Ford Short Interest Rises

Source: Ford Motor Co.

Shares sold short in Ford (NYSE: F) rose 4.5 million to 96.5 million in the period which ended July 15. That put it among the ten most shorted stocks in the NYSE.

Ford’s shares are off almost 10% over the last three months, hobbled by an array of problems which include the anxiety regarding China, the world’s largest car market. This worry has dogged every large manufacturer in the world.

UAW negotiations have begun. American cars companies have not had contentious negotiations with the union since The Big Three were nearly driven out of business by high expenses and the recession. While labor strikes are unlikely, that are part of the auto industry’s history which is decades old.

Investors in Ford’s shares have also had to carry the burden of lackluster U.S. sales. Through the first half of the year, Ford sales have risen a very modest 1.8% to 1,288,319. The manufacturer’s market share has fallen from 15.5% in the first six months of 2014 to 15.1%. Toyota (NYSE: TM) is close to overtaking Ford for the No.2 position in the American market. Its sales over the first six months were 1,231,440, up 5.6%. Toyota’s market share has risen from 14.3% to 14.5% for the same time-frame.

Total U.S light vehicle sales for the first six month of the year are higher by 4.4% to 8,521,260

The source of weak sales for Ford is that its three best-selling vehicles have done poorly in the first half. Most important among these is the F-Series, which has been the top-selling light vehicle in America for decades. Sales of the F-Series have fallen 2.4% over the six months to 357,180. Ford management says the next generation of the pick-up will rekindle its growth.

Sales of the Ford Fusion are down 7.5% in the first half to 153,158. Sales of the Ford Escape are off 4.2% to 146,416. It is difficult for a car company’s sales to shine when it is handicapped by this kind of problem.

Ford’s earnings are on the way. Shorts get to see if their sentiment is correct.