Ford Motor Co., looking to bounce back from a 12% sales decline in October, has launched a Black Friday clearance sale several weeks before those sales typically take place. The automaker is offering $1,000 “Black Friday Cash” rebates on 2016 and 2017 model-year vehicles, in addition to other offers. For years, automakers didn’t aggressively participate in Black Friday merchandising, instead relying on year-end clearances. In addition to tagging its sale as a Black Friday promotion, Ford is also calling the sale a “year-end event.”
A spate of Black Friday deals staged by several automakers in 2015 pushed November light-vehicle sales toward a 2015 record, perking up demand in a month that is typically a sluggish one for dealerships. Ford is ramping up deal making following its report last week of lower third-quarter earnings and pressure on margins in the core North American operation. After years of out-earning crosstown rival General Motors Co. on an operating-profit basis, the automaker likely will trail GM for 2016. Industry-wide light-vehicle sales in the U.S. fell 5.8% last month compared with October 2015, with declines mostly because of a disparity in selling days. Ford and Fiat Chrysler Automobiles NV were among the bigger decliners in the month as weakness among several of their product lines offset healthy full-size pickup truck sales.
Ford sold 187,692 light vehicles in October, compared with 213,105 in the month a year ago. Ford delayed its report until Wednesday because of a fire at its headquarters that prevented dealers from reporting final-day sales. As growth stalls, several auto makers, including Ford, are spending more on discounts and rebates. While Ford’s overall light-truck sales declined, its popular F-series pickup truck was a bright spot for the automaker. Sales increased modestly in the month to a total of 65,542 trucks, the vehicle’s best October in more than a decade. Ford spent heavily to lure buyers in October, dishing out $4,060 per-unit sold on average in October 2016 compared with $3,392 in October 2015, representing an increase of $668.
