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Automobile industry

Ford Motor Company Reports 2.1 Percent Gain in Light-Vehicle Sales for August

Strategic Insights

— 2 min read

The Ford Motor Company achieved a 2.1 percent gain in light-vehicle sales for August, contributing to the industry's highest seasonally adjusted sales rate for the year. Ford's sales of compact Contour and Mystique cars and clearance incentives on its 1995 Taurus and Sable models drove the company's growth. Overall car sales at Ford increased 2.7 percent to 143,869 units, while light-truck sales reached 168,918, a 1.7 percent increase from August 1994. The combined results of Ford, General Motors, and Chrysler lifted total domestic sales in August to 1,336,215 light vehicles, a 2.7 percent rise above the 1,300,938 million sold in August 1994.

Key Takeaways:

  • Ford's light-vehicle sales for August totaled 317,621 units, with a 2.1 percent gain compared to the same month in 1994.
  • The compact Contour and Mystique cars, as well as clearance incentives on the 1995 Taurus and Sable models, were major drivers of Ford's sales growth.
  • Overall car sales at Ford grew 2.7 percent to 143,869 units in August.
  • Ford's full-sized pickup trucks and Explorer sport-utility vehicles maintained their sales pace, contributing to the 1.7 percent increase in total light-truck sales to 168,918.
  • The seasonally adjusted sales rate for August reached 15.7 million units, a 0.4 million-unit increase from the 15.3 million-unit rate in August 1994.
  • Ford officials expect American industry sales to pick up through the rest of 1995, after a sluggish performance in the first half of the year.
  • Varsity Ford in Ann Arbor reported selling 25 of the 1996 Tauruses since deliveries began, with a current inventory of about 130 of the redesigned cars.
  • Analyst Michael Ward predicts light-vehicle demand will remain relatively stable for the next couple of years, with the annual sales rate potentially staying between 14.6 million and 15.1 million units through mid-1996.

Statistics:

  • Ford's August light-vehicle sales: 317,621 units
  • Seasonally adjusted sales rate for August 1994: 15.3 million units
  • Seasonally adjusted sales rate for August 1995: 15.7 million units
  • Total domestic sales in August 1994: 1,300,938 million units
  • Total domestic sales in August 1995: 1,336,215 million units
  • 12-month annual sales rate: between 14.6 million and 15.1 million units for 17 consecutive months

Sources:

  • "Ford Motor Company Reports 2.1 Percent Gain in Light-Vehicle Sales for August" (Source: [The New York Times, September 1995])
  • Company reports (Source: Ford Motor Company, General Motors Corporation, Chrysler Corporation)
  • Statement by Robert Rewey, Ford's group vice president of marketing and sales (Source: Ford Motor Company)
  • Statement by Michael Ward, Paine Webber analyst (Source: Paine Webber)
  • Chart: "U.S. Vehicle Sales In August" (Source: [The New York Times, September 1995])

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