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Fords’ profits increase by $2bn during pandemic

by LLB Finance Reporter
1st Dec 20 2:26 pm

Though for most manufacturers year-to-date (YTD) auto sales are still in the red, Q3 results showed signs of a rebound to pre-pandemic levels in the near future.

According to the research data analyzed and published by Finaria, US auto sales sank by 9.2% year-over-year YoY in Q3 2020, going from 4.3 million to 3.9 million vehicles sold. However, the figure marked a 33.3% surge quarter-over-quarter (QoQ).

Despite a 9.9% sales decline, General Motors Co. took the lead with 665,192 unit sales. Based on its earnings report, the Detroit-based automaker made $4.4 billion in profit, up by 74% YoY on equal revenue.

Fords’ Profit in Q3 2020 Increases By $2 Billion

In Q3 2020, the total US passenger car sales slumped by 21.7% YoY to 904,864 units from 1.16 million in Q3 2019. But for trucks, SUVs and minivans, there was a 4.7% YoY drop from 3.15 million to 3 million. Q2 2020 was considerably worse with 680,000 passenger cars and 2.26 million trucks, SUVs and minivans. From the start of 2018, Q2 2020 was the worst quarter on record, followed by Q1 2020 and then Q3 2020.

For General Motors Co., the top performer was the Chevy Blazer, with 29,486 unit sales, up by 45% YoY. Its sales increased by 103% YoY during the first nine months of 2020, reaching 71,356 units.

On the other hand, Ford Motor Co. posted a 4.9% YoY sales decline with 551,796 unit sales in Q3. However, its profits increased by $2 billion to reach $2.5 billion during the period.

Ford, which had the third highest decline in sales, was also the third best-selling automaker with 507,351 unit sales. Its profits surged by 26% to $3 billion in the three-month duration.

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