Ford Motor Co. started 2025 with U.S. sales down 6.3% in January compared to the same month a year ago, though sales of hybrid and electric vehicles rose year-over-year.

The first month of the year typically is a slower sales month. Bills from the holidays hit, colder and snowier weather settled in, wildfires ravaged southern California and a new president was inaugurated. Even still, auto retail services company Cox Automotive Inc. was forecasting a 5.2% increase in U.S. new vehicle sales for the industry compared to January 2024.

Affordability is a major challenge for automakers this year as they seek to maintain strong pricing and customers face high interest rates. Although Ford secured its best sales year in 2024 since pre-COVID 2019, it's increased inventories in preparations for launches of the new Expedition and Navigator. But almost three-quarters — 73% — of the Dearborn automaker's inventory was still model-year 2024 at the start of the year, according to auto information website Edmunds.com Inc. The industry's overall rate was 34%. Plus, Ford is battling a reputation it's developed around quality issues and is seeking to decrease warranty costs.

"The quality journey for Ford over the last couple years has been a really rewarding, but challenging one," Ford CEO Jim Farley said last month at the Detroit Auto Show. "At the same time, last year, our recall notices went down 20%. ... But we're focused on much more than recalls. We're focused on short-term, three months in service and long-term powertrain durability."

General Motors Co. and Stellantis NV don't report monthly U.S. sales but will report them for the quarter in April.

Sales of gas- and diesel-powered vehicles that represent 87% of Ford's business dropped 9.4% with SUVs down 16% in January. The Bronco Sport that was refreshed last year fell 4.6%, Escape dropped 9.1%, the Explorer, also refreshed last year, declined 28% and the Expedition, whose fifth generation is launching for 2025, was off by 16%.

Bronco, however, increased 22% after Ford boosted production last year. The Mustang Mach-E also was a high note, with sales up 173%. Ford extended its Power Promise commitment through March to cover the cost of an EV charger and its standard installation, helping EV sales to increase 21% in January.

But F-150 Lightning trucks still dropped 3.4%. The plant in Dearborn that assembles the pickups idled for the final weeks of the year starting in mid-November as Ford sought to protect profitability, since it loses money on the all-electric trucks. The Blue Oval reports 2024 financial results on Wednesday after the bell.

Trucks overall were up 3.4% with all F-150s increasing 20%. Ranger midsize sales were up almost 14 times a year ago as January 2024 inventory still was recovering from the United Auto Workers' 41-day strike at the plant in the fall of 2023. Sales of the compact Maverick, which got a refresh last year, fell 30%, and Transit commercial vans were off by 46%, including an 80% drop for E-Transit electric models.

Mustang coupes fell 36% year-over-year.

At the Lincoln luxury brand, sales fell 7.4%. The China-built Nautilus was the only vehicle to see an increase — of 19%. Corsair, Aviator and Navigator were all of by double-digit percentages compared to a year ago.

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