Ford Motor Company (NYSE:F) Sales Plummet Despite Industry Sales Increase

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Ford (NYSE:F) has reported a nearly 2.7% decrease in its sales as compared to last year, which in itself is not too devastating a news in an industry where the big players are bailed out from taxpayers money. However if you are paying taxes then it is time to do some research and plan for the future.  Management should figure out a marketing plan to stop declining sales.

Nissan reported an 18.5% increase and the American Honda increased around 12% with the biggest contribution coming from its premium brand increasing around 18.8%. Chrysler reported that their sales average has increased by 19% with General Motors (NYSE:GM) reporting a similar increase, however some people might argue that GM had the liberty to tweak that number by making their Cadillac a separate unit, hence the sales decrease from last year would not be an aggregate of the 19.4% reported by the company.

The industry has seen the biggest ever increase since 2006! But why is it that consumers absolutely refuse to purchase Ford (NYSE:F) which has been a hot favorite for decades? The reason is its three top selling brands going out of fashion and showing a decrease. Fiesta decreased by 17% with Focus and escape in close competition with an 8% and a 3.9% decrease respectively. But it was not all gloom and doom as the miniscule figure of an overall 2.7% decrease shows.

The latest Lincoln was responsible for an overall 12% gain for Ford (NYSE:F) and the Fuzon reported an increase of 9% in sales. When the VP for Sales and Marketing was asked for comment he said that the marketing activities for the newest addition to the Lincoln line didn’t go to waste as the results produced were the best in the last seven years. Fuzon has had record sales for five straight months and one-fifth of the growth is coming from the state of California.

A stable economy in September was mainly the reason why the car industry could show such a growth in its sales. Not just that but gas prices fell, interest rates were low, loans were easy to get. The industry overall utilized financial tools like leasing cars in driving sales as well. Customers have come out in hoards to get low financing car leases and if the interest rates are not changed by the Fed, which was confirmed last month, things point to a continued trend in new car sales.

No way should one think that auto makers are selling them cheap. The average price for a car has increased by $450 when we compare last month. Industry analysts predict that even with such a high retail price, the auto industry will continue to grow around 10% when compared to last year. Ford (NYSE:F) should learn from this and quickly introduce its new pickup version as it is cutting back on its F-150 production which majorly cut down its fleet sales, hence the bad numbers.

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