Ford Motor’s U.S. new vehicle sales experienced an 11.2% increase last month compared with May of last year, driven by robust sales growth in all-electric and hybrid models.
The Detroit automaker revealed a substantial 65% sales surge in both hybrid and all-electric vehicles, contrasting with a 5.6% rise in sales of Ford’s traditional internal combustion engine vehicles.
Despite the notable growth in hybrids and EVs, sales in these segments combined for about 26,600 vehicles, accounting for only 14% of Ford’s total sales of over 190,000 vehicles last month.
The rise in EV sales presents a dilemma for investors. While Ford aims to expand EV sales to achieve scale and offset tightening fuel economy standards and emissions, its Model E electric vehicle unit has reported significant losses.
In April, Ford disclosed that the division incurred a $1.32 billion loss on 10,000 vehicles wholesaled from January through March. Even considering EV-related businesses such as software, these losses amount to approximately $132,000 per vehicle sold by the unit.
In May, Ford nearly doubled sales of its all-electric F-150 Lightning pickups compared to May 2023, with sales of the Mustang Mach-E EV also surging by 46% year over year.
The spike in hybrid sales aligns with Ford’s strategy to emphasize the technology. Earlier this year, the automaker announced a delay in the production of new all-electric vehicles to focus on offering hybrid options across its entire North American lineup by 2030.
Ford’s total year-to-date U.S. sales through May reached 877,685 units, up 5.6% from the same period in 2023. This growth has been led by a roughly 10% increase in SUV sales and a 2.5% uptick in truck and van sales.
