Ford Sales Plummet 39 Percent

Automotive News [sub] reports that US-market sales of Ford, Lincoln and Mercury-branded vehicles fell 39 percent in January, to 90,131. “Retail demand appears to have stabilized,” Ford sales analyst George Pipas told AN before those numbers were announced “Regrettably, but understandably, it stabilized at a low rate. But before you can begin to improve, things have to bottom out.” And have they ever. Ford’s press release is a roiling sea of not good, with Volvo down 64 percent, Mercury down 44 percent, Lincoln Down 23.7 percent and the Ford brand 39.5 percent versus January 2008. Fusion was the only significant seller that dropped less than 20 percent (Volvo V50 was down only 16.6 percent with a big 136 models sold, and the Towncar is up 147 percent at 510 units sold).

So instead of becoming the last known survivor stalking its prey in the night and watching bailout proceedings with the eye of the tiger, Ford is preparing to ride this bad news straight to the handout line. Ford executives announced to Automotive News [sub] that the firm expects “robust” additional funding for a program of low-interest government loans to help automakers and suppliers retool for more fuel-efficient vehicles. Beyond the $25b already appropriated, of course. Specifically, Ford is gunning for $11b worth of these so-called Section 136 loans, implying that the Obama administration should double down on the program “because President Barack Obama likes it and some congressional Democratic leaders are enthusiastic about it,” according to Ford VP for Government Affairs, Bruce Andrews.

And Ford will even make it worth the O-Man’s political capital, vowing to “work together” with state and federal officials to create a coherent national standard on fuel efficiency and tailpipe emissions. After all, the “bailout bucks used to sue states” story aint helping Detroit’s underdog turnaround narrative any. If Ford is going to get in line for more (non-136 loans) bailout money (and if February isn’t an improvement, expect it), they want to keep whatever bits of moral highground seperates them from the PR hell currently occupied by GM and Chrysler. And who can blame them?