Ford posts rare jump in monthly sales

[Bluehoon]

Ford Motor Company said it had sold more cars in July than the same period a year before, the first year-on-year sales increase since November 2007.

Ford sales specialist George Pipas told the Wall Street Journal a surge in sales at the end of the month was thanks to the US government's multi-billion-dollar "cash for clunkers" car trade-in program.

"I am not sure we would have gotten the bump except for the last week," Pipas told the daily.

He did not state what the figures would be, but said the rise would be "notable". Ford is expected to publish its July sales figures on Thursday.

"The two goals of the (cash for clunkers) program were to jump start auto sales as a way to start the recovery and to get buyers into more fuel-efficient cars," Pipas said.

"On both counts, it's going to be a home run."

The program got fresh backing from US House of Representatives on Friday, when lawmakers voted for a $US2 billion ($2.43 billion) funding boost for the program.

The vastly popular scheme burned through $US1 billion ($1.21 billion) in its first week after spurring the sale of about 200,000 vehicles.

Pipas comment mark the latest in a slew of more optimistic data from Ford, the only member of the Detroit Three automakers to have avoided bankruptcy.

On July 23 announced it had swung back into profitability in the second quarter.

The firm posted a net profit of $US2.3 billion ($2.79 billion) between April and June, due to cost cutting and a $US3.4 billion ($4.12 billion) one-off debt restructuring.

That compared with a whopping $US8.7 billion ($10.55 billion) loss in the same period a year ago.

The automaker said it had managed to increase its market share in all regions in the second quarter, including a two point gain to 16.4 per cent of the key US market.

At the closing bell in New York on Friday its shares hit a 52-week high, trading at $US8 ($9.70) a piece.

http://business.smh.com.au/business/...0803-e67r.html

Interesting news...

[Falc'man]

The bankrupt two have left a bad taste in the mouths of people over there, they feel a little cheated of their taxpayer dollars.. on the other hand Ford look like the heros. They never stopped spending on new models in the midst of the crisis. It seemed like a massive gamble; spending the most when others were scrambling for the last dollar. They've played their cards perfectly.

[Road_Warrior]

Too early for AU sales I take it...?

[vztrt]

Tomorrow it should be out actually.

[Swordsman88]

Originally Posted by Falc'man

The bankrupt two have left a bad taste in the mouths of people over there, they feel a little cheated of their taxpayer dollars.. on the other hand Ford look like the heros. They never stopped spending on new models in the midst of the crisis. It seemed like a massive gamble; spending the most when others were scrambling for the last dollar. They've played their cards perfectly.

This is the key. Rationalisation of product lines, platforms etc. is understandable and even desirable. Especially given the GFC. BUT....R & D must continue and in particular development of new/updated/advanced models is needed not just to have good product but to project a good image.

GM/Chrylser have been hurt by both the perception...and in the latters case particularly, reality of a dearth of new and most importanly good product. They appear old hat....Government Motors doesn't have any good stuff to show for themselves.

Tomorrow we will see Holden launch their 'new' engine lineup for commodore. I dont' know what it will feature in terms of the exact specifics but if the experiences of GM in the states (who recently launched the same engines) is anything to go buy i'm not holding my breath. Its all a bit too little too late i'm afraid. Ford will benefit from this not just because GM/Chrysler are weak in perception but weak in product too.....

[Iggypoppin']

Fantastic news. Just like the cars they make, they just won't die. Did everything right, predicted the GFC and subsequently mortgaged their assets, and it paid off. Well done guys, anyone supporting blue oval should feel darn tingly in the pants right now.

[vztrt]

Sales boost offers hope for auto sector

http://news.theage.com.au/breaking-n...0804-e7mg.html

Sales boost offers hope for auto sector
August 4, 2009 - 8:29AM

Rising car sales are offering a glimmer of hope for the depressed international auto sector, but analysts stress that the positive data is largely dependent on temporary government bonus schemes.

The auto sector was one of the first to be hit by the global economic crisis because of a collapse in demand for cars and it is being closely watched by economists as an indicator for any signs of economic recovery.

