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Ford’s US sales decline narrows in May amid tight supplies

The Mustang Mach-E is Ford’s first new all-electric automobile underneath an $11 billion funding plan in electrified autos by 2022.

Michael Wayland / CNBC

Ford Motor stated Thursday that its U.S. sales fell simply 4.5% in May from a year in the past, a narrower decline than in latest months, because it continued to see white-hot demand for its newest autos amid tight supplies of latest automobiles, vehicles and SUVs.

Ford and different automakers are persevering with to combat by supply-chain points, together with a world scarcity of semiconductor chips, that has hampered new automobile manufacturing world wide for over a year. Ford’s month-to-month U.S. sales had been down by over 10% in April and by greater than 20% in February and March.

A Ford spokesperson stated the company estimates that general U.S. new automobile sales had been down about 30% from a year in the past in May, that means that Ford seemingly gained market share.

Ongoing disruptions to Ford’s manufacturing have led to tight inventories at its sellers. In response, Ford has supplied incentives to clients who’re prepared to position orders for his or her autos and await them to be constructed and delivered. Almost half of Ford’s retail sales in May got here from buyer orders positioned earlier in the year, the company stated in a press release.

With chip supplies nonetheless restricted, Ford has been prioritizing manufacturing of its latest fashions, together with the electrical Mustang Mach-E crossover, the Bronco SUV, and the small Maverick pickup, in addition to its extremely worthwhile mainstays, such because the F-Series pickups and the big Ford and Lincoln SUVs.

Sales of Ford’s F-Series pickups, an necessary driver of the company’s earnings, had been up 6.9% in May from a year in the past. Deliveries of the Mustang Mach-E had been greater than double the mannequin’s year-ago whole.

From January by May, Ford has offered 763,558 autos in the U.S., down 13.3% from the identical interval in 2021.

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