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Ford seems to be the hardest hit from the microchip shortage and supply chain issues this year out of the big 3 auto manufacturers in Detroit. For example, F-series deliveries in June are down 30% over 2020 pandemic numbers. This puts F-Series deliveries down 12% for Q2 over last year. In contrast, both Ram and Silverado deliveries in this timeframe are up substantially year over year, Ram up near 40% and Silverado up over 30%. Even though these numbers are skewed because they are in comparison to numbers from the height of the lockdowns and the coronavirus pandemic, at least they are moving in the right direction and look to be on the way to recovery. Ford on the other hand, even after reporting total sales up over 9% for Q2, significantly less than their competition, has left me with a lot of questions as to the state of the company. I have been seeing a lot of presentations on future products and EVs but when vehicles have been on order with them for 6+ months and Ford still has not even provided a tentative estimate for production times, I start to get worried.
Vehicle prices are way up and rising. The average auto transaction was $40,200 in June, this beats the previous record of $38,500 in May. Incentives from manufacturers are down 43% from last year and again we expect this trend to continue. This, of course, is a symptom of increased demand for new vehicles and a massive hit to production and availability.
Vance Pearson, the Former Regional Director and International Executive Board member for the United Autoworkers Union, was sentenced to 12 months in prison for racketeering in the corruption case involving several ex UAW officials. Pearsons cooperation was imperative to getting the two biggest prosecutions in the case with the guilty pleas from ex UAW President Gary Jones and ex UAW President Dennis Williams. Pearson’s lawyer asked for no jail time and only probation because of this cooperation but will serve a year instead.
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