Economy

Ford reported strong demand for new vehicles in September

Ford reported strong demand for new vehicles in September

(Reuters) – Ford Motor Co. (NYSE:) on Tuesday reported strong demand for new cars in the United States in September amid inflation concerns, but supply problems weighed on sales.

A company spokesman said sales in the month fell slightly due to a lack of supplies, adding that higher than planned “vehicles on wheels” were being manufactured but were waiting for parts. These units are updated and shipped daily.

“Demand remains strong with new retail orders growing rapidly,” Andrew Frick, Ford’s vice president, said in a statement.

Ford sold 464,674 vehicles in the third quarter, up from 400,843 vehicles in the previous year.

Ford’s comment comes days after an inflation warning from the nation’s largest used car retailer, CarMax Company (NYSE:), which said softness in second-hand consumer purchases extended into the past month.

Analysts warn that overheating demand for cars and trucks could lose steam in the coming quarters as higher interest rates discourage consumers from paying more for cars.

However, the inventory shortage was still playing out for the major automakers in the third quarter.

Peer General Motors Co (NYSE:) on Monday reported a 24% jump in quarterly sales Toyota Motor Corporation (NYSE) sales in the United States fell 7.1% to 526,017 vehicles.

Ford, which aims to catch up with electric-vehicle leader Tesla (NASDAQ: Inc), saw its sales of electric vehicles triple in September from a year ago, boosted by sales of the F-150 Lightning pickup truck.

“The F-150 Lightning remains one of Ford’s fastest dealership vehicles, turning out in just eight days,” Ford added.

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It comes as Tesla said on Sunday it sold fewer cars than expected in the third quarter as deliveries were delayed from production due to logistical obstacles.

“The shortage of truck drivers and railroad capabilities presents distribution challenges for companies across many industries,” said US, Italian and French automaker Stellantis NV.

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