Ford Expects Auto Industry Sales Pace to Continue

DETROIT — Ford Motor Co.'s sales analyst said the U.S. auto industry will continue its current pace and finish May on track for an annual sales rate of slightly more than 11 million new cars and trucks, The Wall Street Journal reported.

April sales finished at an annual rate of 11.2 million vehicles, and industry analyst Edmunds.com has forecast a May rate of 11.4 million.

The market will continue its modest recovery in the United States, Ford's George Pipas said. Pipas said he has yet to see any economic movements that would cause an unexpected sales jump.

"May is a what-you-see-is-what-you-get month," Pipas said. "This is where the consumer is."

He also said auto makers continue to hold off on incentives as they focus on profitability rather than quickly increasing market share. The forecast came on the same day that Ford CEO Alan Mulally sidestepped questions about the auto maker's plans to kill its slumping Mercury brand.

Mulally and his executives are preparing to ask the automaker's board in July to drop the Mercury brand, according to a person familiar with the discussions. Mulally reportedly has the backing of key Ford family members.

Ford executives have publicly supported the brand since 2006, when Mulally joined the auto maker. Mercury, executives had said, was a brand that appealed to women. Behind the scenes, however, the brand received few new models. Many dealers also support bringing Mercury to an end.

Separately, Ford said it continues to work on consolidating its dealer network. Mulally hasn't disclosed the target size other than saying his goal is to maker dealers more profitable overall. The focus continues to be on closing some of the weaker dealers in cities where there is a shrinking consumer base. The auto maker had 3,553 Ford, Lincoln and Mercury dealers at the end of 2009.

General Motors Co. and Chrysler Group LLC irked dealers last year during their bankruptcies when they presented plans to consolidate their networks. Chrysler cut new-vehicle deliveries to 789 dealerships. About 150 are fighting the move in arbitration hearings.