Ford says Jan sales up 10% or more on fleet gain

Ford Motor Co. said its U.S. sales rose at least 10 percent in January as optimism about the economy spurred business customers to boost vehicle purchases.

Deliveries to so-called fleet buyers jumped by more than 50 percent from a year earlier, helping offset a drop of 1 percent to 2 percent among individuals, George Pipas, the company's sales analyst, said today. Total sales increased by a double-digit percentage, he said, without giving a figure.

Improving demand among commercial customers adds to evidence that automakers are shaking off their worst sales slump since 1982. While discounts for bulk purchases make those sales less profitable than those to retail buyers, an economic rebound would herald a recovery for the entire U.S. auto market.

"There's no question the worst is behind us and we are in a period of expansion," Pipas told reporters at Ford headquarters in Dearborn, Michigan. "But it is not likely to be linear."

The decline in so-called retail purchases by individual buyers this month was the result of automakers' year-end sales and consumers in December taking advantage of tax deductions for 2009 on new vehicles, he said.

"There's likely some payback in January," Pipas said.

The company's $1,000 rebate offer for owners of Toyota Motor Corp. vehicles won't boost Ford's costs, Pipas said. The effect of Toyota's recall and sales freeze on eight U.S. models is "hardly visible" in January sales results, he said.

Targeting Toyota Owners

Ford isn't able to tell yet whether its marketing campaign will attract many Toyota owners, Pipas said. On average, Ford dealers get about 6 percent of their trade-in vehicles from Toyota owners, he said. The U.S. automaker is providing its dealers with "millions" of dollars in added advertising money, the sales analyst said.

"Consumers might just say, 'For the next few weeks I'm just going to sit tight,'" Pipas said. "You're not going to pay out that money unless somebody switches."

Ford fell 57 cents, or 5 percent, to $10.84 at 4:03 p.m. in New York Stock Exchange composite trading. The shares are up 8.4 percent this year after rising more than fourfold in 2009.