Ford Motor Co. (F) - Get Ford Motor Company Report posted record sales of electrified vehicles over the first half of the year, offsetting a 27% slump in total June sales that were hit by chip shortages and plant closures.
Ford said total vehicle sales fell 26.9% from last year to 115,789 over the month of June, with car sales down a staggering 81.8% to just 2,868 units. Trucks sales were also lower, down 27% to 63,129, as Ford shuttered plants around the region amid a global semiconductor shortage, although the carmaker said month that second-quarter earnings will "surpass expectations and be significantly better than a year ago", thanks in part to lower-than-expected costs and "favorable market factors".
EV sales, Ford said, are up 117% from last year over the first six months of 2020 as Ford moves to invest another $30 billion over the next five years and plans to have 40% of its fleet electrified within the next decade.
“Through June of this year, Ford retail sales were up 10.7%," said Andrew Frick, Ford's vice president for U.S. and Canada sales. "With constrained inventories and record turn rates in the second quarter, we have been working closely with our dealers gathering retail orders, which are up 16-fold over last year."
"Reservations for F-150 Lightning have now surpassed 100,000 since the truck was first shown in May, while Ford’s sales of electrified vehicles produced a new all-time first half sales record with 56,570 vehicle sold – up 117 percent over year ago,” he added.
Ford shares were marked 0.2% lower in early trading Friday to change hands at $14.88 each, a move that would still leave the stock with a year-to-date gain to around 70%.
Ford will publish its second-quarter earnings on July 28.
Earlier this week, Ford's larger rival, General Motors GM, reported a 40% increase in second quarter sales and said it expects demand to remain high well into the second half of next year.
GM said it shifted 688,236 cars over the three months ending in June, even amid what it described as 'tight' fleet inventories. GM said last month that it expects its first half earnings to be "significantly better" than previous forecasts as semiconductor shipments improve and plants around the country return to full capacity.