October Sales Growth, Ford’s Manager Accountability, Early Black Friday
It’s a new month and we hope you’re recovering from the candy hangover! Today we’re looking back at October in retail auto and reviewing how it did, examining how Ford is linking performance to manager bonuses and seeing how Target is moving Black Friday deals earlier than ever.
Show Notes with links:
- October brought robust growth in U.S. auto sales, led by higher consumer interest in EVs and hybrids, as automakers capitalized on rising inventory and incentives.
- Hyundai and Kia set October sales records, up 16% and 18% respectively, with notable gains in electric and hybrid models, a trend seen industry-wide.
- U.S. light-vehicle sales are expected to climb up to 11% from last October, with retail demand offsetting declines in fleet sales, say industry analysts.
- The industry’s annualized sales rate is projected to hover between 15.8 and 16.1 million, sustaining the strong September pace.
- New-vehicle inventories are up 25%, though still below pre-pandemic levels, creating a mix of high turnover for brands like Toyota and large stockpiles at others.
- Rising inventories are pushing incentives higher, averaging $3,149 per vehicle—a 71% increase over last year—with EVs seeing the largest discounts.
- Ford CEO Jim Farley is driving a new culture of accountability by linking manager bonuses to key goals in quality and cost-cutting—and reducing bonuses to 65% of the total potential this year.
- Ford’s recent earnings met only the low end of expectations, causing shares to drop over 10% earlier this week.
- In a recent town hall, he stressed the urgency of the new performance-based bonus system to push for faster improvements in quality, saying current progress isn’t enough.
- “We now truly differentiate and reward excellence at Ford,” Farley said, describing the shift as a “massive culture change.”
- This move aligns Ford with broader trends, as GM also updated its bonus structure this year, now offering top performers 150% of their potential bonus.
- Target is launching its Black Friday deals earlier than ever, offering shoppers a jumpstart on savings with multiple ways to snag the best prices this season.
- The three-day Early Black Friday Sale runs from Nov. 7-9, giving shoppers early access to top discounts.
- Target’s Holiday Price Match Guarantee ensures shoppers get the best deal, with price matching on items that drop in price through Dec. 24.
- Daily deals start Nov. 1, and each week’s discounts include up to 50% off items like floorcare and toys, exclusively for Target Circle members.
- “We’re kicking off the holidays in a way only Target can,” said Rick Gomez, EVP at Target, promising a season of exclusive products, fun, and unbeatable prices.
Hosts: Paul J Daly and Kyle Mountsier
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