Ford: Decline in car sales in the United States in the first quarter, with accessibility issues weighing.

Ford Motor announced on Thursday a drop of over 9% in its sales in the United States in the first quarter, as persistent financial pressures prompt consumers to rethink their significant purchases.

Rising financing costs, high prices, and the expiration of federal tax credits for electric vehicles have dampened demand for new cars in the United States.

Ford’s truck sales fell by 11.3% during the quarter ending on March 31, while SUV sales dropped by 7.8%, reflecting a decline in showroom traffic for its core lineup.

The automaker’s shares based in Dearborn, Michigan, were down by 2.5% in the morning amid a general market decline.

The ongoing conflict in the Middle East continues to weigh on sentiment, as rising energy prices due to the war burden household budgets.

Although fuel price hikes typically boost interest in electric vehicles, analysts believe demand for EVs could remain under pressure due to high prices and reduced incentives.

Ford’s electric model sales dropped by around 70% due to decreased demand following the disappearance of federal incentives.

Overall car sales in the United States fell by 5.3% in the January-March period compared to the previous year, according to research firm Omdia. Ford’s rivals, General Motors and Toyota, also reported a sales decline on Wednesday.

Financial accessibility concerns have led buyers to opt for more affordable entry-level versions, prompting automakers to expand the availability of value versions.

Combined sales of Ford’s entry-level versions of the Maverick, Ranger, and Bronco Sport increased by 8.4% during the quarter.

Ford’s total sales fell to 457,315 vehicles for the quarter, down from 501,291 a year earlier.