Ford Motor Company (F) Gains More Ground on Import Rivals

That’s a good result – but sales of General Motors Company (NYSE:GM)‘ Chevy Silverado and GMC Sierra were together up 44% for the month. Put another way, General Motors Company (NYSE:GM), which is selling a mix of 2013 and all-new 2014 models at the moment, gained market share on Ford in this critical segment.

The F-150 lost ground to rival General Motors Company (NYSE:GM) trucks in July. Photo credit: Ford Motor Co.

Is that a concern? Not necessarily – GM’s all-new pickups have been moving very quickly, and sales of remaining inventories of the old models have remained brisk. But it’s something to watch: GM’s all-new pickups have been getting great reviews, while Ford’s F-Series is set to be replaced next year. If Ford has to boost incentives to keep sales of the current F-Series strong, that will dent the company’s profits.

The upshot: a good month, but concerns on the horizon
It’s worth noting that Ford’s sales to rental-car fleets – traditionally its least-profitable customers – were down sharply in July versus year-ago levels. It’s possible that Ford is diverting limited inventories of hot models like the Fusion and Escape to retail channels in an effort to maximize profits; if so, that’s a good move.

But it raises a concern: If more of Ford’s North American factories are at or near their peak output, how will Ford raise production to maintain its market position as the overall U.S. vehicle market continues to grow? Will it be able to juggle production to meet demand, or will more big investments in new production lines be needed? We’ll find out in coming months.

The article Ford Gains More Ground on Import Rivals originally appeared on Fool.com and is written by John Rosevear.

Fool contributor John Rosevear owns shares of Ford and General Motors. Follow him on Twitter at @jrosevear. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford.

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