In the United States, Ford Motor Co. reported Monday its first increase in sales in almost two years, posting a 2.3 percent increase in total sales in July to 165,279. Retail sales at its core brands -- Ford, Lincoln and Mercury -- rose nine percent to 118,197 vehicles.

Chrysler Group reported a nine percent drop in total US auto sales in July to 88,900 vehicles -- of which 76,693 were retail sales -- but said retail sales were up by 52 percent thanks to "cash for clunkers," a government-funded trade-in programme.

General Motors meanwhile posted a 19.4 percent drop in US auto sales in July but celebrated the programme, which helped boost sales for the final week of the month.

The automaker, which emerged from bankruptcy protection on July 10, said it expects its share of the retail market will come in higher than July 2008 despite a nine percent drop in retail sales to 155,569 vehicles.

France offered an upbeat assessment of its auto market, with the main auto manufacturers' group, the CCFA, reporting a 3.1-percent increase in new car sales in July from the same month last year.

Sales at France's biggest carmaker PSA Peugeot Citroen posted an impressive 11.4-percent rise and Renault sales jumped by 18.5 percent, the data showed.

But Guillaume Mouren, an analyst at market research company Xerfi, warned sales would fall after a government bonus scheme runs out later this year.

"Even if the bonus scheme is phased out gradually, there's still going to be a big fall next year," he said. "French people want to take advantage of the highest bonus and put in their orders before December 31."

Like many major economies, including Germany and the United States, France has implemented a bonus scheme for car buyers to trade in their old models in a drive to boost sales and promote more eco-friendly transport.

Germany, in particular, has seen a boom in car sales this year because of the scheme and its auto manufacturing federation was due to publish figures on Tuesday that are expected to show another rise in registrations for July.

Spain meanwhile is continuing to see a drop in sales year-on-year, although it is less steep than before, the ANFAC manufacturers' association said.

ANFAC said the latest figures, showing a total of 108,222 vehicles were registered in Spain in July, mark a "continuation of the slowdown of the decline" due to "the positive effects of direct aid on the market."

The picture for the world auto industry is still far from rosy however.

European and Japanese carmakers, including Daimler, PSA Peugeot Citroen and Honda, last week reported dismal results because of the economic crisis, although they remained upbeat about the prospects for a recovery this year.

Hopes for the auto sector are focused mainly on a recovery in Western markets and growth in key emerging economies such as China and India, while once-booming markets in Eastern Europe are still struggling with recession.

Russia's main automaker, Avtovaz, was reported last week to be considering cutting up to a quarter of its 110,000 workforce and the Czech Republic on Monday reported a 10.9-percent contraction in car output so far this year.

One government programme that is helping boost the troubled auto industry, analysts say, is US President Barack Obama's "cash for clunkers" plan, which offers owners of old cars and trucks up to 4,500 US dollars toward a new, more-efficient vehicle.

It has been described by supporters as a victim of its own success, practically burning through all of the one billion US dollars allocated to the programme in its first week after spurring the sale of about 200,000 vehicles.

The US House of Representatives voted Friday to pump another two billion US dollars into the programme. But the effort has hit opposition in the Senate, prompting Obama to invite all 58 Senate Democrats and their two independent allies to the White House for lunch on Tuesday.

© 2009 AFP

[vztrt]

US incentives arrest sales slide in July

http://www.goauto.com.au/mellor/mell...2576080009508B

US incentives arrest sales slide in July

Ford lifts sales and GM boosts production as US market bottoms out

By RON HAMMERTON 4 August 2009

THE fragile green shoots of auto industry recovery were evident in the United States last month as Ford managed a rare sales gain and arch rival General Motors announced plans to ramp up production by 35 per cent in the third quarter.

Fuelled by the new “cash-for-clunkers” incentive scheme introduced by the US government in the last week of July, the US new-vehicle sales slide eased as the industry recorded a 12 per cent decline on July last year – the lowest fall since May 2008.

The figures raised hopes that the industry might have seen the worst of the 27-year lows experienced this year.

