Ford, Honda and Subaru sales drop in February

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Ford Motor Co. fell 21% in February as limited inventory and supply chain issues continued to hamper the company’s efforts and those of its competitors to deliver vehicles to customers.

Ford’s February sales were down, including its electrified vehicles.

Ford also reported that its electrified vehicle sales fell 3%, but the company said its electrified vehicle take-up rates jumped to 54%, 13 percentage points higher than a year ago.

“In addition to our February sales, our retail order bank continues to grow to reach 72,000 vehicles in February, four times more than last year,” said Andrew Frick, vice president of sales for the United States. United and Canada.

“Our newest products are turning into dealer lots at record rates. Over 33% of our retail sales come from previously placed orders and leave dealers directly upon arrival. Our new products are winning over competitors at a rate 26 percentage points faster than Ford as a whole, including Maverick, Mustang Mach-E, Bronco and Bronco Sport.

Lack of inventory is hampering automakers

While demand for new vehicles remains strong, total sales, with few exceptions, reflect supply chain challenges including semiconductor shortages, winter storms and a blockade by demonstrators two key bridges between the United States and Canada.

Honda Acura lineup in Ohio
Honda sales have been hampered by low inventories, in part due to the recent Canada-US blockade.

American Honda noted that demand from its customers remained strong – almost 60% of vehicles for dealerships are pre-sold – multiple supply problems and winter storm Landon have disrupted the company’s progress in the improvement in inventory.

Subaru of America Inc. also attributed lower sales to supply chain issues. It reported 44,866 vehicles sold in February 2022, down 7.1% from February 2021. Semiconductor shortages and supply chain issues continue to impact manufacturers automotive industry, including Subaru.

Toyota also reported a double-digit drop in sales for February. But Hyundai, Kia and Mazda, which posted an 8% increase in sales during the month of February. All three brands also offer some of the most affordable vehicles currently on the market, suggesting that some price resistance is building among consumers.

Cox Automotive observed that the year is off to a slow start, with tight inventories holding back the market.

“The omicron wave of COVID has receded and economic activity is picking up accordingly, but retail vehicle sales have been disappointing. In fact, the month started better than it ended,” noted Jonathan Smoke, Economist in chief of Cox.

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