"Ford's Stunning Leap Foward"

[a_Username]

http://www.fool.com/investing/genera...p-forward.aspx

I knew Toyota's (NYSE: TM) troubles were going to benefit somebody. And I knew Ford (NYSE: F) was on a roll.

But I didn't expect their results to be quite this dramatic.

Ford posted its February sales results today, and the numbers were outstanding. While the solid 43% gain over last February's results was impressive, the real mind-blower was this: Up 22% versus January.

This despite rough weather on the East Coast that was expected to mute sales significantly.

Wow.

That can't all be Toyota, can it?
There are a few factors there. First, Ford itself is on a roll, plain and simple: It's got hot products and a rapidly improving reputation. Second, fleet sales -- an important market for all of the U.S. automakers -- were all but dead at this time last year. And sure enough, Ford reports that fleet sales were up 74% over last February.

But it wasn't all fleet: Retail sales were up 28%. General Motors' combined sales -- retail and fleet -- were only up 12% over last year, and Honda's (NYSE: HMC) were up 12.7%.

GM's muted showing is one reason I can't yet say for sure that these sales were taken from Toyota. While Toyota's sales were down 8.7%, it's too early to tell who exactly benefited.

But no matter where those sales came from, Ford had a great month.

Digging into the numbers
How great a month? When compared to last February, it's all increases, everywhere we look. Cars? Up 54%. Trucks? Up 36%. SUVs up 39%. Ford brand up 46%, Lincoln 19%, Mercury 24%. Ford estimates that it gained three points of market share -- 17% versus 14% -- a seismic move if it can sustain it.

Oh, and this nugget: Ford outsold GM by 334 vehicles. That's the first time it has outsold GM on a monthly basis in the U.S. since 1998. For the moment, at least, that makes it No. 1 in America.

It's just highlight after highlight. The Fusion sedan? Up 116%. Taurus? Up 93%. F-Series pickups? Up 39%. Escape? Focus? Mustang? Up, up, up. You get the idea.

I can't find a weak point. It was a great month by any measure.

But can it last?
But as well as Ford is doing as a company, I'm not sure it can sustain it. With reports that Toyota and now GM are teeing up major marketing and incentives campaigns, that big market-share gain might prove challenging to hang on to. And if some big chunk of Ford's gains really did come from Toyota, and if Toyota is able to get past its troubles and regain its own mojo ... well, you can see the concern.

But one thing's for sure: It's going to be a while yet before the new automotive pecking order becomes clear.

Interesting article. As long as it is a domestic company on top, then I'm good.

[rayhawk]

I agree, that as long as it is a domestic company I could care less if GM or Ford sells the most cars. However, you have to consider that GM has half the brands they had last year, so it is not a surprise that GM is selling significantly less cars. Hopefully over time these moves will prove profitable for GM and allow them to focus on their core brands. Sustainability is not about sales volume, but about profitability per vehicle and the flexibility to adjust appropriately to market demand.

[Cmicasa the Great XvX]

Interesting thing that I realized as to why GM may have not gotten the lion's share of Toyota's drop off last month... It goes hand in hand with the ideas of being a SHEEP... and only listening to what the media says.

Let me explain... and this in no way is derogatory against Ford... Ford fans.. so take your "Sensitivity Skirt" off. The average Toyota buyer is.. we can all agree... a SHEEP. They literally will start a car conversation off with... "Consumer Reports says...."

Now take that and couple it with the forced abscence of their idol Toyota.. and the new found CR loverboy Ford.. and there U have it. Of course that still doesn't explain why a great deal of those Ford sales had to go to Fleet. It also is a bit skewed since a great deal of GM's stronghold in sales is in the areas that got pounded with 3 weeks of snow covered lots. PEEP THIS... an idiot friend of mine who loves Corvettes... says to me...

"I heard that last month Chevy only sold 624 Vettes. They sold more than that when my uncle bought his in August"

I just looked at him like

I mean I LOOOOOOOOOOOOOOOOOOOOVE Vettes.. but it would take a mutha effer dragging me by the ***.. to have gotten me in a Showroom to pull a Vette out on those salty roads. How effin disrespectful could U be to such a fine woma.. er... I mean car


GM lost 4 brands... had limited leasing... has limited production still on the HOT models... and many new products right around the corner

[ViperTomcat]

I'm Mopar all the way..but like a_Username said...as long as a domestic company is on top, then I'm happy.

[Mr. Wyndham]

Perception is reality. And perception is dictated by the media.

I'm just glad Ford got in the media's good graces, rather than honda or hyundai.

[Motown Machine]

The biggest benefactor of Toyota's troubles is Honda, because all the Asian-obsessed sheep will transfer over seamlessly from one company to the other. Then would be Hyundai/Kia, then, heaven forbid, an American car company.

[ron10]

wonder if i can get a government bailout for a new Z28.

[a_Username]

Originally Posted by Dragoneye

Perception is reality. And perception is dictated by the media.

I'm just glad Ford got in the media's good graces, rather than honda or hyundai.

We'll see about that. The results of Toyota's recent faults will make or break that theory.

[Motown Machine]

Originally Posted by a_Username

We'll see about that. The results of Toyota's recent faults will make or break that theory.

Well, there is real and serious speculation (probably from Pelosi & Co.) that this whole Toyota thing is being concocted by the White House in order to protect its interest in GM.

[a_Username]

Originally Posted by Motown Machine

Well, there is real and serious speculation (probably from Pelosi & Co.) that this whole Toyota thing is being concocted by the White House in order to protect its interest in GM.

Did you know that the White House was also behind Kennedy being shot? Can we please leave conspiracy theories out of this thread.

[Motown Machine]

Originally Posted by a_Username

Did you know that the White House was also behind Kennedy being shot? Can we please leave conspiracy theories out of this thread.

Deal.

[a_Username]

Originally Posted by Motown Machine

Deal.

Cool lol.

[meanmike]

Originally Posted by a_Username

Did you know that the White House was also behind Kennedy being shot? Can we please leave conspiracy theories out of this thread.

I dont know the government does buy alot of these. I smell something fishy.

[2000v6]

Originally Posted by Motown Machine

The biggest benefactor of Toyota's troubles is Honda, because all the Asian-obsessed sheep will transfer over seamlessly from one company to the other. Then would be Hyundai/Kia, then, heaven forbid, an American car company.

Actually you got that wrong it's more like:

Toyota/Lexus/Scion
Honda/Acura
Nissan/Infiniti
Hyundai/Kia
Suzuki
American or German