didn’t perform during the quarter included Ford’s only “traditional” offering, the Mustang (down 6.8%) and the automaker’s popular full-size Bronco, whose sales fell 25%. .8% during the quarter to 24,000 units sold.

Ford’s strong overall first-quarter performance follows reports from traditional automakers like General manager, Honda, ToyotaAnd Hyundai which leverage hybrid and gasoline vehicles to offset any weakness in electric vehicles, but, like Ford, Korean automakers like Hyundai and Come on are also seeing gains in their electric vehicle businesses.

Ford will release its full first quarter financial results after the bell on Wednesday, April 24. In late March, Ford Chief Financial Officer John Lawler reiterated its forecast for 2024 that Ford provided in early February, forecasting adjusted earnings before interest and taxes (EBIT) of $10 billion to $12 billion, adjusted free cash flow of $6 billion to $7 billion and capital expenditures of $8 billion to $9.5 billion. billions of dollars. It’s also worth noting that Q1 will be the first quarter in which Ford’s new collective bargaining agreement with the United Auto Workers union goes into effect.

Pras Subramanian is a journalist for Yahoo Finance. You can follow it Twitter and on Instagram.

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