More recently, Ford Motor Company (NYSE:F) released June’s car sales data, which on first looked extremely disturbing. Though overall sales in the month declined 5%, the composition of sales recorded significant change. Passenger sales declined considerably, but truck sales and SUV sales were up YoY, despite overall monthly sales being down.
This came as a big positive for company, as both trucks and SUVs come with remarkable higher average selling prices, which indicates that revenues may have essentially increased, despite a decline in volumes, and that too with higher margins, which implies that the earnings a truck or SUV produces are higher than the earnings that automaker registers from selling a passenger car.
Last month, Ford Motor reported that it is associating with Deutsche Post AG on the new vehicle, as the company secures a big-name associate to support its portfolio of battery-run StreetScooters. This new electric van will be used for package delivery purposes. Production will commence in July, with the objective of assembling minimum 2,500 vehicles by the close of 2018.
The German postal company has made amazing inroads into the electric-vehicle segment by advancing a bare-bones model having no air-conditioning or radio and no passenger seat. The mail carrier intends to electrify its international fleet of 92,000 vans in a move away from diesel, which is facing scrutiny due to health issues.
StreetScooters will be progressively deployed in rural segments as battery capabilities enhance, and Deutsche Post intends to increase production to 20,000 vehicles yearly. The firm now runs 2,500 of the vans.
In the last trading session, the stock price of Ford gained 0.71% to close the day at $11.34. The gains came at a share volume of 18.88 million compared to average share volume of 37.78 million. After the recent gain, the market cap of firm now stands at $45.48 billion.