Ford Auto Sales: A Turn For The Best

So good news for Ford…they are reporting an increase in sales of light vehicles, its first monthly gain in 20 months, for the month of July.

What once was looking like a vertical climb with little more than some chalk for your hands now seems to be an indication that progress can be made in the American auto-industry.  Because for the first time in almost 2 years, Ford has been able to sale more vehicles than they did at this time last year.  Any gains in sales compared to previous numbers by the Big 3 Automakers in America should be looked at as a step in the right direction for these reasons:

1) It means Americans are spending.  Rather than losing confidence in the economy, and prompting saving and “belt tightening”, Americans in July seemed a little more willing to make investments on Ford cars – at least enough to reverse a 20-month streak of underperforming in sales compared to previous years.  In order to stabilize the economy, confidence goes a long way.  So we will take this 2.4% increase.

2) Big is not the “new sexy”.  Big vehicles I mean.  Big vehicles were the staple of the Ford brand and other American automakers – SUVs, trucks, etc. – it was great to spend on these vehicles, worrying less about the low efficiency ratings of these.  This increase may indicate that light vehicles, which are generally more fuel efficient, is becoming the new trend and may signal a change in consumer’s preferences.  This change is good because buying more fuel efficient cars across America may mean less fuel consumption as a country.  So the more people that fall in love with fuel efficient car, the more money they save on gas costs, and the larger stranglehold the oil czars of the Middle East have on the U.S. and global economy will loosen.

3) Reinventing self. The Big 3 Automakers had a tough task of looking for ways to reinvent itself in the midst of bailouts and an ailing economy.  This slight increase may at least be an indication that whatever Ford has done, it has paid off in the eyes of consumers.  Reinventing themselves is critical if they want to be competitive – my next point.

4) A sales increase means that they are becoming more competitive against other car manufacturers and models.  This was one of the root causes of the American auto industry’s woes.  These companies were losing their standings as companies that were innovators, producers of cars that were always a step up from their predecessors.  Rather than setting the curve, they fell behind it.  Hopefully, this sales increase can be an indication that the Big 3 can get back to the forefront  with a combination of innovation, strategic advertising, and a recognition of what vehicle models are in demand.

And as my post the other day mentioned about this Cash for Clunkers program, there is no better time than right now to get those sales, for an even better posting for the month of July

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