Ford's sales down in October on impact of UAW strike

Ford Motor Co.'s sales fell 5.3% in October, the first month that reflected the impact of the United Auto Workers' strike of the Detroit automakers that halted production at numerous assembly plants.

Ford on Thursday reported selling 149,938 vehicles last month, down from 158,327 in October 2022.

Sales of electric vehicles were up 9.1%, sales of hybrid vehicles reached a new monthly record with a 37.9% gain, and sales of internal combustion engine vehicles — which make up the bulk of Ford's volume — were down 8.8%. The company has increasingly focused on growing sales of hybrid vehicles that are proving to be popular with customers.

SUV sales were essentially flat in October compared to a year ago, while truck sales dropped 10.5%. Car sales were up 10.7%.

Numerous nameplates under the Ford brand were down in October, including the Bronco SUV, the electric Mustang Mach-E crossover, the Expedition SUV, F-Series trucks, Ranger pickups, Transit and Transit Connect cargo vans, and heavy trucks. Sales were up across Bronco Sport, Escape, Edge, Explorer, Maverick and E-Series. Sales of the electric F-150 Lightning rose more than 50%.

Mustang posted an 11% sales gain for the month. Sales of Ford's luxury Lincoln brand fell 4.5%.

At the start of the week, Ford began calling back to work thousands of UAW-represented workers who had either been on strike or were laid off as a result of the strike. Ford and the UAW reached a tentative agreement on a new four-and-a-half year contract last week; the strike ended Monday after 46 days when the union settled with General Motors Co. The pacts must still be ratified by workers.

Ford is ramping production back up at the three assembly plants the UAW struck: Michigan Assembly Plant in Wayne, which assembles the Ranger and Bronco; Chicago Assembly Plant, which builds the Ford Explorer and Lincoln Aviator; and Kentucky Truck Plant, which builds Super Duty trucks, the Lincoln Navigator and the Ford Expedition. The strike also disrupted production at numerous other Ford plants, resulting in thousands of temporary layoffs.

Ford reported last week that the strike resulted in a $1.3 billion earnings hit.

Crosstown rivals GM and Stellantis NV report sales on a quarterly basis. But of the automakers who report U.S. sales on a monthly basis, several reported gains in October, including American Honda Motor Co., Toyota Motor North America and Hyundai Motor Co.

Industry forecasters had been expecting sales to increase from year-ago levels in October. Cox Automotive had forecasted a 4% sales gain and for the month's seasonally adjusted annual rate to finish near 15.8 million units.

“Though there are many headwinds in the market today, new-vehicle sales continue to show gains over last year’s supply-constrained market," Charlie Chesbrough, Cox's senior economist, said in a statement ahead of the sales reports. "Concerns about high interest rates, a potential economic recession, and the ongoing UAW strike are all likely holding back some potential vehicle buyers. However, there are still enough individuals and businesses with the need and ability to buy vehicles, which has helped sustain the sales recovery.”

jgrzelewski@detroitnews.com