Ford Gobbles Market Share as Pricing Strategy Drives Demand
With tariffs affecting vehicle import shipments as well as long-term production strategies, the Trump administration pulling back support for the electric vehicle (EV) industry, and a devastating price war in China, there's a lot to digest for auto investors. Through all the noise, however, Ford Motor Company's (NYSE: F) aggressive employee pricing for all customers has been a huge success and could be setting the company up for a stronger quarter.A couple of months ago, Ford announced that it would offer employee discounts to all customers through June 2, which was later extended through July 6, covering nearly all Ford and Lincoln models. The employee discount will be applied in addition to any other incentives. It's an aggressive move that can save several thousands of dollars on most vehicles at a time when many people are concerned about rising new vehicle prices. The good news is that the pricing strategy has driven substantial demand for Ford and increased its market share over the past two months, compared to the prior year. More specifically, Ford posted a 14.7% share of the U.S. market at the end of May, up 1.9 percentage points compared to the prior year. It's a big gain for Ford, which typically competes with its rivals for tenths of market share.Continue reading
With tariffs affecting vehicle import shipments as well as long-term production strategies, the Trump administration pulling back support for the electric vehicle (EV) industry, and a devastating price war in China, there's a lot to digest for auto investors. Through all the noise, however, Ford Motor Company's (NYSE: F) aggressive employee pricing for all customers has been a huge success and could be setting the company up for a stronger quarter.
A couple of months ago, Ford announced that it would offer employee discounts to all customers through June 2, which was later extended through July 6, covering nearly all Ford and Lincoln models. The employee discount will be applied in addition to any other incentives. It's an aggressive move that can save several thousands of dollars on most vehicles at a time when many people are concerned about rising new vehicle prices.
The good news is that the pricing strategy has driven substantial demand for Ford and increased its market share over the past two months, compared to the prior year. More specifically, Ford posted a 14.7% share of the U.S. market at the end of May, up 1.9 percentage points compared to the prior year. It's a big gain for Ford, which typically competes with its rivals for tenths of market share.
