Ford Reports Weak Q1 Sales as High Costs Hit Auto Demand, Reuters Reports

Ford Motor Company (NYSE:F) is included among the 15 Cheapest Stocks with Highest Dividends.

According to an April 2 Reuters report, Ford Motor Company (NYSE:F) reported a near 9% decline in U.S. sales for the first quarter, as ongoing affordability pressures led consumers to rethink large purchases. Higher financing costs and elevated vehicle prices played a role. The expiry of federal tax credits for electric vehicles also weighed on demand across the US.

Ford’s truck sales dropped 11.3% in the quarter ended March 31. Sport utility vehicle sales fell 7.8%, pointing to softer showroom traffic across its core lineup. Shares were down 2.5% in morning trading, in line with broader market weakness. The ongoing Middle East conflict added another layer of pressure. Rising energy prices, driven by the war, have strained household budgets. While higher fuel costs usually support interest in electric vehicles, analysts said demand may remain under pressure due to high prices and reduced incentives.

Sales of Ford’s electric models declined nearly 70% as demand weakened following the rollback of federal support. Affordability concerns have also pushed buyers toward lower-priced options. Automakers, including Ford, have responded by expanding entry-level variants. Combined sales of entry-level versions of the Maverick, Ranger, and Bronco Sport increased 8.4% during the quarter. Overall, Ford’s sales fell to 457,315 vehicles, down from 501,291 a year earlier.

Ford Motor Company (NYSE:F) is an automobile company. It develops and delivers Ford trucks, sport utility vehicles, commercial vans, and cars, along with Lincoln luxury vehicles and connected services. Its segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit.

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