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Ford Motor Co. F recorded a 2.6% year-over-year rise in sales to 130,200 vehicles in its 20 traditional European markets (Euro 20) in Jun 2016. The automaker, however, lagged the industry’s sales growth rate of 6.7%. In the first half of 2016, Ford’s sales increased 7.4% to 718,300 vehicles, compared with the industry’s growth rate of 9.3%.
Considering all the 50 European markets, Ford’s sales rose 3.7% to 148,400 units in the month.With this, the automaker’s monthly sales lagged the industry sales growth of 4.7%. In the first six months of 2016, the company’s sales went up 7.1% to 807,200 vehicles, compared with the industry’s growth rate of 6.7%.
Ford’s Euro 20 market share dipped 0.3 percentage points to 7.7% in June and 0.2 percentage points to 7.9% in the first six months of 2016. The automaker’s sales in the higher value retail and fleet segments accounted for 74% of total passenger car sales in the first half of 2016, up 3 percentage points year over year, and 5 percentage points higher than the industry average.
Ford’s commercial vehicle sales went up 18% to 29,900 units in June. Further, the market share of its commercial vehicles improved 0.8 percentage points to 12.5%. In the first half of 2016, Ford’s commercial vehicle sales increased 17% to 162,500 units. This sales performance helped Ford to become the highest-selling commercial vehicle brand in Europe in the first six months of the year.
Ford plans to launch seven all-new or revamped vehicles in Europe this year, including the recently launched Transit Custom and Transit 2-tonne. This should drive sales in the future. Vehicles to be launched include the Fiesta ST200, S-MAX Vignale, Edge Vignale and Kuga Vignale.
Ford expects SUV sales in Europe to surge 30% in 2016. In fact, it anticipates sales of SUVs to be more than 200,000 units for the first time.
The company also expects record sales of performance cars in Europe this year. Sales are expected to improve 50% over 2015 to around 40,000 cars.
Ford currently carries a Zacks Rank #4 (Sell). Some better-ranked automobile stocks include Tower International, Inc. TOWR, Spartan Motors Inc. SPAR and U.S. Auto Parts Network, Inc. PRTS, all carrying a Zacks Rank #2 (Buy).
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FORD MOTOR CO (F): Free Stock Analysis Report
US AUTO PARTS (PRTS): Free Stock Analysis Report
TOWER INTL INC (TOWR): Free Stock Analysis Report
SPARTAN MOTORS (SPAR): Free Stock Analysis Report
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