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Executives

Erich Merkle -

Ken Czubay - Vice President of US Marketing Sales & Service

Jenny Lin -

Analysts

Brian Arthur Johnson - Barclays Capital, Research Division

John Murphy - BofA Merrill Lynch, Research Division

Peter Nesvold

Adam Jonas - Morgan Stanley, Research Division

Christopher J. Ceraso - Crédit Suisse AG, Research Division

Ford Motor Company (F) Monthly Sales Conference May 1, 2012 10:00 AM ET

Operator

Good day, ladies and gentlemen, and welcome to the Ford Monthly Sales Conference Call. My name is Katina, and I'll be your coordinator for today. [Operator Instructions] I would now like to turn the presentation over to your host for today's call, Mr. Erich Merkle, Ford U.S. Sales Analyst. Please proceed.

Erich Merkle

Thank you, Katina, and good morning, everyone, and welcome to Ford's April 2012 Sales Call. We want to thank you for joining us today. For the month of April, it would appear as though that sales have moderated slightly from first quarter's SAAR of about 14.9 million total vehicles. This would include medium and heavy trucks. We estimate for the month that total U.S. industry sales, including medium and heavy trucks, provided a SAAR for the month in the mid-14 million vehicle range.

We estimate that the calendar year-to-date SAAR is pretty much -- perhaps show just a slight increase over a year ago, with about -- I'm sorry, a slight decline from a year ago, excuse me, with -- at about mid-14s. The total sales were approximately, in absolute numbers, 1.2 million vehicles, and this again would include medium and heavy trucks. This would make it, in absolute terms, just a slight increase this month versus year ago.

Several other observations that we wanted to bring to your attention that we think are of note, the small car segment continued to hold higher levels of approximately 24% of the industry in April. This number is largely consistent with what we had reported to everyone in February and March. Mid-sized cars expanded to approximately 18% of the industry and marked a very significant increase compared to January's 14% and higher results than last spring's, the last springtime period of around 16%. Full-size pickups represented approximately 10% of the industry in April, and that is down from the 13.5% that was tallied in December. But it is -- we will note that it is higher than the 8% range that we saw last spring. Overall, industry incentive spending was down slightly versus March.

Now I'd like to turn it over to Ken for an update on the things that he was seeing in the month of April.

Ken Czubay

Thank you, Erich, and good morning, everyone. Overall, Ford Motor Company's sales of 180,350 vehicles for the month were down 5% on an absolute basis compared to 189,778 vehicles sold last April. Now I know that some of you use selling day adjustments for your sales calculations. For the month of April, the 24 selling days versus 27 in April of 2011, with the adjustment for 3 fewer selling days, our April sales were up 7% versus a year ago. And we continue to see strong demand for our fuel-efficient vehicles.

Let's start with cars. Fusion continues to be on a roll. Fusion posted a record April with 21,610 sales. We are encouraged with Fusion's strong results as we approach the introduction of the all-new model this fall. Focus continues to perform well, posting a 13% gain in April with 19,425 sales. Year-to-date, Focus sales are up 57%, making the strongest start for Focus since 2001.

Also worth mentioning, we saw a 6% increase in Taurus in April. The mix was an impressive 34% of our Taurus sales since the introduction of the 2013 model has been the EcoBoost-powered Taurus SHO. This compares to about 14% of the mix with the 2012 Taurus.

The improvements we made to the 2013 Taurus are significant. I drive one myself, and I really love that car. It is a really -- a refined vehicle, providing great power and torque and excellent fuel economy through the use of EcoBoost.

Now moving on to utilities. Edge also set an April record with 10,520 sales. Retail sales of the EcoBoost-powered Edge utility moved past the 20% mark for the first time in April. The 2.0-liter EcoBoost Edge provides customers with 30 miles per gallon.

Explorer delivered its best April since 2005 with 13,419 sales, a 7% increase over last year. Year-to-date, Explorer sales totaled 47,037, up 12%.

