Ford Targeting Massive $25.5 Billion Cuts, Confirming End Of Major Automotive Cycle

Ford Targeting Massive $25.5 Billion Cuts, Confirming End Of Major Automotive Cycle:

The rising cost of commodities, combined with the end of a bubble in the automobile sector, are taking tolls on automobile companies and forcing drastic restructurings at major US automakers like Ford.

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US Auto Sales Fall for 2nd Year at GM, Ford, FCA, Toyota, BMW, Mazda. Total 2017 Sales Drop Below 2015

US Auto Sales Fall for 2nd Year at GM, Ford, FCA, Toyota, BMW, Mazda. Total 2017 Sales Drop Below 2015:

Tesla gets crushed by the big boys.

Total new-vehicle sales in the US fell 5.2% year-over-year in December to 1.6 million units. For all of 2017, sales declined by 320,000 vehicles, or 1.8%, to 17.23 million units. It was the first overall decline since the Financial Crisis.

Compared to 2015, sales fell by 249,033 vehicles, or 1.4%. These sales are vehicles delivered by dealers to their customers, or delivered by automakers directly to large fleet customers, as reported by Autodata.

For the big three US automakers and some import brands it was the second year in a row of sales declines (two-year percent change from 2015):

  • GM -2.7%
  • Ford -1.1%
  • Fiat Chrysler (FCA) -8.6%
  • Toyota -2.6%
  • BMW -12.6%
  • Mazda -9.3%

The table below shows new-vehicle sales by automaker, sorted by total sales in 2017 (gray column). Automakers with declining sales in 2017 are marked in red. The green column shows the two-year percentage change from 2015:

Read moreUS Auto Sales Fall for 2nd Year at GM, Ford, FCA, Toyota, BMW, Mazda. Total 2017 Sales Drop Below 2015

Soaring Lease Returns Set To Wreak Havoc Used Car Pricing and Auto Industry Profits

Soaring Lease Returns Set To Wreak Havoc Used Car Pricing and Auto Industry Profits:

Falling used car prices have already started to take their toll with Ford shaving $300 million from its financial-services arm’s profit forecast for this year but is Ford just the “canary in the coal mine?”

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Trump Takes Victory Lap After Ford Cancels $1.6 Billion Mexican Expansion Plan As “Vote Of Confidence” In President-Elect

Trump Takes Victory Lap After Ford Cancels $1.6 Billion Mexican Expansion Plan As “Vote Of Confidence” In President-Elect:

Update: sure enough, here comes Trump’s twitter victory lap:

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Trump’s recent “strong hints” to US-based automakers to keep production within the US are starting be heard loud and clear, and nowhere more so than at Ford, which just hours after observing the beat down Trump gave to competitor GM on Twitter, announced that it is scrapping plans for a new $1.6 billion plant in San Luis Potosi, Mexico after itself coming under criticism by Donald Trump for shifting small-car production south of the border, and announced it would instead invest $700m in a plant expansion in Flat Rock, Michigan.

Read moreTrump Takes Victory Lap After Ford Cancels $1.6 Billion Mexican Expansion Plan As “Vote Of Confidence” In President-Elect

Ford To Idle Four Factories Due To Slowing Car Demand, Rising Inventories

Ford To Idle Four Factories Due To Slowing Car Demand, Rising Inventories:

As a result of slowing demand and declining US auto sales coupled with growing inventory, Ford Motor is halting one of two plants that builds its top-selling F-150 pickup as it idles four factories this month amid slowing U.S. auto sales.

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