Ford: Record F-150 Truck Sales Bode Well For 4Q 2003

CHICAGO October 1, 2003; Ann Keeton writing for Dow Jones reporteds that-Ford Motor Co.'s surprisingly strong September truck sales got a "shot in the arm" from its new 2004 model F-150 truck, executives said on a conference call Wednesday. The truck was introduced over Labor Day weekend, but won't see its full sales impact until later in the fourth quarter, they said.

Strong customer interest in the F-150 at Ford dealerships resulted in overall truck sales that were 14% ahead of last year, and SUV sales also contributed to the gain. Passenger-car sales dropped 11% in the month, for an overall 5% increase in September vehicle sales, compared with a year ago.

Analysts had expected the automaker to post a year-over-year drop in sales.

Ford sales weren't adjusted for an additional selling day this year, unlike the sales figures of rivals General Motors Corp. and Chrysler Group, a unit of DaimlerChrysler A.G.

Ford said 25% of truck September sales were new 2004 models, sold with almost no incentives. The majority of sales came from 2003 models, carrying buyer incentives to help clear out showrooms.

For the company as a whole, 15% of inventory was in 2004 models at the beginning of September.

Now, the mix of 2003 and 2004 models is "roughly equal," said George Pipas, Ford's sales analysis manager. "Later today, you will see an announcement on incentives on 2004 models," he said.

Ford in September began the early launches of two new minivans, the Freestar and the Mercury Monterey, which have gone "better than expected," Pipas said.

The company made a good showing with U.S. market share in September. "It should come in at about 22%," Pipas said. Ford's market share slipped earlier this year, but now is almost at last year's September level of 22.5%.

The strength of the Ford F-150 drove sales on the F-series of trucks to a 31% increase for the month. Ford said it expects to spend less on incentives for the popular F-150 truck than on other vehicles, even though it's more expensive than the F-150 model it replaces.

Revenue was strong in the month, as customers continue to buy "at the high end," trading up to more expensive models with many add-on features, Pipas said.

Inventory levels dropped in September, from 741,000 at the end of August to 737,000 at the end of September. "The inventory level now is about equal to last year," Pipas said.

Ford economists still see the U.S. economy gaining strength, although the loss of jobs remains a concern.