Ford’s hybrid: Ford Motor saw a small gain in sales this year, with a significant increase in hybrid vehicles offsetting an 11% decrease in all-electric cars and trucks.
- KEY POINTS.
- Ford began the year with a modest boost in sales, driven by an increase in hybrid vehicles that offset a decrease in all-electric cars and trucks.
- Sales jumped 4.3% in January compared to the previous year, with hybrid sales increasing by 43% and standard vehicles with internal combustion engines up 2.6%.
- Ford is set to reveal its fourth-quarter and year-end earnings figures Tuesday after the bell.
The Detroit carmaker stated on Friday that sales increased 4.3% last month from January 2023, driven by a 43% increase in hybrid sales and a 2.6% increase in traditional vehicles with internal combustion engines. Last month, Ford sold 152,617 automobiles.
The increase in hybrid sales is part of Ford’s strategy to double down on the technology. Hybrid demand has risen, although electric vehicles such as the F-150 Lightning pickup and Mustang Mach-E crossover have taken longer than projected to gain traction.
Sales of the Mach-E fell 51% to start the year, while sales of the F-150 Lightning fell less than a half percent. Ford is increasing production of its E-Transit electric vehicle, with more than 1,100 units shipped in January compared to less than 400 a year ago.
Despite the emphasis on hybrids, Ford sold 90% of its vehicles last month, including regular cars and trucks. Hybrids, headed by the Ford Maverick truck, accounted for 7.3% of sales. EVs accounted for approximately 3% of total sales, with less than 5,000 units sold. Last month, sales of Ford’s highly profitable F-Series pickups plummeted by around 12% to over 48,700 units.
Ford disclosed its January sales figures just days before reporting its fourth-quarter and year-end earnings on Tuesday after the bell. Ford’s crosstown rival, General Motors, recently posted results and a 2024 outlook that exceeded Wall Street expectations. GM’s stock rose sharply following reports, and shares are up more than 7% this year. Ford’s stock fell by around 1% in 2024.
FAQs
Is Ford stopping EV production?
In April, Ford will shut down one of two manufacturing shifts at the F-150 Lightning electric pickup facility in Dearborn, Michigan. The change is part of “matching F-150 Lightning production to customer demand,” the firm stated on Friday.
How many EVs did Ford sell in 2023?
Ford’s electric vehicles had record Q4 sales, capping off a milestone EV year. Ford sold 25,937 EVs in Q4 (up 24% over Q3 sales) and 72,608 vehicles for the year (up 18%).
What is Ford’s EV strategy?
Ford will invest more than $50 billion in electric vehicles globally by 2026 to build game-changing EVs. The company intends to produce them at scale, with a run rate of 600,000 electric vehicles worldwide by 2024, and eventually 2 million.
Why is Ford slowing down EV production?
Ford announced this month that it will reduce production of its trademark F-150 Lightning truck from 3,200 to 1,600 units per week due to weakening demand. In November, it launched work on an EV battery plant, but with reduced ambitions, estimating that it would produce around 40% fewer batteries than intended.
How many Ford EV sales are there?
Despite having cut back its 2024 EV goals in response to weaker market demand, Ford’s yearly EV sales grew 17.9% to nearly 26,000 units, with sales of the electric F-150 Lightning rising 54.7% to 24,165 in 2023. Additionally, sales of the automaker’s hybrid vehicles are increasing.
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