Ford sales surge 16.3% in May amid employee pricing and tariff concerns
Ford sales surge 16.3% in May amid employee pricing and tariff concerns
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Ford saw sales surge 16% to 220,959 in May compared with the year-ago period.
Ford's employee pricing helped the sales volume as did consumers wanting to get ahead of future price hikes.
Ford Motor Co. reported sales gains in May as its employee pricing program continues and consumers looked to get ahead of future tariff-driven price hikes.
A year-over-year 16.3% gain in Ford's monthly sales allowed some on Wall Street to exhale even though the road ahead remains uncertain.
"The monthly sales were better than feared and is a small step in the right direction," Dan Ives, managing director at Wedbush Securities, told the Detroit Free Press, part of the USA TODAY Network, on June 3. But there's "still a lot of wood to chop ahead for (CEO) Jim Farley and Ford with tariffs and demand issues."
For the month, Ford reported total sales rose 16.3% to 220,959 vehicles sold compared with the year-ago period. Sales of its SUVs surged 25% when compared with May 2024 to 94,595 SUVs sold. Sales of pickups rose 11.2% to 121,354 units sold. But sales of Ford's electric vehicles plunged 25% to 6,723 EVs sold as overall consumer demand for EVs has slowed. Ford's F-150 Lightning EV sold just 1,902, a 42% decline, which also brought down the segment.
Ford's luxury brand, Lincoln, reported a 39% increase in sales to 11,573 vehicles sold.
Year to date, Ford Motor's total sales are up 6.1% to 930,925 vehicles sold compared with the first five months of 2024. Of the Detroit-based automakers, only Ford reports monthly sales.
'Momentum in Dearborn'
The automaker has been offering employee pricing to all U.S. customers since April 3. Analysts said the program, which runs to July 6, is driving volume. Also, some car buyers want to get ahead of possible price increases if President Donald Trump's 25% tariffs on imported vehicles and parts stick.
"In terms of straight-up sales volumes, Ford has been gaining momentum in 2025 − the brand grabbed sales gains in February, March, April and now May; volume in May was the best in more than five years," Charlie Chesbrough, senior economist at Cox Automotive, told the Free Press. "In Dearborn, the marketing team is likely celebrating their new American Made campaign, which may well be driving sales."
Since January, Ford has beat the drum in the media about how it is the most "American" car company of all, with 80% of the vehicles it sells in the United States also being assembled here.
"There's no denying Ford's success this spring," Chesbrough said. "Smart pricing, good product, the right marketing campaign − it's all come together for them recently. There is definitely momentum in Dearborn right now."
Ford sales helped by discounts
Ford's employee pricing program isn't just appealing to one type of buyer either, considering that many vehicles across the board and at an array of price points all saw sales gains, said Ivan Drury, director of Insights at Edmunds.com.
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For example, sales of the the 2025 Ford Escape, which starts at $28,150, soared by 24% to 17,395 sold in May. Likewise, the 2025 Ford Explorer, which starts at $40,050, saw its sales surge to 20,504 units, a 23% gain compared with May 2024.
"The messaging didn't just resonate with the super-budget-conscious buyer," Drury said. "Also, last I recall, Ford had some of the most bloated inventories with vehicle lot times still in the 80-plus days range until being sold; therefore, this is certainly helping dealers get some dusty vehicles off the lot."
Drury said Ford's strong monthly sales, however, are not indicative of what is to come for the rest of the year given that Ford announced future price increases.
"But that, too, could be playing into the psyche of buyers who are watching the market," Drury said. "Pull-ahead sales; why wait when you know you're staring at a higher price in the future?"
Average prices remain strong
In early May, Ford raised the prices on three of its Mexico-produced models, becoming one of the first major automakers to adjust sticker prices in response to Trump's tariffs. Prices on the Mustang Mach-E electric SUV, Maverick pickup and Bronco Sport rose by as much as $2,000 on some models.
Still, in May, Ford sold 4,724 Mach-E EVs, an 11% gain compared with the year-ago period. May sales of the Maverick rose 14% to 15,508 units sold, and sales of the Bronco Sport surged to 14,472, a 46% increase.
Ford said in its first-quarter earnings last month that Trump's trade war would add about $1.5 billion in net costs for 2025. Earlier in June, Ford Chair John Lawler said the automaker would adjust its operations and footprint over the next 12 to 24 months to find ways to mitigate the costs of tariffs.
Despite the employee pricing program, Drury said Ford's prices have held up. The average transaction price across Ford and Lincoln in May was $54,314, with an average discount of $3,962. That compares with April, when the average transaction price was $53,398 with a discount of $3,792, and March, when it was $53,909 and a discount of $2,481.
"The mix of pricier vehicles is holding up the average despite the deeper discount," Drury said.
Looking for a slowdown
Still, Morningstar's auto analyst David Whiston said carmakers' sales provide little insight into the health of their overall operations.
"The sales chart itself only tells you so much because it tells you nothing on pricing/incentives," Whiston said. "Pricing likely was not as good as it could have been due to employee pricing. Light-truck numbers looked great, new Navigator did well, and (hybrid) won out over (all electric)."
Whiston noted how the the publicly traded auto dealership companies were optimistic in their first-quarter earnings that new car sales and pricing would remain solid for the rest of the year. He is more skeptical.
"I think they'll be a bit of a slowdown but not a crash," Whiston said.
Jamie L. LaReau is the senior autos writer who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@freepress.com. Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber.
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