Mexican Media Brands
Ford Margins to Shrink as Buyers Shift to Small Cars
Ford Motor Co. warns that its operating profit margin in North America, which hit 12% in this year's third quarter, will contract to 8%-10% by mid-decade.
#economics
Share
Ford Motor Co. warns that its operating profit margin in North America, which hit 12% in this year's third quarter, will contract to 8%-10% by mid-decade.
Mark Fields, president of Ford's Americas unit, tells an investor conference in New York City that its margin, or return on sales, is coming under pressure as customers downsize from big pickups and SUVs to small cars.
Rising incentives also are likely to cut into Ford's previously stable pricing, Fields says. He notes that the industry's U.S. car and light truck inventories ballooned to 3.1 million vehicles by Oct. 31, the highest level since December 2008.
New models have offset the downsizing trend this year, according to Fields, who will become chief operating officer on Dec. 1. He says the new generation of Escape compact crossover vehicles and Fusion midsize sedans commands transaction prices that are $4,200 and $3,700 higher, respectively, than their predecessors.
RELATED CONTENT
-
Achieving Efficiency?
A look at on-road fuel economy changes over 92 years.
-
on the Genesis GV60 interior, EV sales in H1, Bentley Bentayga's wood work, Faurecia's advanced manufacturing & more
The strange glowing orb in the Genesis GV60. . .global EV sales in the first half. . .creating wood for the Bentayga interior. . .the importance of material handling at Faurecia. . .lux ATPs. . .fast Porsche. . .fast Lambo. . .the Avalon Hybrid. . .Silverado steel. . .
-
On Global EV Sales, Lean and the Supply Chain & Dealing With Snow
The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future