On Escape, as many of you know, we have now completed production of our 2012 Escape in Kansas City just last week, and we are ramping up production of the all-new 2013 Escape at our plant in Louisville. You might not be aware of the rich mix we're seeing on 2013 orders. Early orders for Titanium and SEL Escapes total nearly 50% of the mix. And 3 out of every 4 are equipped with the hands-free liftgate [ph] with motion-sensing technology [ph]. Check it out on youtube.com by searching 2013 Escape hands-free liftgate. It's really cool.

Now let's talk trucks. First of all, our fuel-efficient Transit Connect had an all-time best April with nearly 3,000 sold. The Ford F-Series, the #1 selling vehicle in America, reported sales of 47,453 in April. Year-to-date, F-Series sales totaled 191,280, an 11% increase over last year. Our EcoBoost-powered F-150 pickup was 43% of retail sales in April. Year-to-date sales of F-150 EcoBoost pickups are 42% among retail customers. Year-to-date sales of EcoBoost-powered F-150 are up 193% over last year, almost double the EcoBoost this year over last year.

The EcoBoost engine continues to be the powertrain of choice for so many of our F-150 customers. In fact, EcoBoost continues to win vehicle buyers of all types. In April, sales of EcoBoost-equipped vehicles totaled 15,607 vehicles, a 77% increase over last year. Through April of this year, we saw a 229% increase in EcoBoost, having sold 62,400 vehicles equipped with EcoBoost during the first 4 months of the year.

Plus, let me give you a brief recap and update of our sales of our Police Interceptor sales and -- sedans and utilities. This month, we delivered 1,214 of these purpose-built vehicles. We're very pleased with our initial strong results of these 2 vehicles, which are specifically designed to meet the needs of state and local police agencies. They're looking for capability and fuel economy now more than ever, and Ford is delivering to police departments across the country, including Chicago and Boston.

Finally, the redesigned Lincoln MKS and MKT also had their best April sales months. And we're also very pleased with the public's and the press's reaction to the all-new production MKZ that we revealed at the New York Auto Show in early April.

That's a look at April sales in detail. Now here's Jenny to provide all of us with an update on the U.S. economy. Jenny?

Jenny Lin

Thank you, Ken. Since our last monthly sales call, economic indicators suggest that the U.S. economy has been expanding moderately. Based on the government releases last Friday, the U.S. economy grew an estimated annual rate of 2.2% during the first quarter of 2012. Consumer spending accounted for over 90% of this growth rate, along with contribution from business investment.

During the first quarter, real after-tax income growth remained moderate, up by 0.4% over a year ago, while real consumer spending was up 1.9% over a year ago.

In terms of higher frequency economic indicators, unemployment insurance claims are at 382,000 in the latest 4-week moving average reading last week, which signals job gains should continue but at a somewhat slower pace. This Friday, as you know, employment report for April will be available.

Just a few minutes ago, at 10:00, the April reading for the Manufacturing Purchasing Managers Index was showing a very encouraging sign of continued expansion of the economy as the Index gained 1.4 points to 54.8% with orders, production, employment and faster supplier deliveries. 16 out of the 18 manufacturing industries reported growth.

In April, consumer sentiment edged up to 76.4, with higher -- with brighter outlook being able to offset a decline in current condition assessment. This is the eighth consecutive month of rising sentiment since the low of 55.8 in last August.

Good time to buy a vehicle index improved from 59% in March to 63% in April. Housing sector remains depressed. The overall level of activity is still low but is trending gradually higher. Housing permits rose by 30% during the first quarter, while housing starts are up by about 20%, with strength in multifamily unit construction.

Retail prices of regular unleaded gasoline have moderated in recent weeks. At the beginning week of April, the national average gasoline price was at about $3.94 per gallon. As of yesterday, it is about $3.83 per gallon as many of us have observed.

To recap, as Ken and Erich pointed out earlier, the U.S. new vehicle industry sales in April were estimated in the mid-14 million unit range as the seasonally adjusted annual rate. This is including medium and heavy-duty trucks. Our present call for the full year industry sales is in the range of 14.5 million to 15 million units, as we are very encouraged by the good performance during the first 4 months of the year.

