Ford Motor Company (NYSE:F) is seeing fantastic sales trends in the two largest automotive markets in the world – the United States and China. In the U.S., sales are so strong that the company is struggling to keep up with demand. The market is eagerly waiting to see Ford Motor Company (NYSE:F)’s new capacity for Fusion sedans and F-150 trucks come online in the third quarter. In China, sales are exploding as the company rapidly gains market share.
Solid demand for cars
In July, Ford Motor Company (NYSE:F) increased its year-over-year sales by 11% to 193,715 vehicles, slightly short of the 200,000 vehicles expected by analysts. Retail sales were up by a robust 19%, however. Sales would have been higher if the company could have supplied more Fusion sedans and Escape crossovers.
Fusion sedans are flying off of dealer lots. In July, retail sales were up 70% in California, which is turning out to be this model’s hottest market. According to Edmunds.com, Fusion sedans stay on dealer lots for just 29 days on average — one of the fastest turn rates seen in midsize sedans. Fusion Hybrid vehicles stick around for less than 20 days.
Fiesta and Focus compacts have struck a chord with the Millennial generation. According to research by Polk, Ford Motor Company (NYSE:F) has sold 80% more cars to this demographic in the first half of 2013 as compared to the first half of 2009. The Millennial generation is an important target group for the company as they are likely to develop brand loyalty and stick with the Blue Oval, even when they upgrade cars in future.
F-Series sales remain strong
Ford Motor Company (NYSE:F) continues to see solid momentum in its bread and butter, the F-Series trucks. In the last three months, the company has sold more than 200,000 F-Series pickups. July sales were up 23% year over year to 60,449 pickups.
The U.S. truck market is booming as life returns to the housing sector. Housing construction propels truck demand, as contractors and builders buy trucks to carry building materials. New housing starts were up 5.9% in July to a seasonally adjusted annual rate of 896,000 , and analysts are expecting around 900,000 starts for all of 2013.