Ford sales fell 10% in October despite overall industry gains. Supply-chain issues continued to bedevil the automaker.
It said it sold 158,327 vehicles, down from just under 176,000 a year earlier.
Other carmakers’ sales, including those of Toyota, Kia and Mazda, rose in October, while Honda’s fell.
Industrywide new-vehicle sales indicate volumes will exceed Cox Automotive's forecast. "Overall, it now appears the new-vehicle sales pace in October was the strongest since January," Cox said in a news release.
But Ford has struggled with supply availability issues, sitting on tens of thousands of vehicles while awaiting parts to finish them. The shortages and increased supply costs jacked up its third-quarter expenses by about $1 billion.
Meanwhile, interest rate hikes are likely to put a dent in future sales, as the average percentage rate for new-car loans rose to a several-year high in October to 6.3%.
“New vehicle inventory might finally be improving, but the automotive industry is still on a long road to recovery because rising interest rates are creating a major barrier to entry for car shoppers," analyst Jessica Caldwell of market researcher Edmunds said in a statement. "Many consumers who have been sitting out of the market due to high prices and limited options will likely continue to do so over high interest rates."
READ MORE: Car Sales Up at Multiple Brands as Honda Continues Skid
Originally posted on Auto Dealer Today
See all comments