DETROIT -- Ford Motor Co. rode high-priced pickups and SUVs, along with strong demand for luxury vehicles, to a 0.1 percent December sales gain, but full-year sales dropped slightly as demand for sedans continues to fall.
The automaker sold 237,785 vehicles in December. It eked out a 179-vehicle increase compared with the same month a year ago thanks to an 18 percent bump in Lincoln sales; Ford brand sales fell 0.8 percent.
“December marked Ford’s best retail performance since 2004, with average transaction prices increasing $1,600 for the month -- $1,000 more than the industry average,” Mark LaNeve, Ford vice president, U.S. marketing, sales and service, said in a statement. “Thanks to strong customer demand for F-series, Transit and an all-new lineup of heavy trucks, Ford capped 2016 as America’s best-selling truck brand.”
For the full year, Ford Motor’s sales fell 0.1 percent to 2,599,211, excluding medium- and heavy-duty trucks. Lincoln sales jumped 10 percent while Ford brand sales fell 0.6 percent.
The automaker’s car sales plunged 13 percent for the year, while SUV/CUV sales rose 4.3 percent and pickup sales jumped 6.1 percent.
“As Ford heads into 2017, their big puzzle continues to be sedans,” said Akshay Anand, analyst for Kelley Blue Book. “Their utility vehicles and trucks continue to show pops for various models, but declining car sales continue to be a story that the brand hasn’t solved yet, and the same goes for several other automakers. Until Ford solves this conundrum, brand sales may continue to be flat.”
Ford forecasts 17.8 million new cars and trucks, including medium- and heavy-duty trucks, will be sold in the U.S. in 2016, and 17.7 million will be sold in 2017. While Ford expects the market to plateau, it says positive market conditions -- including low interest rates, high consumer confidence and demand for higher-priced trim levels -- will keep business healthy.
“The market, while it plateaued in volume in 2016, within that, mix is incredibly strong,” LaNeve said. “We’ve seen a move into utilities, vans and trucks, which really plays into our strength.”
Ford sold 87,512 F-series trucks in December, a 2.7 percent increase. F-series’ average selling prices rose $1,700 to $44,700, compared with the same month a year ago.
Its aluminum-bodied Super Duty, which went on sale late in 2016, posted a $5,400 selling price increase to $55,100. LaNeve said the three most expensive trim levels represented 65 percent of December Super Duty sales.
Ford has been reducing inventory in recent weeks and said it had a 70 days supply of vehicles in December, down from 83 in November and 79 in December 2015.
Erich Merkle, Ford’s U.S. sales analyst, said the automaker ended 2016 “in a very good position from an inventory perspective as we go into the new year.”
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