Finance

Ford sales jump in January, surpassing Toyota, but EV growth stalls


Ford (F) reported that the U.S. market got off to a strong start this year, with sales surging in January, even surpassing Toyota (TM value), last year’s sales king. However, electric vehicle sales have suffered setbacks.

Ford reported that U.S. sales increased by 4.3% in January to 152,617 vehicles. The automaker’s U.S. market share reached 13.7%, an increase of 0.3 percentage points from the same period last year. Toyota reported that U.S. sales increased by 23.3%, but sales in January were only 143,241 vehicles. . Since 2023 vehicles. It has been hit by chip shortages and inventory issues in 2016 and is still working to build up supply.

The 2024 Mustang Mach-E electric vehicle is shown off at a Ford dealership on Sunday, January 21, 2024 in Broomfield, Colorado. More than 4,700 auto dealers across the U.S. signed a letter to President Joe Biden on Thursday, again urging him to halt enforcement of tougher vehicle standards just weeks before the Environmental Protection Agency rules on his emissions proposals .  (AP Photo/David Zalubowski)

The 2024 Mustang Mach-E electric vehicle is on display at a Ford dealership on Sunday, January 21, 2024 in Broomfield, Colorado. (AP Photo/David Zalubowski) (Associated Press)

As for Ford, the company said results were driven by record sales of its Maverick compact pickup truck (12,443 units) and trucks and vans, which totaled more than 80,000 units. Ford estimates it sells 15,000 more trucks and vans than its second-largest rival General Motors (General Motors) (GM does not release monthly sales figures, however.)

Ford’s hybrid vehicle sales rose again, with overall hybrid vehicle sales increasing 42.7% from the same period last year to 11,157 units.

However, good news for hybrid vehicle sales came from a decline in electric vehicle sales in January, with all-electric vehicle sales down 10.9% year-over-year to 4,674 units. Mustang Mach-E The loss of the federal electric vehicle tax credit, cold weather and other concerns are beyond the scope, and higher interest rates could hurt electric vehicle sales at the beginning of the year.

Ford has to revise its electric vehicle strategy and increase investment in this field. Cut production of Lightning EV pickup and other models.

Ford CEO Jim Farley discussed concerns about the future of electric vehicles with Yahoo Finance earlier in mid-January, suggesting price was key to the demand equation.

“So our electric cars [sales] “The market is growing, but prices have to come down, and what that really tells us is mainstream customers. They’re not willing to pay the same premium as early adopters,” Farley said.

Farley, however, is bullish on hybrid sales, saying Ford ranks second in U.S. hybrid sales behind Ford by offering truck options like the F-150 with gasoline, hybrid or electric powertrains. Toyota.

DETROIT, MI - JANUARY 14: Ford CEO Jim Farley watches the Detroit Lions against Los Angeles during the NFC wild card playoff game at Ford Field on January 14, 2024 in Detroit, MI Rams game.  (Photo by Nic Antaya/Getty Images)DETROIT, MI - JANUARY 14: Ford CEO Jim Farley watches the Detroit Lions against Los Angeles during the NFC wild card playoff game at Ford Field on January 14, 2024 in Detroit, MI Rams game.  (Photo by Nic Antaya/Getty Images)

Ford CEO Jim Farley watches the Detroit Lions play the Los Angeles Rams during the NFC wild-card playoff game at Ford Field in Detroit, Michigan, on January 14, 2024. (Nic Antaya/Getty Images) (Nick Antaya via Getty Images)

When Ford reports earnings after the bell next Tuesday, investors will be looking for more information on what’s next for electric vehicles and the company’s prospects for 2024. Farley believes the upcoming year will be a big one for the Dearborn, Miss.-based automaker.

“I’ve been leading the company for three years now, and 2024 is the first year that I can say we have a real chance of breaking through for a number of reasons,” Farley said. “We’ve resolved the labor issues and we’re negotiating in the U.S. But most importantly, we’re launching six new products and we’ve got brand new lineups with the Broncos and Mavericks.”

Pras Subramanian is a reporter for Yahoo Finance.You can follow him Twitter etc. Instagram.

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