“Cash For Clunkers” Looks Like a Winner for Ford
By Brendan Moore
Ford has posted their July sales results, and is showing a sales gain from the previous month, the first time that a month-to-month increase has occurred for Ford in a l-o-n-g 19 months.
And, it happened while other major automakers in North America showed declines (again) in July, just like the previous months. The overall market declined 12.2% compared to the same month last year, but the good news is that the rate of market decline seems to be lessening.
Ford sales analyst says the cash for clunkers program pushed Ford to the small gain of 2.4%, and that small overall gain was led by some huge sales gains in sales of specific fuel-efficient models.
As an example, sales of the Focus were up 44 percent, and Fusion went across the curb at a 66 percent greater rate. The Escape SUV, which offers both a hybrid and gasoline version, almost doubled, and the antediluvian, but small, Ranger pickup rose 65 percent.
The people at Ford have to love the cash for clunkers program.
Even before the public announcement of the results, Ford U.S. sales chief Ken Czubay said the effect of the federal program is “a very good indication for the economy Ford realized a “substantial increase in business” after the July 24 kickoff of the clunkers program, he said. He added, “That kicked us over the top.”
This is not to say that other automakers did not benefit from the federal program; they did, of course. This was most pronounced at auto manufacturers’ that had a good selection of fuel-efficient models for consumers to choose from. Nonetheless Ford was the one of the few companies that put it all together to register a gain, with Hyundai and Subaru joining them in the “plus” column.
Toyota, GM, Honda, Nissan, Suzuki, Chrysler, and Mitsubishi were in the group of numerous automakers that suffered a decline in sales compared to the previous year.
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