Ford Shifts Into High Gear: Q4 Total US Sales Surge 9%
Friday, Jan 3, 2025 12:00 pm ET
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Ford Motor Company (F) has just announced a significant boost in its total U.S. sales for the fourth quarter of 2024, with a surge of 9% compared to the full-year sales gain of 4%. This impressive performance has helped Ford outpace the total industry and retail sales growth, expanding its market share. Let's dive into the key factors driving this success and explore what it means for investors.
One of the primary contributors to Ford's Q4 sales growth is its strategic focus on offering a variety of powertrain options, such as gas, diesel, hybrid, and electric models. This approach, known as the "Freedom of Choice" strategy, allows Ford to cater to a broader range of customer preferences and market demands. The F-Series, Ford's best-selling truck, exemplifies this strategy. In 2024, all F-Series powertrain options saw year-over-year sales growth in the final month, with total Q4 sales up 21%. This strong performance helped drive the company's overall Q4 retail sales growth of 17% and contributed to the F-Series' 48th consecutive year as America's best-selling truck.
Ford's electrified vehicles also played a significant role in driving overall Q4 sales. With 285,291 electrified vehicles sold (HEV, PHEV, and electric) in 2024, sales were up 38% compared to the previous year. This growth outpaced the sales of GM and Stellantis, making Ford the leading U.S. electric vehicle brand. The Mustang Mach-E and F-150 Lightning models were key contributors to this growth, with the Mustang Mach-E posting its best-ever quarterly sales result of 16,119 vehicles sold, making it America's best-selling electric SUV behind only Tesla's Model Y in 2024. The F-150 Lightning also contributed to the company's electric vehicle sales success, with 13,057 units sold in Q4 2024.
Ford's inventory management strategy, aimed at offsetting supply reductions during plant changeovers, also had a positive impact on its Q4 sales performance. The company bolstered its vehicle inventory to help offset the impact of expected supply reductions during key product launches, including the new Expedition, Navigator, and Bronco. This strategy reflects Ford's commitment to keeping its product lineup among the freshest in the industry for customers and dealers. As a result, Ford's total Q4 sales increased by 9% compared to a full-year sales gain of 4%, with a total of 2,078,832 vehicles sold.
In conclusion, Ford's strategic focus on offering multiple powertrain options, strong electrified vehicle sales, and effective inventory management have all contributed to its impressive Q4 sales growth. As an investor, this performance demonstrates Ford's ability to adapt to changing market demands and maintain a competitive edge in the automotive industry. With a forward P/E of 5.5 and a 6.06% yield, Ford presents an attractive opportunity for investors seeking a blend of value, income, and growth potential.