Demand for pickups will continue
As the three domestic truck makers continue to fight for additional sales, one thing is for certain. The demand for pickups will continue. The segment grew by a huge 21% in the first five months of the year, almost triple the rate of the overall industry. And if the barometers are giving the right readings there is more to come.
Construction and house building are the key drivers for pickups as contractors buy trucks to transport building materials. Data released by the US Census Bureau and the Department of Housing and Urban Development show that April SAAR for building permits reached 1.02 million, up 14.3% over the March rate of 890,000 and 35.8% over the April 2012 rate of 749,000.
The pickup segment has received an additional boost from record energy production levels in the US. There is a flurry of exploration activities going on in Texas and North Dakota and the exploration companies are buying trucks by hordes.
Other winners from Ford’s stable
Fusion and Escape are the hottest-selling Ford cars. The Fusion is a strong contestant in the mid-size sedan race, with sales up 21.7% through May. The segment is very competitive and completely ruled by the Japanese cars – Toyota Camry, Honda Accord, and Nissan Altima.
Ford Motor Company (NYSE:F) is the only domestic contender putting up a solid performance. Chevrolet Malibu has been faltering with May sales down 36.1% to 18,899 units. General Motors Company (NYSE:GM) will launch the 2014 model this fall. Chrysler 200 sedan, which was launched with lot of fanfare in 2011, has lost its momentum. Chrysler is preparing to make a comeback with its 2015 model. Meanwhile, Ford sold around 26,722 Fusions in April and 29,553 in May.
Escape is Ford’s representative in the growing small utility segment, which in April accounted for 15% of the industry. Escape has already beaten erstwhile champion Honda CR-V in the first five months of the year. The former is up 29.7% during this period while the latter is down 3.4%.
Net-net
It all boils down to the fact that Ford Motor Company (NYSE:F) is emerging as a leading performer in all the key segments of the US auto market. It has always been the champion in pickups with the F-Series and is now establishing itself firmly in the mid-size segment with Fusion. This takes care of the two largest slices of the vehicle market. Solid demand for Escape, Focus, and Explorer completes the picture.
Eshna De has no position in any stocks mentioned. The Motley Fool recommends Ford and General Motors Company (NYSE:GM). The Motley Fool owns shares of Ford Motor Company (NYSE:F).
The article This Automaker Is Unstoppable originally appeared on Fool.com.
Eshna is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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