With that summary, let me turn it back to Erich.

Erich Merkle

Thank you, Jenny. And I just wanted to make one statement on the SAAR. As Jenny said, we estimate that the SAAR for the month is in the mid-14 million unit range. Calendar year-to-date though, we want to make sure everyone is clear on this, is estimated to be in the high 14 million unit range. Higher than 2011. Okay?

And with that, I want to take a moment to go through some housekeeping issues. And if we start taking -- I want to take a look at our stock situation. In April of 2012, we had 143,000 cars in gross stock. We had 188,000 trucks and 145,000 utilities, bringing our total to 476,000 vehicles, representing a 66-day supply.

This compares to March of 2012, which was 145,000 cars, 190,000 trucks, 145,000 utilities with a total of 480,000 vehicles, providing a day supply of 58. If we compare this to April of last year, 2011, we had 108,000 cars, 181,000 trucks, 107,000 utilities, bringing our grand total at that time to 396,000 vehicles, representing 54 days’ supply.

In terms of our fleet -- this is for the month. Our fleet, it was represented, we had 37% -- was our total fleet mix, 15% of this was commercial, 5% was government, and 17% was daily rental. The calendar year-to-date, you will see that our mix is 33%. This is January through April. That's 15% for commercial, 4% for government and 14% for rental. This compares to the calendar year-to-date of last year which was 34% for the first 4 months. Last year, our commercial was 13% of that mix, government was 6% of the mix and daily rental was 15%.

So with that, Katina, I'd like to turn it over and open the line up to callers. And let's take the first set of callers from the analyst community, please.

Question-and-Answer Session

Operator

[Operator Instructions] And your first question comes from the line of Brian Johnson representing Barclays.

Brian Arthur Johnson - Barclays Capital, Research Division

Just want to drill down on the F-Series and, maybe while we're at it, the E-Series and the Ranger. Just overall, were pickup trucks at 10% of the market about where you're expecting March to be? And was there any sign through the month that with gas prices coming down that, that category was improving? And then secondly, any sense of where the Ranger former buyers are going or people with Rangers are coming in on their trade-ins? And can you capture some of that up in F-Series?

Ken Czubay

Brian, this is Ken. Good question. I think that the truck segment came in, the light truck segment, came in about where we had planned. We, of course, were pleased with our F-Series business. Like I said, it was very robust and consumers are continuing to switch over to EcoBoost. The Econoline business was good in April. It was up 2%. So we're pleased with that. Relative to the Ranger, as you know, we're in sell-down on that, and we're finding that we are right on plan with capturing Ranger customers moving up to F-Series. So many of them were looking for fuel efficiency, and they're opting for the EcoBoost F-150. So all that is on plan for us, and we're very pleased even with the ups and downs of the gas prices last month, although they moderated at -- F-Series had a darn good month.

Brian Arthur Johnson - Barclays Capital, Research Division

And how was Super Duty within that?

Ken Czubay

Super Duty was right on plan. I mean, we're finding that in the areas of the country where the oil and gas business is doing quite well, there's high demand for Super Duty. And we're finding that after a delay of purchases by the consumers because of the economy, they're coming back and they're buying with -- they're buying the Super Dutys.

Brian Arthur Johnson - Barclays Capital, Research Division

Does on plan mean growing faster? Or slower? Or right in line with the segment? I mean...

Ken Czubay

Oh, it's growing -- they're right in line with the segment.

Operator

Your next question comes from the line of John Murphy representing Bank of America Merrill Lynch.

John Murphy - BofA Merrill Lynch, Research Division

I have 3 questions for you. First, there's been some comments that you guys have made in the press that you might be somewhat capacity constrained as we go through the course of the year and there's capacity coming on. I was just curious, if you look at this from the sales and marketing angle, where you see that constraint hitting most in your vehicle product lines as we go through the course of the year? So that's the first question. Second, why is the Fiesta so weak? I mean, if you had one vehicle that you wouldn't want to be weak, it's okay for it to be a Fiesta. But just curious what the weakness is there? And third, the Explorer is continuing to really ramp up and we equipped above 13,000 units. That's definitely, I think, the best month since that new vehicle has been launched. So just curious if this is kind of the new run rate that we should expect for the Explorer going forward?

