Ford’s market share in North America declines in first quarter image

A stronger U.S. dollar had a negative impact for the Ford Motor Company as its market share in North America went down 0.6% in the brand’s largest market. However, Ford managed to grow its global market share by a small 0.2%, having now a 7% share in the global auto industry.

Ford’s pretax earnings saw a major decline of $160 million compared to last year. The decrease in its profits was caused by the higher costs for product development and also by the advertising Ford has used to promote and increase sales for its new car models. Moreover, Ford’s commodity costs went down as the price of steel, which is a highly important raw material used by auto manufacturers, also slid. Due to long-term purchase contracts, the commodity costs might see an even bigger decline in the upcoming quarters because of a lag effect in pricing.

The first quarter of 2015 shows that the high pricing of the American multinational’s new models is the factor that keeps leading to the company’s growth, as the American carmaker benefited from retail sales of its new models. A decline was also registered by Ford Motor Company in South America where a recent economic slowdown has shown its effects.

Brazil is Ford’s largest market in South America, where most of the countries have been affected by a stagnant growth to which a high inflation added. The local currencies against the U.S. dollar have also been weak, which has not helped Ford’s sales in the area.


By Gabriela Florea