Ford Motor announced on Thursday a drop of over 9% in its sales in the United States in the first quarter, as ongoing 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 decreased by 11.3% in the quarter ending March 31, while SUV sales dropped by 7.8%, reflecting a decrease in showroom traffic for its entire core lineup.
The automaker’s shares were down 2.5% in the morning, amid a general market decline.
The ongoing conflict in the Middle East has continued to weigh on sentiment, as rising energy prices due to the war impact household budgets.
Although fuel price increases generally boost interest in electric vehicles, analysts believe the demand for EVs could remain under pressure due to high prices and reduced incentives.
Ford’s electric model sales plummeted 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 competitors, General Motors and Toyota, also reported a sales decline on Wednesday.
Financial accessibility concerns have also led buyers to opt for more affordable entry-level versions, prompting car manufacturers to expand the availability of value offerings.
Combined sales of entry-level versions of Ford’s Maverick, Ranger, and Bronco Sport increased by 8.4% during the quarter.
Ford’s total sales dropped to 457,315 vehicles for the quarter, down from 501,291 the previous year.
[Context: Ford Motor experienced a significant decline in sales in the United States in the first quarter, affected by various factors including financial pressures and a drop in electric vehicle demand.] [Fact Check: The source of the translation is indicated as Reuters using automated machine learning and generative AI.]