Ken Czubay

Well, let me try to get these in line for you, John. First of all, as we announced, we're taking production actions in Q2. And in the second half of the year and on an annual rate, it's about 400,000 vehicles added to production. We believe that, that's the appropriate amount to meet consumer demand. Secondly, your question was on a specific car lines. I think Focus was the #1, and we're eagerly looking forward to the increase in Focus production. That would be the item that we're playing -- paying special attention, and we're excited about having more of those available. Relative to Fiesta sales, I think that the comparison for last year is pretty tricky. If you remember last year, we were just launching the Focus. And anyone who is interested in that B and C-segment, those smaller cars, they then went and created really high demand for Fiesta. But now that the Focus is on dealer's lots, not to the level that we need them to be, but consumers have a great choice between the Fiesta and the Focus, and they're really choosing the Focus for the reasons they want. So we are pleased with the balance and how Focus has come on stream. And finally, what -- well, just to add a little more texture to that, on the Fiesta, we're at the normal volume that we think it'll be, and we're on plan with the Fiesta. And finally, on Explorer, we're very pleased with it. I think America is really realizing what a great balance of size and fuel efficiency that is, and we announced that we're adding a third crew to the Chicago plant, which is doing a great job. We're doing that in this quarter. So we hope to see more and more Explorers on the road. It's been very, very well received.

Operator

Your next question comes from the line of Peter Nesvold, representing Jefferies & Company.

Peter Nesvold

Can you talk to the pricing environment during the month? What does ATPs look like year-over-year for the month of April versus year-over-year in the month of March?

Erich Merkle

Sure. If we take a look at our transaction prices for the industry, you're looking, they were up. Some are a couple of hundred bucks for the -- sequentially. And we looked at the industry compared to last year, up a little over $100 [ph] on transaction prices.

Peter Nesvold

Okay, great. And then just my follow-up question now. Anything particular about the cadence of sales as the month progressed?

Erich Merkle

Yes, I think the cadence, it really -- it ended on a very strong note. I would say that the industry pulled together and came in pretty strong towards the end of the month.

Operator

Your next question comes from the line of Adam Jonas, representing Morgan Stanley.

Adam Jonas - Morgan Stanley, Research Division

A question on Mercury. Can you elaborate on your strategy for retaining some of the old Mercury customers? You got a good sense of those coming off lease and working with the dealers for current Lincoln -- sorry Mercury drivers. And are you trying to get them into the Lincoln brand? Maybe you could tell us a percentage of the former Mercury owners that are going to Ford versus Lincoln?

Ken Czubay

Well, Adam, I'll take that. This is Ken. Obviously, we developed an aggressive marketing plan to keep the Mercury owners in the Ford family. It's divided between offering them solid offers to go to Lincoln, their choice, or go to the appropriate Ford product. And our offers take many forms, including utilizing our great asset, Ford Credit. And we are doing a good job. We're getting those consumers into Ford products. And it's -- basically, the renewals are almost 3/4 of the Mercury consumers on lease. So we're pleased with that, and we're very eager to have them enjoy the benefits of the products on the Ford side and on the Lincoln side.

Adam Jonas - Morgan Stanley, Research Division

Great. Next question is on pricing again. What segments have you seen the strongest or weakest pricing in terms of competition? Can you highlight any that stick out?

Ken Czubay

Well, right now, we're in a transition to our '13s, and I think we probably have one of the highest transition rates in the industry to go there. There's a tough segment competition with C and CD in the small utility, but I mean, at the end of the day, the consumers are really brightening up to the Ford offerings. And I think they're continuing to see not only the great styling but the advances in fuel economy that we're offering.

