(Reuters) – Ford said on Friday its third-quarter sales fell 6.6%, as the Detroit automaker phased out its Escape and Lincoln Corsair crossover models.
Sky-high gasoline prices after the U.S.-Iran war and higher costs for everything from groceries to insurance have nudged some buyers away from thirsty engines to hybrid vehicles.
Regular gasoline prices have hit a national average of $4.43 a gallon in September, according to industry group AAA, compared with $3.20 a gallon year earlier.
“We are definitely seeing more demand on the hybrid powertrain, including on the F-150,” Ford executives told Reuters on Friday.
Ford’s sales decline is on par with its Detroit peers who are fending off stiff competition from Asian automakers such as Toyota and Honda with hybrid-heavy lineups.
Quarterly sales of Ford’s trucks, which includes its flagship F-series models, rose 0.5% from a year ago to 315,112 units.
Although auto loan rates have declined, affordability remains a challenge as higher vehicle prices and lower trade-in values push monthly payments higher.
The average new-vehicle transaction price rose 1.9% to $50,089 in August, according to industry expert Cox Automotive.
Sales of Ford’s affordable Maverick pickup truck, which is offered with a hybrid powertrain, rose a little over 20% to 41,970 units.
Ford’s overall third quarter sales fell 6.6% to 509,764 units from a year earlier.
Reporting by Nathan Gomes in Bengaluru; Editing by Sahal Muhammed
