FoMoCo announced today that it will cut North American production by 15 percent in the second quarter by 20,000 units to 690,000 vehicles. In the third quarter, Ford expects to build between 510,000 to 540,000 units, down 15 to 20 percent from the same period last year. Fourth quarter production is forecasted to be between 590,000 to 630,000, down 8 percent.
“The challenge affecting the entire industry is the accelerating shift in consumer demand away from large trucks and SUVs to smaller cars and crossovers — combined with a steep rise in commodity prices and the weak U.S. economy,” said CEO Alan Mulally.
Ford said it will shift its focus to higher cars and crossover production in the second half of 2008. Vehicles that will see a boost in production will include the Ford Fusion, Edge, Escape and Focus. Mercury’s Milan and Mariner will also see an increase along with the Lincoln MKZ and MKX.
Pickups and SUVs have taken a large hit and Ford Says that “substantially higher commodity costs” and changes in consumer buying patterns are hurting the company’s its financial outlook.
Source: Automotive News (Subscription Required)
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