Adam Jonas - Morgan Stanley, Research Division

Okay. And just finally, the market share loss year-to-date and also this month, if you were to narrow it down to like your top 3 reasons why the share’s been weak, what would you highlight in terms of your ATP levels being a bit higher or stock levels too low, or anything else that you would highlight as to why your share has been drifting here?

Ken Czubay

Well, I think we addressed the rise in the market to the rise in our production. And we're addressing that with, as I mentioned a few moments ago, with the increases in production in Q2 -- in Q3. The other is, is that we're managing our business very wisely, and we're taking the appropriate look at rental cars, for example. And we're -- as Erich mentioned, we're stressing our commercial business, and it's a good balance overall between the fleet and between addressing the very high demand through our dealers on the retail side. So we'll be caught up with the share as our production comes online in Q2 and the second half of the year.

Erich Merkle

And we'll continue to make adjustments as we move forward too, Adam. So okay?

Operator

The next question comes from the line of Chris Ceraso, representing Credit Suisse.

Christopher J. Ceraso - Crédit Suisse AG, Research Division

A couple of questions on the Escape. First, can you just let us know when you expect the full availability at the dealers? And then second, importantly, where do you think the Escape is currently trading relative to the top competitors in that segment? In other words, is there a transaction price gap of $2,000 or $3,000, kind of like what we've seen on other products that you expect to be able to bridge when you come out with a new product?

Ken Czubay

Well, first off, as I mentioned, we ended production of the current-model Escape last week, and we are ramping up production for the new Escape as we speak. We'll have availability in Q2. We're very excited about that. And of course, the press has been excited about the styling and the significant gains in fuel economy. And relative to transaction prices, we plan on being right in the heart of the market. So this will be -- you always have to balance the competitive environment, and we will be right there.

Christopher J. Ceraso - Crédit Suisse AG, Research Division

How far below the market are you today though?

Ken Czubay

We are not.

Christopher J. Ceraso - Crédit Suisse AG, Research Division

You're not. So you're saying that there is not much of a gap to bridge?

Ken Czubay

No. I mean, that's what I'm saying, yes.

Erich Merkle

We're in line.

Christopher J. Ceraso - Crédit Suisse AG, Research Division

Okay, I confuse -- I thought that was part of the strategy, and that's what's driven -- big pricing gains at Ford for the past few years is bringing those transaction prices up to market on things like the Taurus, the Focus, the Explorer. I thought the Edge -- the Escape was the next one to come up to market.

Erich Merkle

Well, Chris, we'll have to see. I mean, when you take a look at the new -- the new Escape, we are -- we have a Titanium that we didn't have before. And when you look at some of our early orders, it's a very rich mix on Titanium and SEL.

Ken Czubay

I mean, the other thing, Chris, is we are right on market now, and we're in sell-down. And when we come with the next model later in this quarter, we'll be right in the heart of the market. So we're fine with our strategy.

Erich Merkle

So we will have a competitive base price. But then again, we're going to have a very high-level Escape, Titanium, and we'll have to see how the market receives all those different models and what the mix is.

I'm going to turn it over to the media now, if I could. Katina, could we take some calls from our friends in the media, please?

Operator

[Operator Instructions] Your first question comes from the line of Dee-Ann Durbin, representing the Associated Press.

Dee-Ann Durbin

Broadly speaking, do you think we should expect SAAR to be a little bit lower in the second quarter than in the first? It seems like maybe that's starting to happen in April. And the second question I had is, do you think you've permanently given up some of the police car market? Or is there a point at which we can expect Interceptor models to get back up to where the Crown Vic was, looking at -- just looking at your sales in April where Crown Vic was last year.

Erich Merkle

In relation to the SAAR, Dee-Ann, I think when we look at our estimate for this month being in the mid-14 million range -- I mean, you look calendar year-to-date, we're in the high 14 million. So I think it's a lot to read into just, say, one month of SAAR. Was it -- so we continue -- we're not looking -- we're looking to maintain our guidance for the year, and we're looking to stay in the range of 14.5 million to 15 million vehicles for the year. So right now, it would seem as though we're moving pretty solidly in that range.

