CNBC Business reported that Ford Motor’s U.S. new vehicle sales dropped 10.3% in August, extending a year-over-year slide. The automaker is nevertheless increasing production of its F-Series pickup trucks and expects more vehicles to reach dealers. August was the eighth consecutive month in which Ford Motor recorded lower U.S. new vehicle sales than in the same month a year earlier.
Rob Kaffl, Ford Motor’s head of U.S. sales, said the production increase should become visible to dealers over the next 30, 60 and 90 days. F-Series output, including the F-150 and larger versions, has risen every month this year and is now around historical levels or slightly higher. Ford Motor said August production of the F-150 reached 57,504 units, its strongest monthly result in two years.
The supply improvement comes as F-Series sales remained 10.9% below the prior-year level through August, including a 1.2% decline in the latest month. Ford dealers had about 40 days of pickup inventory, roughly half the level the industry has generally viewed as healthy. Kaffl said Ford Motor is aiming for an inventory range of 50 to 60 days while carefully aligning factory output with demand.
The production shortfall followed fires at an aluminum supplier’s New York plant, and Ford Motor expects the disruption to cost $1.5 billion this year. The automaker also pointed to discontinued vehicles, reduced sales to daily rental fleets and the timing of Labor Day as factors affecting comparisons. Ford Motor estimated that U.S. new vehicle sales across the industry declined 6%.