In May surprise, Ford does a number on GM in auto sales
SUVs, pickups lead way as automakers add more discounts
In a surprise, Ford Motor edged its archrival and perennial first-place automaker General Motors when it came to sales last month.
Although likely a temporary blip, Ford outsold crosstown rival GM by about 3,000 new cars and trucks in May, making it the largest automaker in the U.S. market, for now. It was the first time Ford outsold GM since March 2016. Before that, it hadn’t happened since March 2011.
Ford’s sales rose 2.3% for the month compared to the same month last year, GM was down 1.4% and the third of Detroit’s Big 3, Fiat Chrysler, was down 0.9%, Autodata reported. Overall, all automakers selling new vehicles in the U.S. saw a 0.5% drop for the month. Toyota sales were off 0.5%, but Honda and Nissan posted slight gains among Japan’s Big 3.
Following Ford’s stunning removal of Mark Fields as chief executive last month amid consternation over the company’s stock price, investors have been watching Ford closely as it tracks a new direction under new CEO Jim Hackett.
The company’s 2.3% sales increase in May, fueled by strong sales of sport-utility vehicles and pickups, inspired some fresh confidence. Ford stock increased 2.6% Thursday to close at $11.41.
Despite GM’s unexpected sales decline of 1.4%, the company also enjoyed a stock boost. GM shares closed up 1.5% to $34.43.
The rivalry between GM and Ford is prone to occasional flareups. Ford sales chief Mark LaNeve acknowledged that when Ford tops GM, it’s typically because the company sold more ve- hicles to fleet customers, which include rental car companies.
“It feels good for about 10 seconds and then we move on,” he said on a conference call.
Still, Ford’s most important model, the F-150 pickup, cemented its role as the nation’s top-selling vehicle by outdistancing the competition for the month with a 12.8% sales gain.
In another surprise, Ram’s fullsize pickup was the second bestselling vehicle for the month ahead of Chevrolet’s Silverado, which is usually No. 2. And Chevy has been heavily promoting its truck in TV ads.
GM spokesman Jim Cain said GM had made a “conscious decision” to lower its reliance on rental car sales, which are less profitable than retail units. “The quality of our sales was much higher,” Cain said in an email.
The rivalry between GM and Ford is a “silly” sideshow, Autotrader analyst Michelle Krebs said.
“Yes they have the strong rivalry, but to focus on each other is just the wrong focus,” she said. “There are so many other competitors around them they need to be paying attention to.”
Overall, heightened competition among automakers kept new-vehicle sales humming along at a high pace in May, but increasing discounts took a bite out of the bottom line.
Analysts at Kelley Blue Book and Edmunds.com projected U.S. auto sales would rise 0.2% and 0.3%, respectively, compared to a year earlier. It would mark the first monthly sales increase of the year.
Incentives are enticing consumers to take the plunge. For example, dealers boosted auto financing incentives by 33%, compared to a year earlier, Edmunds.com analyst Jessica Caldwell said in a report.