Ford – the only “big three” US car-maker not to file for Chapter 11 bankruptcy – welcomed back buyers into its showrooms in increasing numbers, lifting sales by 2.4 per cent in July to 164,795 units – more than 4000 vehicles above last year’s levels.

By contrast, GM sales declined 19.4 per cent, Chrysler was down 9.4 per cent, Toyota slipped 11.4 per cent and Honda slid 17.3 per cent.

Despite its sales hit, GM remained the market leader on 188,156 units, ahead of Toyota (174,872, including Lexus) and Ford.

Ford’s July sales increase was driven by the strength of its smaller vehicles, especially the Focus (up 44 per cent on July 2008) and Fusion (up 66 per cent).

These vehicles tapped into the low-end sales explosion triggered by government sales incentives of up to $4500 for buyers trading gas-guzzlers on more fuel-efficient car and trucks.

Automotive News reported that sales of the Ford Escape small SUV – which includes a hybrid version – almost doubled, while volumes of the Ford Ranger small pick-up climbed 65 per cent.

However, Ford warned that the economy was not strong enough to sustain the bull run in the showrooms, at least not until economic recovery begins to kick in at the end of the year.

After just six weeks, the cash-for-clunkers scheme has already exhausted the $US1 billion allotted by the US congress, which is now considering finding $2 billion more to extend the scheme.

Regardless, GM is sufficiently confident of the embryonic recovery to expand production by 35 per cent this quarter over the depressed levels of the second quarter when it was battling Chapter 11 bankruptcy.

The 535,000 vehicles it plans to build this quarter is still 42 per cent down on the 915,000 built in the same quarter last year, but well up on the 395,000 vehicles made in the second quarter and 371,000 vehicles in the first quarter.

GM has cut its stock inventory from 82 days to 76 days, according to Automotive News, giving it confidence to step up its manufacturing pace.

Of the importers in the US, Hyundai and its subsidiary Kia continue to kick goals, with combined sales increasing nine per cent month-on-month as the Koreans take advantage of the cash-for-clunker bonuses.

Combined, Hyundai and Kia have now leapfrogged Nissan, whose sales in the US are down 32 per cent this year.

Subaru is also on the climb in the US, with July sales up a whopping 34 per cent on July 2008. It is one of the few sizeable players to record a year-to-date gain, up 4.3 per cent.

American Mitsubishi sales, on the other hand, have halved this year. In July, it sold just 4847 units, compared with 9644 for the month last year.

[Ohio XB]

The US House of Representatives voted Friday to pump another two billion US dollars into the programme. But the effort has hit opposition in the Senate, prompting Obama to invite all 58 Senate Democrats and their two independent allies to the White House for lunch on Tuesday.

This has been a tactic of Obama in many instances where there is opposition to his ideas. Metaphorically, these meetings have gone something like this when it has been the private sector....

Before the meeting:
"Your plan will ruin my business, be unfair to my clients, and increase costs to my customers. I catagorically oppose this plan as there is no good to come from it."

After the meeting:
"I will work with this Administration to help promote the execution and success of his wonderful program."


Now tell me......what does it sound like happens in these "meetings" or "lunches"?? Do you think it will work on career Senators? Obama pledged bi-partisanship, so why aren't Republican Senators invited? I am guessing that Obama is going to school the Democrat Senators on how to "convert" Republican Senators.

After just six weeks, the cash-for-clunkers scheme has already exhausted the $US1 billion allotted by the US congress, which is now considering finding $2 billion more to extend the scheme.

This is wrong, it was after ONE week of the program being instituted. They figured $1 billion US would last until November. It lasted one week. These are the same people that want to create a government run healthcare program.



On Topic.....The Ford Focus was the biggest seller of cars for this program. Though this is all good news Ford is not resting, not even letting up a little. This was a "blip" and that is all, though it does show when people do buy cars they are really looking at Ford products now, so when the economy gets better that is a real positive sign that there will be good traffic in showrooms.



Steve

[TUF_302]

Excellent news from Ford US, it was only a matter of time before people realised that the other two where going bust and that Ford wasn't willing to put themselfs in the hands of the government, good stuff!