Ford’s US sales decline narrows in May amid tight supplies

The Mustang Mach-E is Ford’s first new all-electrical car or truck less than an $11 billion financial investment system in electrified cars through 2022.

Michael Wayland / CNBC

Ford Motor explained Thursday that its U.S. profits fell just 4.5% in Might from a year in the past, a narrower decrease than in current months, as it ongoing to see white-sizzling demand from customers for its most up-to-date automobiles amid limited provides of new cars and trucks, trucks and SUVs.

Ford and other automakers are continuing to fight by source-chain challenges, which include a global shortage of semiconductor chips, that has hampered new vehicle production all-around the globe for around a year. Ford’s every month U.S. product sales were down by more than 10% in April and by additional than 20% in February and March.

A Ford spokesperson explained the organization estimates that over-all U.S. new car income have been down about 30% from a year back in May perhaps, indicating that Ford probably received industry share.

Ongoing disruptions to Ford’s manufacturing have led to limited inventories at its sellers. In response, Ford has presented incentives to prospects who are prepared to place orders for their motor vehicles and hold out for them to be developed and shipped. Just about fifty percent of Ford’s retail income in Might came from purchaser orders positioned previously in the yr, the firm stated in a assertion.

With chip provides still limited, Ford has been prioritizing generation of its most recent types, which include the electric powered Mustang Mach-E crossover, the Bronco SUV, and the little Maverick pickup, as perfectly as its hugely profitable mainstays, these types of as the F-Series pickups and the massive Ford and Lincoln SUVs.

Gross sales of Ford’s F-Series pickups, an crucial driver of the company’s gains, have been up 6.9% in May perhaps from a calendar year back. Deliveries of the Mustang Mach-E were much more than double the model’s calendar year-ago overall.

From January via May, Ford has sold 763,558 autos in the U.S., down 13.3% from the same period in 2021.