| Are Ford's Sales Gains Better Than They Look? This week, analysts from TrueCar. economy. 1 million but still a strong number that bodes well for the U. S. How can this be? Nearly all of Ford's products are at or near the top of their market segments in most reviews. So why are Ford's sales down? Here's why: Fleet sales -- bulk sales of cars or trucks to corporate customers, governments, and rental-car firms -- were long seen as a way for the Detroit automakers to keep factories running at full speed. Sometimes, with less-competitive or dated models, fleet sales represented a huge percentage of total production – production that wasn't making much money for the automaker. It's the rental cars that can be problematic. 7% over the year-ago month, while Edmunds sees a 17% gain. sales, down from 33% in 2011. Edmunds' total translates into a seasonally adjusted annualized rate (or "SAAR," a widely watched auto-sales metric) of 14. Those declining fleet sales have obscured Ford's retail gains to some extent. Here's the upshot: Yes, Ford's overall sales have recently been growing more slowly than those of its key competitors. to be up 13. Fewer sales, but more profits? So far this year, Ford's total fleet sales have accounted for 31% of its U. And a larger percentage of those are commercial and government sales: Through February, Ford's sales to rental-car companies were down 7%, according to Erich Merkle, the company's sales analyst. Like other forecasters, TrueCar and Edmunds both see overall March auto sales coming in strong. |
Sunday, 1 April 2012
Are Ford's Sales Gains Better Than They Look?
