Ford Motor ‘s December and fourth-quarter sales impressed. Especially given the supply-chain woes faced by the entire industry. Investors have rewarded the company for managing the semiconductor shortage well in the latter part of 2021.
Ford (ticker: F) delivered 173,740 vehicles in the U.S. in December and about 508,000 vehicles in the fourth quarter. December sales dropped 17% year over year, but fourth-quarter sales dipped less than 10% from the year-ago quarter.
Ford stock was up 1.2% in midday trading. Shares are up about 18% for the first three trading days of 2022—that’s a strong start to the year. The S&P 500 fell 0.2% and the Dow Jones Industrial Average was up 0.2%.
Benchmark analyst Mike Ward pointed out in a report Wednesday that Ford’s production in December hit 10,569 per day, about 98% of Ford’s production plan and the highest level since February 2020. Ward also pointed out that Ford’s dealer inventories ended the year at 247,100 units. That’s the highest level since April, but still down 42% year over year. Low dealer inventories have constrained sales, but led to much higher vehicle pricing.
Ford’s stock is up, in part, because delivery results compare well to the rest of the industry. General Motors ‘ (GM) U.S. fourth-quarter deliveries dipped 43% to 440,750 vehicles.
GM’s full-year sales drop, however, was about 13%. GM delivered about 2.2 million vehicles in the U.S. this past year. Ford, for all of 2021, delivered about 1.9 million vehicles in the U.S., about 7% fewer cars than 2020.
Ford’s drop was less than GM’s, but the timing of shipments makes the full-year comparison look better for GM. It, essentially, shipped more of its 2021 volume early in the year and less later in the year. GM sales actually increased 20% in the first half of 2021. Ford sales rose 5% in the first six months of 2020.
Relative to Ford, GM has gotten less credit for its stronger first half, and has been punished more for its weaker second half. GM stock rose about 42% in the first six months of 2021 while Ford stock gained 69%, but GM shares dipped about 1% in the second half of the year while Ford shares added another 40%.
Deliveries, of course, aren’t the only thing that impact car stocks. The Chevy Bolt EV recall weighed on GM stock as well. And Ford is about to deliver its all-electric F-150 pickup truck, a vehicle investors have high hopes for.
Write to Al Root at allen.root@dowjones.com
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