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Automotive

Ford ramps up F-Series pickup production despite 10.3% drop in August sales

The automaker increased F-150 output to a two-year high following aluminum supply disruptions, even as U.S. sales posted an eighth consecutive monthly decline.

The short version

  • Ford Motor reported that total U.S. new vehicle sales fell 10.3% year-over-year in August, marking eight straight months of declines.
  • F-150 truck production reached 57,504 units in August—its highest monthly output in two years—following recovery from supplier factory fires.
  • Dealership inventory for pickups sits at about 40 days of supply, below Ford's target of 50 to 60 days.
  • Ford expects dealer lots to receive increased truck shipments over the next 30 to 90 days.

Key facts

  • Ford's total U.S. new vehicle sales dropped 10.3% year-over-year in August, marking the eighth consecutive month of annual sales declines.[CNBC]
  • F-Series pickup sales fell 10.9% through August compared to the prior year, including a 1.2% decline during the month of August.[CNBC]
  • August F-150 production rose to 57,504 units, the highest single-month total in two years.[CNBC]
  • Ford dealerships hold approximately a 40-day supply of pickup trucks, below the company's target range of 50 to 60 days.[CNBC]
  • Output had previously been disrupted by fires at a New York plant operated by aluminum supplier Novelis, which is projected to cost Ford $1.5 billion this year.[CNBC]
  • Ford attributed broader sales declines to discontinued vehicle models, intentional reductions in sales to daily rental fleets, and the calendar shift of the Labor Day holiday into September.[CNBC]

What remains uncertain

  • The timeline for dealership inventories to return to the target range of 50 to 60 days remains dependent on upcoming deliveries over the next 30 to 90 days.[CNBC]
  • The final financial impact of the Novelis supplier fires remains an estimate projected at $1.5 billion for the full year.[CNBC]

Sources