Ford Motor Co.F recorded an 11.5% year-over-year rise in sales to 111,700 vehicles in its 20 traditional European markets (Euro 20) in May 2016. With this, the automaker lagged the industry's sales growth rate of 15.1%. This is the company's best May sales since 2011. In the first five months of 2016, Ford's sales increased 8.6% to 588,500 vehicles, compared with the industry's growth rate of 9.9%.
Considering all the 50 European markets, Ford's sales rose 9.9% to 128,500 units in the month. With this, the automaker's monthly sales lagged the industry sales growth of 12.4%. In the first five months of 2016, Ford's sales increased 7.9% to 659,200 vehicles, compared with the industry's growth rate of 7.2%.
Ford's Euro 20 market share dipped 0.2 percentage points to 7.6% in May and 0.1 percentage point to 8% in the first five months of 2016. The automaker's sales in the higher value retail and fleet segments accounted for 73% of total passenger car sales in the month, up 1 percentage point year over year and 4.2 percentage points higher than the industry average.
Ford's commercial vehicle sales went up 26% to 25,800 units in May. This is the best May sales since 2007. Further, the market share of its commercial vehicles improved 1.3 percentage points to 12.8%. This sales performance helped Ford to become the highest-selling commercial vehicle brand in Europe in May as well as the first five 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 new Kuga SUV, Fiesta ST200, S-MAX Vignale, Edge Vignale, Kuga Vignale, and the KA+.
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 MOTOR CO Price
Ford currently carries a Zacks Rank #3 (Hold). Some better-ranked automobile stocks include Lear Corp. LEA , Oshkosh Corporation OSK and Superior Industries International, Inc. SUP . All these stocks sport a Zacks Rank #1 (Strong Buy).
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