Ford: Third-Quarter U.S. Sales Set New EV Highs

Most automakers reported their third-quarter or September U.S. auto sales on Oct. 3, with Wards putting the month’s deliveries to end customers up 18.5% from September 2022, or 13.9% after factoring in one more selling day this September. Third-quarter deliveries grew by 16.8%. The month’s seasonally adjusted annualized selling rate was 15.67 million, up from 13.70 million a year ago. J.D. Power estimated September incentives per unit at $1,806, which is 81% higher year over year but off a very low base, as poor supply from the chip shortage made discounting a low priority.

Incentives as a percentage of average MSRP are only 3.7%—quite low in absolute level terms, even though it’s up 160 basis points year over year. Demand remains robust as consumers realize pent-up demand from the start of the COVID-19 pandemic. The UAW strike will not help fourth-quarter numbers, and the Detroit Three entered September with about 40% less dealer inventory than they had just before the 40-day General Motors GM strike four years ago. However, the strike is hitting certain vehicles rather than all plants at once, and as of Oct. 4, it has not affected the production of full-size pickups or full-size SUVs.

On Oct. 4, Ford Motor Company F reported its third-quarter U.S. sales, which rose 7.7%. All-electric vehicles grew 14.8% to a record 20,962 on 42.5% growth in Mustang Mach-E deliveries and an 89.8% rise in E-Transit van sales. These increases more than offset a 45.8% decline in F-150 Lightning volume, as that vehicle’s Michigan production has been hampered for most of this year by quality issues and a six-week production stoppage to triple the plant’s annual production rate to 150,000 units. Lightning sales should rebound significantly in the fourth quarter if the UAW does not strike the plant. Overall F-Series volume increased by 13.4% and the Maverick compact pickup continues to do well, rising 83.4%. Lincoln sales only grew 1.8% as strong Navigator, Corsair, and Nautilus volume was offset by a 75% fall in the Aviator large crossover due to a camera recall.