Ford Motor Company (NYSE: F) stated that its European sales edged higher by approximately 8.5 percent in the month of August from the previous year, as it aims to establish an extremely lucrative first half of this year.
During the month of August, the auto maker was able to sell around 74,800 vehicles in the 20 markets in Central and Western Europe, which it regards as its core European market. This figure is equivalent to 8.5 percent higher in comparison to the previous year, but it trailed the larger market’s gain of nearly 10 percent. The car manufacturer’s market share in its core European market dropped 0.3 points to hit 7.6 percent.
For the entire Europe, including Turkey, the Russia, the countries of Eastern Europe and the former Soviet republics, the sales of the car company were higher by around 2.3 percent on a year-over-year basis in the month of August. Additionally, Ford’s market share for Europe as a whole slipped 0.3 points to reach 7.3 percent.
The positive news here is that the most lucrative product lines of the auto giant are showing a good performance.
Aside from that, Ford’s commercial vehicles are showing strength and its Ranger pickup and Transit van line sales were higher by 15.3 percent during the month of August. On a year-to-date basis, the sales are higher by 17.6 percent making the company the top commercial-vehicle brand in the continent so far this 2016.
When it comes to SUVs, the Kuga which is most popularly known as the European twin of Escape attained its best-ever August in the region. The newly included Edge is also gaining foothold in the continent.
While performance vehicles do not necessarily sell in massive volumes, they generate huge profits. These vehicles have become a priority for the auto maker globally under the leadership of CEO Mark Fields. The sales of Focus ST, Mustang, Fiesta ST, and Focus RS collectively were greater by 51 percent in the month. Ford bragged that for the second month this 2016, the Mustang managed to outperform the Porsche 911 in terms of sales on its home turf to serve as the best-selling sports car in Germany for the given period.
After several years of losses in Europe, things have turned back around for the car maker. During the first half of this year, Ford Europe generated a pre-tax profit of $901 million.
The executives of Ford have recently stated that the usual seasonal selling patterns in Europe and pressures related to the Brexit could soften the company’s results in Europe for the second half of this year. Although this may be true, Ford’s results for the month of July and August were strong. Furthermore, it is important to note that two-thirds of the way through the fiscal third quarter, the key catalysts for profit seem to still be on track.