(Reuters) – Ford Motor reported a near 9% drop in first-quarter U.S. sales on Thursday, as persistent affordability pressures prompt consumers to rethink big-ticket purchases.
Higher financing costs, elevated sticker prices and the expiry of federal tax credits for electric vehicles have hampered demand for new cars across the U.S.
Ford’s truck sales declined 11.3% in the quarter ended March 31, while sport utility vehicles fell 7.8%, reflecting weaker showroom traffic across its core lineup.
Shares of the Dearborn, Michigan-based automaker were down 2.5% in morning trading amid broader market declines.
The ongoing Middle East conflict has further weighed on sentiment as a war-driven surge in energy prices squeezes household budgets.
Although higher fuel costs typically spur interest in electric vehicles, analysts say demand for EVs could remain under pressure amid elevated prices and reduced incentives.
Sales of Ford’s electric models fell nearly 70% as demand dwindled due to fading federal incentives.
Overall U.S. auto sales dropped 5.3% in the January-March period from the prior year, according to research firm Omdia. Ford rivals General Motors and Toyota also reported lower sales on Wednesday.
Concerns over affordability have also pushed buyers toward cheaper, entry-level variants, prompting automakers to expand the availability of value trims.
Combined sales of entry-level versions of Ford’s Maverick, Ranger and Bronco Sport rose 8.4% during the quarter.
Ford’s overall sales fell to 457,315 vehicles for quarter, compared with 501,291 a year earlier.
Reporting by Nathan Gomes and Shivansh Tiwary in Bengaluru; Editing by Diti Pujara
