Ford Sales Drop 10.3% in Q2 in the US Amid Aluminum Supply Issues

Ford Motor Company reported a 10.3% decline in new vehicle sales in the United States during the second quarter, impacted by supply chain issues with a key supplier for its F-Series trucks and a notable drop in all-electric vehicle sales. Total Ford sales reached 549,200 vehicles in Q2, down from 612,095 in the same period last year, marking one of the largest expected declines in the automotive industry.

F-Series Trucks and Aluminum Shortage

Sales of the F-Series trucks, including the Ford F-150, fell by 11% in the second quarter. The primary cause was a shortage of aluminum supply after two fires at the facilities of Ford's main supplier late last year. In a statement, Ford said: "Despite continued strong customer demand, F-Series sales in the first half reflect the rescheduling of commercial production following the aluminum supply shortage we experienced last year. Ford expects supply to fully recover in the second half of the year." The company has already begun gradually ramping up production after the supplier resumed operations.

Electric Vehicle Sales Decline

In the electric vehicle segment, Ford's all-electric sales dropped by 40.7% in Q2 compared to the same period last year. This sharp decline highlights the challenges Ford faces in the competitive EV market, including pressure from rivals like Tesla and Chinese brands. Despite the downturn, Ford remains committed to its electrification plans, though it continues to grapple with supply chain hurdles and softening demand in certain segments.

Performance Slightly Above Expectations

Although the 10.3% sales drop is among the steepest in the industry, the results slightly exceeded Cox Automotive's forecast of an 11.5% decline. This suggests that Ford's production management and supply chain strategies have helped mitigate the impact of the crisis. With aluminum supply expected to fully recover in the second half of the year, Ford aims to regain sales momentum, particularly for its highly profitable trucks. Analysts are now watching the company's Q3 performance closely, anticipating improved production figures and market stabilization.