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Ford to make less vehicles in 2008: more cars, fewer trucks
Filed under: Plants/Manufacturing, Ford, Earnings/Financials
Ford issued a press release this morning detailing its plans for the remainder of 2008, and considering the current price of gasoline, weak U.S. economy and rising cost of raw materials, the changes are exactly what you'd expect. Ford will now be producing 690,000 vehicles during the remainder of this year's second quarter, down 20,000 units from its previous estimate and 15% below its total for Q2 2007. Production levels in Q3 will fall to between 510-540,000 units in Q3 2008 (down 15-20% from Q3 2007) and between 590-630,000 units in Q4 2008 (down 2-8% from Q4 2007).
Though it will be producing fewer units overall, Ford will increase production of hot-selling cars and CUVs like the Focus, Edge and Escape, Mercury Milan and Mariner, and Lincoln MKZ and MKX. Production of trucks and SUVs, however, will drop sharply because potential customers are walking away from these relative gas-guzzlers in droves. Since those models typically earned big profits for Ford, the Blue Oval revised the timeline for its turnaround plan and now expects to break even overall in 2009, though it will probably take longer than that now for its North American operations to contribute any black ink to the ledger.
[Source: Ford]Continue reading Ford to make less vehicles in 2008: more cars, fewer trucks
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Ford issued a press release this morning detailing its plans for the remainder of 2008, and considering the current price of gasoline, weak U.S. economy and rising cost of raw materials, the changes are exactly what you'd expect. Ford will now be producing 690,000 vehicles during the remainder of this year's second quarter, down 20,000 units from its previous estimate and 15% below its total for Q2 2007. Production levels in Q3 will fall to between 510-540,000 units in Q3 2008 (down 15-20% from Q3 2007) and between 590-630,000 units in Q4 2008 (down 2-8% from Q4 2007). Though it will be producing fewer units overall, Ford will increase production of hot-selling cars and CUVs like the Focus, Edge and Escape, Mercury Milan and Mariner, and Lincoln MKZ and MKX. Production of trucks and SUVs, however, will drop sharply because potential customers are walking away from these relative gas-guzzlers in droves. Since those models typically earned big profits for Ford, the Blue Oval revised the timeline for its turnaround plan and now expects to break even overall in 2009, though it will probably take longer than that now for its North American operations to contribute any black ink to the ledger.
[Source: Ford]Continue reading Ford to make less vehicles in 2008: more cars, fewer trucks
Permalink | Email this | Comments
More...