Ford and General Motors reported commercial fleet sales growth during the third quarter, as fleet sales remained strong across most sectors.
Ford Pro, the commercial fleet division of Ford, saw Q3 revenue of $17.4 billion, up 10.8% year over year, according to Ford’s Oct. 23 earnings release. Ford Pro’s Q3 wholesale sales landed at 373,000 units, up 9.1% YoY, according to the release.
Strong sales across commercial models, lower costs and growing service-based revenue approaching 20% of EBIT contributed to higher market share and profitability, Andrew Frick, former interim president of Ford Pro, as well as president of Ford Blue and Ford Model e, said during the company’s Oct. 23 earnings call.
“We’re roughly one-third of our channel mix now amongst large corporations, one-third with small, medium businesses and one-third with government and daily rental,” he said. “We are very well-balanced, very diversified, both on the vehicle side and also with the services.”
Ford expanded its U.S. dealer and service capabilities by adding 1,700 service bays and 500 mobile vans, Frick said. The company’s Ford Pro division also grew its software subscriptions 8% sequentially and approximately 30% annually to 818,000, supported by a ServiceTitan partnership announced Sept. 9 that integrates real-time vehicle data for streamlined fleet management.
In addition, Alicia Boler Davis assumed her previously announced role of Ford Pro president on Oct. 1, a key step in strengthening the division, with Davis debuting on the fourth-quarter earnings call, Ford CEO Jim Farley said during the Q3 earnings call.
GM commercial fleet sales dip
Meanwhile, General Motors’ commercial fleet sales rose 8.5% YoY to 254,000 units in Q3, according to its Oct. 21 10-Q filing with the SEC. GM North America commercial fleet sales totaled 148,000 units in Q3, up 16.5% YoY, while the company’s overall fleet sales as a percentage of total vehicle sales landed at 16.3%, up compared with 15.9% in Q3 2024.
GM Financial’s commercial receivables fell 10.8% YoY to $16.7 billion, according to the release, and the lender increased its allowance for commercial loan losses to $85 million in Q3, up 57.4% YoY. Commercial dealer financing receivables declined 9% to $16.2 billion.
While GM had commercial fleet growth, the commercial EV market hit a snag, resulting in the company ceasing production of its BrightDrop electric vans, Chief Executive Mary Barra said during the company’s Oct. 21 earnings call.
“The commercial electric van market has been developing much slower than expected, and changes to the regulatory framework and fleet incentives have made the business even more challenging,” she said. “Our actions on BrightDrop and our ongoing work to reset our capacity will cause us to recognize a charge in the fourth quarter.”
Market reaction
Shares of Ford Motor Co. [NYSE: F] were up 12.16% or $1.50 from market open to $13.84 as of market close today. The company has a market cap of $49.11 billion.
Shares of General Motors Co. [NYSE: GM] were up 4.20% or $2.81 from market open to $69.66 as of market close today. It has a market cap of $62.67 billion.
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