Ken Czubay

And relative to your question on Police Interceptors, we're very happy that this is the first month when the agencies were taking delivery. The results have been very positive throughout the police and law enforcement community, the reaction to the product. We have a solid order bank. And as we all know, the governmental agencies, their budgets are really under a lot of stress. But what we're finding is they are very, very supportive of the new products, especially with the significant gains in fuel economy. I mean, they're buying gas same as everybody else is, and they are really enjoying the gains with the EcoBoost engines.

Operator

Your next question comes from the line of Mike Ramsey representing the Wall Street Journal.

Mike Ramsey

I had 2 quick questions. One, I guess on the Fiesta. Ken, you said that you're satisfied that this is going to be about the normal run rate for the Fiesta, which I calculate to be around 65,000 on an annualized basis, somewhere around that last year. That seems kind of low for -- is it just because it's not a profitable vehicle that you -- or not as profitable a vehicle as the Focus, that you'd want to keep the rate -- or that you'd be happy with that rate? Because fuel prices are high, I sort of expect that Fiesta would be doing well.

Ken Czubay

Okay, Mike. Do you have a second question? Then I will...

Mike Ramsey

Okay. The second question is I'm confused about a 37% fleet mix in April with also saying that you guys are a little bit capacity constrained. I mean, that doesn't seem to jive. I mean, why would you sell 37% of your vehicles to corporate customers if you're capacity constrained?

Ken Czubay

Here I'll line them up. First off, with the Fiesta, as a career sales marketing guy, we're never satisfied. But what I want to point out is when we have 2 products like the Fiesta and the Focus, there'll always be some balance. And the Focus sales have been really robust. We've got great demand from the consumer, great demand from our dealers, and we're ramping up production. We're ramping up production in Q2 as we've announced. So they will reach a natural water level, and we will meet the production to meet demand. But right now, the consumers are just in love with the Focus. Relative to the fleet business, there's 2 parts to that answer. First of all, it's very difficult to look at them month-by-month. And as -- we have an annual plan. Our annual plan is right on plan. As a matter of fact, it's almost exactly the same for fleet business as it was last year. There's a good balance, the business is well run by our team. The other is when you look at the commitments that we make, that throws the calendar off. Because we make long-term commitments to both our commercial, our government and our rental car consumers, so we fulfill them as the plant’s able to build them. So honoring our commitment is very important to us. And finally, I want to point out that the commercial business, as you know, there's 3 parts of fleet: commercial, government and rental car. The commercial part continues to be the best-performing year-over-year part of our business. So all in all, it's a very well-run business at Ford Motor Company.

Mike Ramsey

My understanding is that the margins usually are lower on commercial business. So if you were -- than retail is that...

Ken Czubay

Well, the margins are very competitive in retail and fleet. And there are many aspects of maintaining commitments and keeping the vehicles in the market, especially with commercial. So it's a well-run business that has contributed to our North American business model.

Operator

Your next question comes from the line of Brent Snavely, representing Detroit Free Press.

Brent Snavely

Just a minor detail. Can you repeat the commercial fleet percentage? And then I wanted to ask about Lincoln, and I was wondering what kind of incentives you have on Lincoln and what your outlook is that -- is for that strategy for the remainder of the year?

Erich Merkle

Sure, you bet. I'll give you the commercial percentage for April. For April, the commercial percentage was 15%. Okay? And then year-to-date, January through April is 15%.

Ken Czubay

And let me answer the Lincoln question. We had a record April in our new products, the MKS and the MKT. A redesigned product, so we're really happy with that. We're in transition with our other products. And as I mentioned, the MKZ was unveiled, the production model at the New York Auto Show. We'll be selling that in the fall of this year. We're really excited about that. And calendar year-to-date, the Lincoln business is 99 vehicles less than it was last year. So with those ins and outs, the business is on track.

