Despite high prices for cars and trucks, demand is still high, reflecting pent-up appetite for new vehicles that has been hampered by supply chain shortages. The Wall Street Journal’s Nora Eckert reports:
A global shortage of microchips and low supplies of other auto parts continue to damp vehicle output, leaving dealership lots gutted and pushing car prices to records. Consulting firm AlixPartners LLP said that the semiconductor shortage will continue to affect the auto industry through 2024.
Ford’s stock dropped 1% to $11.20 on Tuesday, falling along with other automotive stocks amid a broader market selloff.
Consumer demand remains strong even in the face of high prices, Ford Chief Financial Officer John Lawler said last month.
“We’re looking for every indication and every data point we can to get a read on where the consumer is, where they’re headed,” Mr. Lawler said at a Deutsche Bank conference.
Ford attributed the higher sales in June to strong demand for new vehicles, with about half of retail sales coming from previously placed orders. Sales of its electric vehicles rose 76.6% in June to 4,353, the company said, adding that higher dealer stocks of its F-150 Lightning and Mustang Mach-E should bolster EV sales in July.
Sales of Ford’s F-series were up by more than one-quarter in June, with the truck line outselling its nearest competitor by about 40,000 vehicles, according to Ford, and making up almost 38% of the auto maker’s overall sales mix.
The company said its share of the overall pickup-truck market in June increased by about 7 percentage points from last year to 29%.
Ford brand SUV sales were up 35.3% in June, driven by its Bronco and Explorer models, the company said.
If you’re willing to fight for Main Street America, click here to sign up for the Richardcyoung.com free weekly email.