Ford Analyst: Car Sales To Slowly Improve
DEARBORN (WWJ) - Ford's top analyst says car and truck sales seem to have bottomed out for the year, and should start rising slowly from here. Lower inventories and higher prices depressed sales in May to their lowest level of the year so far.
VIDEO: Ford's George Pipas talks about June car sales trends.
"It doesn't seem to be getting any worse, and may improve big in June," said Ford sales analysis manager George Pipas, in a morning briefing with reporters.
Ford's projections of total sales this year remain in the 13 to 13.5 million range.
Sales numbers for June will come out on Friday. They will be closely watched for signs of a rebound.
Ford sales, Pipas says, will be up from a year ago, and probably seen an improvement from May.
"Our market share will be similar to what it was in may, probably in the 17 per cent range. Our retail business will be up compared to a year ago," he said. "I expect both retail and fleet business to be up compared to a year ago."
Domestic carmaker sales have been steady so far this year. But, Japanese automakers will continue to have trouble in June, Pipas says, because of a perception by customers that they don't have the small cars they seek.
"There's ample evidence that Toyota and Honda customers, many of them, are deferring their purchases," said Pipas.
That will likely mean a slight cooling in small car sales. But, Pipas says that Ford is still seeing strong sales of its small Fiesta and Focus. He says the new Explorer will also see a year over year improvement, mostly because of its improved fuel economy.
Ford has "benefited somewhat" from buyers who couldn't find the vehicle they wanted at an import dealer, Pipas said.
"In the months of May and June, it has helped share," Pipas told reporters. But, he said for the most part import customers are waiting until the product they want is available.
Rapidly falling gasoline prices are also expected to help boost sales, Pipas says, because that puts more dollars into consumer's wallets.
