In an effort not bury their dealerships with inventory, GM and Ford are going to make major cuts in their first quarter 2008 productions forecasts. GM will cut production by 11 percent while Ford is forecasting a 7.4 percent cut.
GM said that it will be producing 950,000 units during the first quarter in North America, a reduction of 113,000 cars from the same period in 2007. Ford on the other hand plans to produce 685,000 vehicles in North America, down 55,000 units from the first quarter of 2007.
“Clearly with the economy and the subprime credit and housing being down, we continue to watch that very carefully as we move into 2008,” Ford CEO, Alan Mulally said. “Of course, the most important thing we can do is adjust our production to the real demand, which we”ve done very carefully and very decisively during this last year.”
Finally, Detroit isn’t all about moving numbers and more concerned with quality and efficiency.
Source: Automotive News (Subscription Required)
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