Ford quarterly U.S. income fall 9.8% as truck sales dip

(Reuters) -Ford Motor Corp on Wednesday posted a 9.8% tumble in quarterly U.S. car revenue, as a fall in profits of its rewarding vehicles outweighed larger need for activity utility autos.

FILE Photo: The symbol of Ford is noticed on a 2020 Ford Explorer motor vehicle at Ford’s Chicago Assembly Plant in Chicago, Illinois, U.S. June 24, 2019. REUTERS/Kamil Krzaczynski

The No. 2 U.S. automaker marketed 542,749 motor vehicles in the fourth quarter, down from 601,862 a yr previously.

The automaker posted a 12.5% decline in truck sales, though passenger motor vehicle revenue fell 41.1% as it carries on to stage out standard sedan styles in North The us that have come to be significantly unpopular with consumers.

Sales of its SUVs, on the other hand, rose 4% to 216,732 models.

“Fourth quarter represented an inflection issue at Ford in our changeover from automobiles to a substantially better focus on iconic vans, SUVs and electric vehicles,” stated Andrew Frick, vice president at Ford’s gross sales in the United States and Canada.

“We are effectively positioned to see the advantages of our targeted attempts throughout 2021,” Frick added.

GM documented a 4.8% raise in U.S. income for the fourth quarter on Tuesday, even though Toyota Motor Corp and Volkswagen AG recorded a profits raise of 9.4% and 10.8%, respectively.

“It may well seem at odds with unemployment concentrations and the severe economic disorders … but the customers who are purchasing new automobiles through the pandemic are obviously on the other aspect of the financial divide,” sector marketing consultant Edmunds stated in a report on Tuesday.

Business experts assume a rebound in demand from customers this year, fueled by the rollout of COVID-19 vaccines, record low curiosity costs and wholesome consumer savings as individuals held off paying revenue on massive buys and vacations for the duration of the pandemic.

Even so, growing COVID-19 scenarios in the United States have enhanced the uncertainty about a fast rebound.

Reporting by Sanjana Shivdas in Bengaluru Editing by Anil D’Silva and Maju Samuel