Ford out sold General Motors in February, but there’s an aspect of “lies, damned lies, and statistics” to this milestone. That’s no reflection on Ford, which didn’t go out of its way to contort the numbers or call attention to its achievement, even though it was the first time in decades that Ford outsold GM. The short version is that Ford didn’t pass GM unless you include Volvo Cars in Ford’s total, and Ford is in the process of selling Volvo to Chinese automaker Geely. Another asterisk is that Ford fleet sales were way up, but so were GM’s. Both companies are still making up for fleet sales that were curtailed a year ago. Not only that, Ford would have passed GM by an even bigger margin if you throw out the brands GM is getting rid of : Hummer, Pontiac, Saab and Saturn.
So Ford’s February achievement passes the smell test. But is it a one-off, or the start of a trend?
For now, I think it’s closer to a one-off. I don’t think Ford will continue to outsell GM month-in and month-out. But I also think it’s possible it will in the long run unless GM truly starts hitting on all cylinders. The February sales numbers show that Ford has momentum.
Meanwhile, GM is trying to re-launch itself as a public company, after going into and out of bankruptcy last year. At the same time, GM is trying to keep existing customers and recruit new ones, while getting rid of four brands.
In public, Ford officials are quiet about the milestone. If they’re celebrating, they’re doing it somewhere with the shades drawn. They would probably be more outspoken, if they were confident it would be repeated regularly.
Ford sales analyst George Pipas was interviewed on TV this week about passing GM. He made a show of reaching into his pocket and taking out his “One Ford” business card. On it are the goals set forth by Ford President and CEO Alan Mulally, such as, “Accelerate development of new products our customers want and value.” Passing GM isn’t on the list, Pipas noted.
Worldwide, there’s no way Ford can pass GM any time soon. GM production was 6.5 million worldwide in 2009, versus 4.7 million for Ford.
Toyota (TM) serves as a cautionary tale. Toyota’s karma has suffered since the Japanese automaker passed GM in 2007 to become the biggest auto company in the world. The perception is that in the race to become No. 1, Toyota took its eye off the ball on quality and now is paying the price.
