Cash for Clunkers causes inventory shortage for Ford Escape, FoMoCo to boost production

Much like the effects felt by Chrysler, FoMoCo is feeling a shortage in inventory of the Escape crossover, which is in short supply after the cash-for-clunkers surge. A tentative plan is in place to boost production of the Escape, by reassigning some workers from the Dearborn, Mich. plant that produces the F-150 pickup, to the plant in Kansas City that assembles the Escape, Mercury Mariner, and Mazda Tribute. The lag in production of F-150’s in Kansas City would be addressed by an increase in their production in Dearborn, giving workers steady full-time hours and ending rotating layoffs at the plant.

According to Nick Kottalis, chairman of the Dearborn truck unit for UAW Local 600, Ford hopes to institute the new plan sometime between Sept. 1 and Oct. 15. the Dearborn plant currently employs 2,400 workers on an hourly basis, reports Automotive News.

In an industry where a 60-day supply of vehicle inventory is considered the benchmark, Ford finds themselves now with a 21-day supply of the Escape.

Demand for the Escape is continued to remain strong as the Senate is expected to approve a $2 billion dollar extension to the cash-for-clunkers program, and supply is expected to shrink further in light of an impending one week plant closing.

– By: Stephen Calogera