Brent Snavely

Okay. So I mean, I've seen some -- some early reports suggest that Lincoln -- ranked by brand, Lincoln had the highest incentives in April. Do you guys agree with that data? Did Lincoln have extra high incentives last month? And do you plan to continue that?

Ken Czubay

We disagree with that data. We did not have the highest incentive. And as a matter of fact, even transitioning into the new vehicles, the 2013 MKS and MKT, we set April records, and we had lower incentives on those vehicles.

Operator

Your next question comes from the line of Keith Naughton, representing Bloomberg.

Keith Naughton

I'll do the 2-question thing too, and I'll start, Ken, with Fiesta again. I wanted to draw you out a little bit more on something you said that buyers were choosing Fiesta over Focus, and Fiesta has been down for 5 consecutive months now by double-digits, with April being the largest with its 44% drop. So with gas prices up, why are they choosing Fiesta over Focus, do you think? And then my second question is, I just needed a little more clarity on share. I wasn't sure if you were saying earlier your share will go back up or if you feel like this will be a year of down share?

Ken Czubay

Well, first of all, you must have misunderstood. The Focus sales are up and the Fiesta sales are down. So what I said was now that -- last year, when we had Fiesta and we were just launching the Focus, consumers were going to Fiesta. This year, as we have Focus fully engaged, consumers are switching in their choice to Focus, and we're in balance, the sales balance. And so the Focus is going quite well. Relative to full year market share, we have said that it’ll be lower than 2011, and that's what -- that's the guidance that we provided.

Keith Naughton

Right. And I'm sorry, if I flip towards Focus and Fiesta, I'm sorry, but what I was just asking is why consumers would choose a Focus over a Fiesta, which is more fuel-efficient, when gas prices are $4 a gallon. And if I said that backwards, I apologize.

Erich Merkle

Keith, if you were to look at the industry and the mix between compact cars and sub-compact cars, you'd find that it's about 75-25, 80-20, somewhere in that range. So it's not just a matter of Focus, Fiesta. It is the industry that overwhelmingly swings more towards compact cars than sub-compact.

Ken Czubay

Yes, in terms of fuel economy standpoint, you can get either a Fiesta or a Focus that delivers over 40 miles per gallon. And the consumers are just making a choice of what size fits them best.

Operator

Your next question comes from the line of David Shepardson representing Detroit News.

David Shepardson

2 questions. One, can you speak generally to why you think truck sales performs so much better than cars, given that gas prices remain relatively high? And then in April, did you sell any Ford Focus EVs? And if so, how many?

Ken Czubay

I'll take that. David, this is Ken. First off, relative to truck sales, I think there are 2 drivers to that. Number one, the EcoBoost on the F-150 as I said, which has been in the mid-40% of the retail sales, is a real driver of F-150 sales. So with fuel prices high, consumers still are needing to have replacements. And they're choosing the F-150 with EcoBoost. Really, really happy with that. And EcoBoost sales are almost double from where they were last year. There's also a significant amount of replacement going on in the industry. As you see an aging of the fleet on the truck side, the truck owners are saying it's now -- it's time -- over 50% of the truck owners are over 10 years. And they're making a choice, and they're saying, "I can repair or I can replace." And then they say, "Wow, look at the fuel economy, I can get that back rather than the -- than the repair cost of doing it." Relative to Focus BEVs, we did not sell any last month. We delivered some early commercial vehicles at the beginning of the year, and we will soon be selling them in New York, New Jersey and California. It was our plan not to sell any in April.

David Shepardson

So will you start -- can you give us some clarity as to when you -- when those sales will start? Is that going to be this month or in those select markets?

Ken Czubay

We'll keep you posted on them, but we expect them to be later this year.

Operator

We have no further media questions.

Erich Merkle

Okay. Well, very well. Katina, thank you very much for your help today. And thank you, everyone, for participating in this month's call. We look forward to speaking with everyone again next month for our May sales results. Thank you very much.

Operator

Ladies and gentlemen, thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Good day.

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Source: Ford Motor's Management Host Monthly Sales Conference (Transcript)
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