Ford Profits Double Due to Truck and SUV Sales
2016 is proving to be a successful year so far for auto brands, with Ford enjoying record-breaking profits. Strong truck and SUV sales all across the globe have led to the company’s profits doubling to $2.5 billion in the first quarter of 2016 alone, after taxes. Ford representatives say the brand already plans to surpass 2015’s pretax profit of $10.8 billion.
Ford currently ranks as the number two carmaker in America, but that’s swiftly changing as the brand’s popularity skyrockets in the face of low gas prices and high sales numbers. Over the course of the company’s entire history, which has now spanned over 112 years, Ford has never seen a first quarter quite as profitable as this one. With $3.8 billion before taxes for this quarter, sales are above and beyond what the brand could’ve predicted.
Worldwide sales rose to 1.7 million units for the first quarter — a 10 percent increase. Demand for SUVs drastically increased in North America, China, and Europe, with China’s sales numbers going up by 38 percent. In the United States, F-series trucks, the Explorer, and the Transit enjoyed dramatic increases in sales.
In addition to great sales, Ford’s shares have also jumped, due to shareholders more heavily investing in the brand following their announcement to develop a 200-mile electric vehicle to rival the upcoming Tesla Model 3 and Chevrolet Bolt. Because of this, shares rose 50 cents to $14.16.
Ford analysts had predicted to make revenue of $35.59 billion, with actual revenue coming out to $37.7 billion — over a 2 billion dollar surplus. Unprecedented truck and SUV sales considerably contributed to the drastic change for the better, while Ford continues to look forward to a brighter and more successful future the rest of the year.