Never Bailed Out Ford Motors Outsold Obama Motors in June Sales

Submitted by SadInAmerica on Tue, 07/28/2009 - 3:50pm.

In the wake of the federal government bailout and takeover of General Motors Corp, Ford Motor Company outsold GM in North America in June, edging out the GM core brands in the U.S. and topping Canadian sales for the first time in 50 years.

Ford, the only one of the Big Three U.S. automakers that did not accept a government bailout, sold 148,153 Ford, Lincoln, and Mercury units in June. GM's core brands, Chevrolet, Buick, GMC, and Cadillac, sold 143,454--about five thousand units behind Ford's sales.

The Canadian market saw more dramatic success for Ford, where sales bounced up 25 percent from last June to 27,408 cars and trucks, beating GM's 22,334.
Ford Sales Analyst George Pipas touted the fact that Ford outpaced the rest of the US auto industry, which declined by an average of 27 when June 2008 is compared to June 2009.  Ford's sales dipped only 11% from June 2008 to June 2009.
"Once again our market share is higher than it was a year ago and we've seen that consistently over the last nine months," he said.
"And one of the encouraging signs that we've seen in recent quarters is a consistent (improvement) in the way people view us," Pipas added.
Jim Farley, the group vice president from Marketing & Communications at Ford, said in a statement, "Customers are showing us just how much they value the quality, fuel efficiency, safety, and smart technology incorporated in our new product lineup."
Ford also notes it has been able to "de-escalate incentive spending" at a time when competitors are deeply discounting their vehicles to clear surplus inventory, which means more revenue per sale.  
Jeremy Anwyl, CEO of, a site that provides vehicle reviews and consumer advice, says Ford is benefiting from having avoided government intervention.
"Ford has done a very good job of, at least in the public's perception, positioning themselves as a financially healthy company," he told
"They deserve credit for generating cash, generating liquidity a couple of years ago, back when the markets were still supporting that sort of activity," he said. 
Tom Wilkinson of GM's news relations department said June was not a normal month to judge by.
"Almost all of our production was shut down for inventory control," he told "So I think before declaring victory, we probably need a couple more months under our belt to see where it shakes out."
"One month does not a race make," he added.
Despite increasing its market share and improving the perception of the company, Anwyl said Ford cannot expect long-term success based on the June figures. "They're going to be saddled with a very high level of debt going forward," he said, "GM is going to have a lot less and it's going to be interesting to see how that plays out."
Anwyl says Ford could easily find itself losing market share again because consumers have become fickle.

"It's certainly not like it was in the old days where you were a loyal Ford lifer or a Chevy person or a Dodge man," he said.

"Consumers just don't do that and many of them are very focused based on what the economics are at the moment--(who has) the acceptable car with the best deal on it at that moment in time."
Additionally, he says vehicle quality has become more standardized in the past two decades, making it more difficult for a company like Ford to retain customers. "If you went back into the 80's and even the 90's, there was a wide range in terms of vehicle quality (and) vehicle performance. Today that's not really the case.
"What that means is that the switching costs, or the risks associated with switching from one brand to the other are pretty low from a consumer perspective," Anwyl said.
"If they think, the next time around, that it's Toyota that's got the best deal, you know, then that might be where they go."
Toyota, which includes the luxury Lexus brand and the younger-skewing Scion, saw sales skid 35 percent in June.
All three major U.S. automakers hope to see modest sales improvements for the balance of the year thanks to the government program Car Allowance Rebate System (CARS), or "Cash for Clunkers." The program began July 1 and provides a rebate for those who trade in cars with poor fuel efficiency for updated models.

Christopher Neefus - July 9, 2009 - source CNSNews

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Submitted by SadInAmerica on Tue, 07/28/2009 - 3:50pm.