Ford cuts second-half production by 50,000 units
Sales collapsed in August with no post-Labor Day pickup seen
By Tom Stundza -- Purchasing, 9/3/2008 1:57:00 PM
Supplier hopes of renewed buying by automakers of steel, nonferrous metals, chemicals, plastics and textiles in the second half were dashed today when Ford Motor announced second-half production cutbacks of 5% and projected industrywide sales around 14 million units, a 14% decline from 2007 sales.
Sales of Ford's trucks and more fuel-efficient cars plunged in August far worse than forecast so year-to-date sales for the Dearborn, Mich., firm have fallen 16%. Jim Farley, group vice president of marketing and communications, says in the sales report that the automaker doesn't see any signs of a quick turnaround. “We expect the second half of 2008 will be more challenging than the first half, as weak economic conditions and the consumer credit crunch continues,” he says.
A report on CNNMoney.com says that Ford has trimmed its forecast for full-year industrywide sales in the U.S. to the low end of its previously announced range of 14 million to 14.5 million. Auto experts are predicting that this will be the worst August for auto sales in 15 years. In response to the weak sales and outlook, Ford announced Wednesday that it would cut second-half production plans by about 5%, trimming 20,000 vehicles in the third quarter and 30,000 vehicles in the fourth quarter
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