May was a solid month for Ford U.S. sales, despite an expected decline in daily rentals and F-Series sales.
F-Series had a strong month but sales were down slightly from last year by 4 percent, which also placed a bit of a drag on May sales figures since F-Series represents about 30 percent of overall sales for the company. But Ford U.S. Sales Analyst Erich Merkle said what’s happening with F-Series is also an expected result of Ford’s plan.
“We’re managing our incentive spend relative to the competition, which is part of our plan to expand our inventories a bit between now and the transition to our all-new F-150,” he explained. “We need our inventories to be higher in order to prepare for the weeks that we’ll be down due to the transition between models when we won’t be building F-150s. It’s important that we have enough stock on our dealer lots to satisfy customer demand during the changeover.”
Merkle pointed out that F-Series incentive spending was lower than Chevrolet and Ram pickups in May and average transaction prices were higher – markedly so.
“We still outsold Chevrolet and Ram new pickups, with an F-Series that is at the end of its lifecycle with less cash and a higher average transaction price,” he said. “If that doesn’t speak volumes about the strength of F-Series, I don’t know what else does.”