Ford Motor: shrinking to fatter profit

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Ford posts double-digit percentage sales drop in July

Ford Motor Co. reported a more than 10% decrease in U.S. sales year-over-year for July from the impacts of the Escape crossover's cancellation and continued weakness in F-Series inventory due to an aluminum shortage.

But the Dearborn automaker's U.S. sales director said the "decline is by design." Although the absence of the compact SUV from its lineup will continue, aluminum supplier Novelis Inc. in June restarted production at its hot mill that had been taken out of commission by multiple fires last fall. Plus, executives said last week during earnings they aren't seeing weaknesses in demand for high-margin trucks, SUVs and off-road trims.

"Our July results," said Rob Kaffl, Ford's head of U.S. sales, "reflect a strategy that is working exactly as planned: we've intentionally been sunsetting select models and pulled back on low-margin rental fleet volume to make room for an onslaught of new-product introductions by the end of the decade."

"We are trading a small amount of near-term volume today," Kaffl said, "for what comes next: an onslaught of new products that will be available for customers starting next year and through the end of the decade — across the entire powertrain lineup, from gas to hybrid to EV."

msn.com - Ford posts double digit percentage sales drop in july

That is one of the bigger pantloads I have heard in a while.

Steve

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