Ford Report Shows The US Auto Market’s In Trouble

2017 Ford Explorer XLT Sport Appearance Package

New car sales in the United States have been thumping lately. Plenty of automakers have been racking up records left and right (although FCA’s may or may not have been real). And thanks to a new report from Ford, everyone is now thinking the good times have come to an end.

Automotive News and The Wall Street Journal both highlighted Ford’s reportedly lower profit margins for Q2 of 2016. Not that long ago, the automaker was chest thumping about how big and fat its profit margins were, so this has everyone in the industry pretty shook up.

Basically what it comes down to is people in the United States can’t just keep scooping up cars like crazy. Many held off because of the recession, until they finally got sick of driving a Fusion with electrical tape holding the turn signal together and a hole forming in the carpeting around the brake pedal, and finally bought a new Fusion or maybe even an Explorer.

With demand dropping, Ford’s spending more on vehicle incentives, and the competition probably is as well. The Chinese market has softened too, and Bexit is putting the squeeze on in Europe.

Does this mean the sky’s falling? No, but it does mean car dealers are going to be playing things more conservatively, especially Ford, Nissan and FCA. Just how much demand will fall is pretty much anyone’s guess at this point.