Ford Motor(F) The Motley Fool·2025-01-15 11:53Core Insights - Ford Motor Company is focusing on improving quality to mitigate higher warranty costs, addressing declining sales in China, and navigating the electric vehicle market [1] - The company achieved a 9% increase in fourth-quarter U.S. sales, significantly outperforming its full-year sales growth of 4% [2] Sales Performance - Ford's full-year sales reached 2.01 million vehicles, the highest since 2019, driven by a strong electric vehicle lineup and continued success of the Explorer and F-Series [2] - The F-Series remains the best-selling pickup line in the U.S. for the 48th consecutive year [2] Ford Pro Division - Ford Pro, the commercial division, generated 3.7 billion [3] - Super Duty pickup sales increased by 30% in the fourth quarter, contributing positively to Ford Pro's performance [4] - Full-size vans accounted for approximately 50% of Ford Pro's sales in 2024, marking 46 years as a leader in the commercial van segment [5] Electric Vehicle Growth - Ford's electric vehicle sales, including full-electric, hybrids, and plug-in hybrids, rose by 38% in 2024, surpassing competitors General Motors and Stellantis [7] - The company achieved a record of 30,176 full-electric vehicles sold, with the Mustang Mach-E performing particularly well [8] - Hybrid vehicle sales increased by 40% year-over-year, totaling 187,426 units sold [8] Luxury Segment - Lincoln's sales represented 10% of Ford's truck segment sales in the fourth quarter, with a 35% increase in sales during the same period [11][12] - The luxury vehicles have higher margins, contributing positively to overall profitability [11] Challenges Ahead - Ford faces challenges in quality control, which has led to increased recalls and warranty costs, and needs to address its declining market position in China [14] - Despite these challenges, the company is producing vehicles that are in demand, which is crucial for its investment thesis [15]