Ford and GM Just Had a Rough Quarter — Here’s Why It’s Not All Bad News

TLDR

• Ford Q1 2026 US sales fell 8.8% to 457,315 vehicles; GM dropped 9.7% to 626,429
• A tariff-driven buying surge in March 2025 created a tough year-over-year comparison
• F-Series truck sales fell 16%; Ford EV sales collapsed 70% to just 6,860 units
• Average new vehicle prices now exceed $50,000, keeping buyers on the sidelines
• Rising fuel prices from Middle East tensions could shift demand toward smaller, cheaper cars

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Ford and GM both reported weaker US sales in the first quarter of 2026. Ford sold 457,315 vehicles, down 8.8% from a year ago. GM sold 626,429 vehicles, a 9.7% decline.

Ford Motor Company, F

Both companies pointed to the same root cause: in March 2025, buyers rushed into showrooms ahead of expected auto tariffs. That pushed the industry’s sales rate to 18.4 million vehicles — the highest monthly pace since April 2021. That surge made Q1 2026 a very difficult comparison.

Severe winter weather in January and February also kept shoppers away, GM said. The company noted that March sales recovered nearly 18% from February as conditions improved.

Ford’s F-Series trucks, the best-selling vehicles in America, took the hardest hit. Sales fell 16% to 159,901 units. Ford said part of that drop was tied to production delays caused by aluminum plant fires last year.

Ford’s EV sales were down sharply too. The company sold just 6,860 electric vehicles in Q1, a 70% drop year over year. The F-150 Lightning, which has since been canceled, fell from 7,187 units to 2,060. Hybrid sales also fell 19.4% to 41,159 vehicles.

Not everything was down for Ford. Explorer sales jumped 29.7% and Expedition sales rose 30.2% — the best combined start for those two models since 2002. The Bronco Sport posted its best-ever first quarter with 35,021 vehicles sold.

Ford’s retail market share rose to 11.6%, up 0.2 percentage points from a year ago.

Affordability Remains a Problem for Both Automakers

The average price of a new vehicle in the US has climbed to nearly $50,000. Financing costs remain high. Together, these factors are keeping many buyers out of showrooms.

GM’s entry-level Chevrolet Silverado starts at $36,900 before destination fees. GM does offer six Chevrolet and Buick models under $30,000, but unlike Toyota and Hyundai, it does not have a mass-market hybrid lineup.

GM sold 25,900 EVs in Q1, a modest increase from Q4 2025. The company remains the second-largest EV seller in the US behind Tesla.

Fuel Prices Add Another Layer of Pressure

Rising fuel prices, driven in part by ongoing conflict in the Middle East, could push buyers toward smaller and more fuel-efficient vehicles. Analysts had expected a sales recovery in coming months, but that outlook is now less certain.

GM remains the US market leader in Q1 2026, outselling Toyota by more than 57,000 vehicles, with Ford in third place.

Ford said it expects uneven recovery, with more volume coming in the second half of the year.

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