Ford offered employee pricing to everyone and sales still fell
Ford and Lincoln sales fell sharply despite the return of employee pricing for all buyers. Fully-electric vehicle sales dropped by 43.9%, hybrid sales by 15.7%, and internal combustion sales by 12.3%, resulting in a combined sales drop of 13.6% year-over-year to 190,828 vehicles. The overall sales decline suggests that even generous incentives may not be enough to offset weakening demand in several key segments and growing competitive pressure.
Employee Pricing Falls Flat
Ford's employee pricing campaign lasts from May 1 to July 6, and covers several popular models. Other recent incentives offered include tempting lease deals on the Explorer and Mustang Mach-E that will last until July. The only models that saw positive growth were the Bronco (5.2%), Explorer (8.8%), Maverick (10%), and the Transit (4.2%). Every single Lincoln model saw a sales decline.
The entire Ford brand's sales still fell 13.3% in May. Some of the decline can be attributed to the phase-out of the Escape, whose sales dropped by a staggering 80.3%. However, weakness extended beyond discontinued models. F-Series sales declined by 13.3%, the Ranger posted a 23.3% drop, and Mach-E deliveries fell 44%, as EV sales across the US plateaued.
Hybrid Rivals Pull Ahead
Ford's negative performance stands out even more when compared to several competitors. Subaru reported a 10.4% sales increase in May, while Hyundai and Honda saw hybrid sales grow significantly, outpacing electric vehicles. Kia also celebrated its best May ever for the redesigned Telluride.
Those results may highlight changing consumer preferences. As rising fuel prices remain a concern for many households, demand for fuel-efficient SUVs and crossovers appears to remain strong. Following the departure of the Escape Hybrid, Ford no longer offers a mainstream hybrid crossover, despite hybrids being the quickest-selling car type at the moment. While Ford has no car in this segment, several rivals continue expanding their hybrid crossover and SUV lineups.
Challenges Continue To Mount
The sales slump also arrives during a busy period for Ford. Recent recalls involve certain Bronco, Explorer, and Ranger models equipped with the 2.3-liter EcoBoost engine due to a defect that can cause loss of power or engine failure. Certain Bronco Sport and Maverick models may have a suspension issue, while nearly 420,000 Expedition and Lincoln Navigator SUVs were recalled due to a front seat belt concern. While recalls do not necessarily translate directly into lower sales, they add to a growing list of challenges facing the automaker.
That said, not everything in Ford's pipeline is negative. Reports suggest the company is exploring a potential V8-powered four-door Mustang sedan, codenamed "Mach 4," which may revive enthusiasts' interest. However, with Lincoln sales falling more than 20% and Ford's incentives failing to prevent a double-digit decline, the company's immediate challenge remains clear: convincing buyers to return to showrooms despite growing competition and an increasingly difficult market.
