Ford’s June swoon: Sales plunge 28 percent
DETROIT — With gasoline prices at record highs and consumer confidence at record lows, U.S. auto sales declined sharply in June.
Ford Motor Co. sales were down 29.5 percent in June compared to June 2007. It sold 173,462 vehicles last month. Ford sales were down 14.5 percent in the first half of 2008 compared to last year.
Ford sold 1,172,521 vehicles in the first half of 2008. This was the first month that Ford’s sales numbers didn’t include Jaguar and Land Rover. Its sale of those brands to Tata Motors closed June 1. The figures in this story include Jaguar and Land Rover sales from prior periods and are not adjusted for sales days.
“Consumer fundamentals and consumer confidence deteriorated as the first half unfolded,” said Jim Farley, Ford’s vice president for marketing and communications, in a statement. “The economy enters the second half of the year with a notable absence of momentum and a high degree of uncertainty.”
By the end of June 2008, gas prices were up almost 40 percent from a year earlier. That hurt automakers reliant on trucks and SUVs. It also gave a boost to companies that sell lots of small cars.
Large declines
The huge increase in gas prices hit sales of large vehicles the hardest.
Ford’s SUV sales declined 55.0 percent in June. They were down 34.2 percent in the first half of the year compared to the first six months of 2007. June sales of Ford’s once-bestselling F-Series pickup trucks dropped 40.5 percent. Sales of the Expedition were down 59.8 percent, while sales of the Explorer dropped 52.0 percent.
The average price of a gallon of unleaded regular gasoline rose 2 percent last month. Gas is up 38.2 percent from a year ago.
Small gains
Automakers that make small cars saw small sales increases in June.
Volkswagen of America Inc. said its sales increased 0.3 percent in June from a year ago, to 23,208 vehicles. It was VW’s best sales month since August 2006.
Sales of the Beetle increased 8.5 percent and the convertible Eos’s sales rose 14 percent. VW’s Touareg SUV also did well. Its sales rose 8.5 percent. Sales of VW’s most popular model, the Jetta, were down 8.5 percent, to 8,973. VW sales were up 0.6 percent for the first half of 2008 compared to the first half of 2007.
Ford’s Fusion sedan did well in June. It was the brand’s only model that posted a sales increase in June compared to a year ago, rising 18.4 percent. On a year-to-date basis, Fusion sales increased 11.7 percent. Ford’s total car sales were down 12.0 percent from June 2007, but up 0.1 percent in the first half of this year from the first half of 2007.
The Focus also remains a bright spot for Ford. Its sales were down 5.5 percent in June compared to a year ago, but they were up 27.6 percent year-to-date.
The Mercury Milan and Volvo’s V70 and C70 were the only other Ford models that posted sales increases in June.
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