While the North American auto industry might not have reached a turnaround yet, the future is looking brighter for one U.S. automaker – Ford. The Ford Motor Company has announced that it is expecting that sales for the month of June (due in today) will be anywhere from 10 to 20 percent lower than the same month a year ago.
That might not sound like great news, but when the industry average is still in the negative 30 percent range, Ford certainly seems to be bucking a trend.
“The underlying economic indicators, meaning fewer jobless claims, another month of somewhat higher levels of consumer confidence, suggest to us that the worst is behind us in terms of not only the economy… but also that we may have seen the low point of auto sales,” said George Pipas a sales analyst for Ford.
This news also means that Ford is continuing to gain market share in the U.S. In May the automaker posted a total share of the U.S. market at 17.4 percent, up from 15.5 percent a year earlier.
In response to a mild turnaround and increased demand in Ford product, the company will increase production during the third quarter by 25,000 vehicles to 485,000 vehicles. This amounts to a 16 percent increase over the same period a year ago.
Ford is seeking to stabilize its inventory supply at 60 days, up from the current 58 day period. The current industry average is 67 days.
While Ford posted a record loss of $14.7 billion in 2008, company executives are still forecasting a return to profitability by 2011 – and this latest news seems to confirm it is on the right track.
[Photo Credit: Anderson Ford]