Ford Cuts Production at Several Assembly Plants
18 October 2016 - 11:28AM
Dow Jones News
By Christina Rogers
Ford Motor Co. plans to trim F-150 truck production and idle
several other assembly plants in North America this month, aiming
to whittle down unsold-car inventory amid a slowdown in U.S.
light-vehicle sales.
The No. 2 U.S. car maker will suspend production for a week at
an assembly plant in Kansas City, Mo., where it builds its
full-size F-150 pickup, the company's top seller and biggest
moneymaker. Ford will also shut down a crossover factory in
Louisville, Ky. for two weeks in October and idle output for a week
at two plants in Mexico producing sedans and small cars.
The move comes as the once-booming U.S. car market begins to
cool after six years of steady growth and record auto-industry
sales in 2015. Ford executives have warned softening new-car demand
and intensifying price competition could dent profits in the back
half of the year.
Ford's U.S. sales fell 8% in September as the broader new-car
market sputtered, despite generous Labor Day deals and deeper
discounts during the month. Ford's light-duty truck inventory stood
at a 93 days' supply at the month's end, well above the level
considered healthy by the industry, according to WardsAuto.com.
"During our second quarter financial call, we said we expected
the overall retail industry to decline in the second half of the
year from the same period last year," Ford said in a statement. "We
continue to match production to meet demand."
Write to Christina Rogers at christina.rogers@wsj.com
(END) Dow Jones Newswires
October 17, 2016 20:13 ET (00:13 GMT)
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