Ford Increases Third-Quarter Production Once Again

By Brendan Moore

08.14.2009

ford-corporate-logo-small1Ford is increasing production, and specifically, production of the Escape and Focus, once again in order to satisfy increased demand as a result of the cash for clunkers program.

Ford has increased its overall production for the rest of the year to 495,000 units, with an increase in Focus production of 6000 units, and an increase in Escape production of 3500 units.

The production increase means that Ford will produce 18% more vehicles than last year, and up 33% from the same quarter last year, a nice success story for Ford in a tough year.

Most auto manufacturers were caught unawares by the popularity of the federal cash for clunkers program, and inventory shortages of vehicles have been reported all over the United States. Ford is a little better off than most as the result of a decision to slightly increase production months ago, before the gestation of cash for clunkers, and this second increase can only help Ford in terms of vehicle availability compared to its competitors during the rest of the cash for clunkers program. Still, many Ford dealers have reported that they are completely out of Focus and Escape inventory, with a few dealers also reporting that they are out of Fusion models as well.

“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,” Mark Fields, Ford’s president of the Americas, said in a statement to reporters.

Auto analysts say that the federal program could be responsible for as many as 750,000 new-car sales among all the auto manufacturers by the time its over, and also, an unknown number of related sales that have occurred as a result of increased showroom traffic derived from cash for clunkers.

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Author: Brendan Moore

Brendan Moore is a Principal Consultant with Cedar Point Consulting , a management consulting practice based in the Washington, DC area. He also manages Autosavant Consulting, a separate practice within Cedar Point Consulting. where he advises businesses connected to the auto industry. Cedar Point Consulting can be found at http://www.cedarpointconsulting.com.

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1 Comment

  1. Ford is really the only American auto company worth saving, imo. Too bad they couldn’t have cloned Mulally for Chrysler and GM.

    Ford is going to come out ahead on this government giveaway. That’a at least a little silver lining this taxpayer boondoggle.

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