Ford’s sales fall short

Ford Motor Co.'s November U.S. retail sales fell below the company's own forecast, according to its latest internal report card, which was distributed to employees late Wednesday.

The worse-than-expected U.S. sales underscore the challenge posed by a weakening economy and declining demand for cars and trucks to the Dearborn automaker's North American turnaround plan.

However, the document — a copy of which was obtained by The Detroit News — does show that the company is meeting its material cost-reduction goals, which had been a challenge for Ford in light of rising raw materials costs and widening problems with U.S. suppliers.

According to the latest report card, Ford's share of the U.S. retail market dropped to just 12.4 percent in November — well below the 13 percent goal the company has set for itself, and a significant decline over the previous month.

Ford blamed the slump on a quickening shift in consumer demand toward smaller, more fuel-efficient vehicles.

"November industry sales shifted to cars and crossovers. SUV and pickup truck sales weakened. The shift was greater than expected," Ford said in the document, which was released to employees late Wednesday. "Consumers reacted to concerns about fuel prices and the economy. Ford has relatively lower segment market share on cars than trucks. As a result, an industry shift toward cars results in a lower total share for Ford."

But this shift is nothing new. Ford has already blamed the failure of its first Way Forward plan in 2006 on a faster-than-expected shift away from the big trucks and SUVs that had been the foundation of Ford's portfolio. More at Detroit News