Ford Achieves 16.3% Year-Over-Year Sales Growth in May
Ford announced a notable 16.3% increase in U.S. vehicle sales for May compared to the same month last year. This growth was driven primarily by the continuation of Ford's employee pricing program amid escalating tariff costs and recent vehicle price adjustments.
Sales Breakdown: Combustion, Hybrid, and Electric Vehicles
The automaker's sales surge was led by a 17.2% rise in traditional internal combustion engine vehicle purchases, complemented by an impressive approximately 29% increase in hybrid model sales. However, this growth was partially offset by a 25% decline in all-electric vehicle sales compared with May 2024.
Impact of Employee Pricing Program and Tariffs
May marked the third consecutive month of double-digit year-over-year sales growth for Ford, largely attributed to its employee pricing initiative. The program, which remains active through the Fourth of July weekend, offers discounted prices to customers, stimulating demand in a competitive market.
A Ford spokesperson emphasized the program’s effectiveness, stating that it continues to resonate with consumers and significantly supports sales figures.
The pricing strategy was implemented alongside President Biden's imposition of a 25% tariff on imported vehicles starting in early April. Following this, Ford introduced selective price increases on vehicles imported from Mexico, attributed to a mix of seasonal pricing adjustments and tariff-related costs.
Consumer Response and Industry Sales Trends
Starting in late March, consumers showed increased purchasing activity in anticipation of potential price hikes driven by tariffs, supporting automotive sales during the second quarter.
Despite these upward trends, industry analysts forecasted a moderation in the sales pace for May compared to preceding months. Specifically, Cox Automotive projected the seasonally adjusted annual sales rate (SAAR) for May to reach about 16 million vehicles, which is slightly above last year's level but notably lower than March's 17.8 million and April's 17.3 million SAAR.
Cox Automotive also expects total sales volume in May to increase by 3.2% from the previous year and 2.5% from the prior month, a rise partially credited to an additional selling day this May.
Summary of Key Sales Data
- 16.3% year-over-year increase in U.S. sales for May
- 17.2% growth in conventional engine vehicle sales
- ~29% surge in hybrid vehicle purchases
- 25% decline in all-electric vehicle sales
- Projected May sales pace: approximately 16 million vehicles annually
