Ford Motor Company announced a 7.1% increase in US new vehicle sales in 2023 compared to 2022, marking its best annual performance since 2020. The growth was driven by strong demand for Ford’s lineup of trucks and SUVs.
Key Takeaways
- Ford’s 2023 US sales totaled 1.96 million vehicles, up from 1.83 million in 2022
- Sales increased 7.1% year-over-year, the highest growth rate since 2020
- Ford brand truck sales grew 5.8% while SUV sales increased 8.2%
- The F-150 continued its reign as America’s best-selling truck for the 47th straight year
- Ford EV sales hit a new quarterly record in Q4 2023, though growth slowed from earlier in the year
“Last year was an outstanding year for Ford in the US market thanks to very robust truck and SUV sales,” said Andrew Frick, Ford vice president of sales, distribution and trucks. “We are well positioned for growth in 2024 with the continued strength of vehicles like F-150 and Explorer combined with the addition of exciting new EVs like the F-150 Lightning.”
Ford Brand Sales Details
Ford brand sales, which exclude the company’s luxury Lincoln brand, accounted for 1.9 million vehicles sold in the US in 2023. This represents a 6.9% increase over 2022.
Sales of Ford trucks increased 5.8% year-over-year, driven once again by the enduring popularity of the nation’s best-selling vehicle.
Ford F-Series Sales
| Year | Units Sold |
|---|---|
| 2023 | 726,092 |
| 2022 | 686,352 |
The F-150 pickup truck has now been America’s top-selling vehicle for 47 consecutive years. The redesigned 2022 F-150 Lightning electric pickup saw strong demand in its first full year of sales.
Ford SUVs also sold very well, with Explorer sales increasing 15.9% and Escape sales up 1.3%. Overall Ford SUV sales climbed 8.2% for the year.
Record EV Sales Cap Strong Year
Ford set a new quarterly EV sales record in Q4 2023, though growth slowed from the rapid pace seen earlier in the year. Full year EV sales more than doubled from 2021 to 2022 and were up nearly 50% again last year.
Ford EV Sales
| Year | Units Sold | Growth |
|---|---|---|
| 2023 | 99,094 | +49% |
| 2022 | 66,000 | +138% |
| 2021 | 27,140 | – |
The Mustang Mach-E crossover was Ford’s most popular EV last year followed by the electric F-150. Ford EVs now account for over 5% of the company’s total US sales, up from just 2% two years ago.
“Demand remains very strong for the Mach-E and Lightning as well as our entire EV portfolio,” Frick said. “We expect the ongoing rollout of new EVs like the Transit van to drive significant growth again in 2024.”
Industry Sales Rebound in 2023
Ford’s strong 2023 performance comes as the auto industry rebounded from a down year in 2022. New vehicle sales industry-wide are estimated to have reached around 15 million last year thanks to improved inventory levels, down slightly from 2021 but well above pandemic-impacted 2020.
Toyota, GM, Honda and other major automakers also reported higher US sales in 2023, though most came in below Ford’s growth rate.
The seasonally adjusted annual rate (SAAR) of sales in December ticked up to 13.9 million vehicles, boding well for continued recovery in 2024 provided economic conditions remain stable.
Outlook for 2024
With US sales rebounding back near pre-pandemic levels, most analysts expect the positive momentum for Ford to continue this year thanks in large part to its truck and SUV lineup.
However, competition is heating up, particularly in the key pickup segment where the Chevy Silverado and Ram 1500 present ever-growing threats to the F-150’s dominance. The revived Ranger midsize truck could help Ford retain share.
On the electric side, Ford has promised to ramp up production capacity to 150,000 EVs per year by late 2023 to meet swelling demand. But Tesla, GM, Hyundai/Kia and startups like Rivian also aim to grab market share in this booming category.
Most projections call for auto sales to remain flat or dip only slightly in 2024. But with its broad lineup and loyal customer base, Ford seems poised for another solid year though matching 2023’s growth rate could prove challenging.
Reaction From Investors and Analysts
Ford’s shares dipped over 2% the day fourth quarter sales were announced, as the EV growth slowdown disappointed some investors. Shares are down 15% over the past year amid general market weakness.
However, most analysts remain bullish on Ford stock given its dominant position in pickups and large fleet of upcoming EV models.
Tigress Financial analyst Ivan Feinseth reiterated a Strong Buy rating on Ford shares after the sales update. He cited the company’s “significant EV growth opportunity and powerful new vehicle rollout plan.”
Others caution that Ford faces growing competitive threats and must flawlessly execute the launch of new electric trucks and crossovers in 2024 to hit its targets. Rising costs and raw material prices also present headwinds to profit margins.
But with the enduring popularity of trucks like Super Duty and Ranger, Ford still looks positioned to gain US market share this year. The blue oval leads all brands in overall vehicle sales through November.
“As long as F-Series continues selling over 700,000 units annually, Ford holds a strong hand versus auto rivals in the critical pickup segment,” said market analyst Jordan Edgington. “Combine that with one of the largest EV lineups by mid-decade, and this American auto icon isn’t going anywhere.”
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