"Clunkers" Demand Prods Ford To Hike Production
August 13, 2009
Trying to insure it doesn't run dry of two of the best-selling new vehicles in the still-humming Cash for Clunkers rebate program, Ford Motor Co. confirmed today a modest production increase for the third quarter, from 485,000 units to 495,000 units.
Ford's 2 percent production hike over its previous plan will come from extra shifts and more overtime at the Kansas City, MO, plant that produces the Escape compact crossover and the Wayne, MI, factory that assembles the Focus compact.
Data from Edmunds.com indicates the Focus and the Escape ranked as the No.1 and No.2 new vehicles bought to replace "clunkers" in the government-funded Car Allowance Rebate System (CARS) incentive program that runs through the end of this month.
"Under the 'Cash for Clunkers' program, the Ford Escape and Focus are flying off dealer lots, and we're doing all we can to ensure our dealers are well stocked with the fuel-efficient vehicles that customers really want," said Mark Fields, Ford's president of The Americas, in a statement.
Ford said it plans to build approximately 6,500 additional Focus cars and 3,500 more Escapes than originally scheduled.
Dealers around the country have run low on stocks of the most-demanded new vehicles bought with the CARS rebates of either $3,500 or $4,500. Passenger cars with comparatively high fuel economy comprise eight of the top 10 most popular CARS-driven new-vehicle purchases as consumers seek the greatest increase in fuel economy in order to maximize their clunkers' rebate.
Ford says the production hike in this quarter exceeds 3Q 2008 levels by 18 percent. And Ford also said planned production of 570,000 units in the fourth quarter will represent a jump of 15 percent compared to 3Q levels and a 33 percent boost over like-2008 production. In the fourth quarter, Ford is launching its heavily revised new Taurus sedan and the new Lincoln MKT full-size crossover.
Detroit rival General Motors Co. has insinuated it also will increase production of some models and Chrysler Group LLC reportedly added some production of its Dodge Ram pickup and Jeep Wrangler to address waning inventories. Bloomberg reported that Chrysler inventories had sunk to a 40-day supply at the end of July, well below the 60 days considered the industry's ideal. -- Bill Visnic
Photos courtesy Ford Motor Co.
1. 2010 Ford Focus
2. Ford Escape at Kansas City, Missouri, assembly plant.
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