The coronavirus pandemic created numerous obstacles for the US automotive industry in 2020, as effects from earlier factory shutdowns continued to linger throughout the year.
As a result, Ford’s US vehicle sales came in 15.6% below 2019 levels, as sales of the automaker’s popular pickup truck, the F-150, declined by 33% in the fourth quarter. The lower-than-usual sales were the result of factory shutdowns earlier in the year in response to the pandemic, coupled with a transition in production of the facilities to produce Ford’s redesigned F-150. By the end of 2020, inventories of the pickup truck dropped to 141,000 units, compared to 267,000 units a year prior.
Ford’s SUV sales dropped by 9.7% on a year-over-year basis in December, while truck sales declined by 11.3% in 2020. The automaker’s sales of passenger cars, which are being discounted except for key models including the Mustang, plunged by 44.7% compared to last year. However, Ford is not the only automaker that endured a decrease in sales; the overall US automotive industry is expected to suffer a decline of approximately 15% to 14.5 million vehicles — the lowest level of domestic sales since 2012, according to Edmunds.
Information for this briefing was found via Ford and Edmuds. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.