| |
Ford Slashes '07 Production
By Jason Moore
Ford Motor Co. is expected to build fewer vehicles in its 2007 lineup. This is due to its reduction of sales to rental companies. Further, analysts in the automotive industry are anticipating that Ford fanatics will be making fewer orders in the coming years.
According to the automaker, it will slash its production of new vehicles in North America. As announced, Ford's car and truck production will be reduced by 8 to 12 percent. These sweeping reductions will take effect in the first half of 2007. Nonetheless, Ford will increase its production by 5 to 10 percent in the 2nd half of said year.
This year, Ford made a striking 21 percent cut on production in the first quarter. The reduction eventually triggered temporary plant layoffs in several Ford plants. The automaker's spokesman did not release any additional forecasts about the matter. Suris stated that Ford is not making an official announcement of its production forecast. The latter can be used to track down sales
Nevertheless, analysts are saying that the rebound production on the second half of 2007 might be deceiving. David Healy, an automotive analyst with Burnham Securities, predicts that the automaker will cut its North America production by 9% in 2007. He also noted that the rebound anticipated on the second half of the year is "a misleading improvement" because of the ongoing production cuts this year.
Healy also anticipates that a huge slice of production cut would be for models like Taurus and Freestyle. These vehicles are significantly sold to rental car companies. Healy also added that it is necessary for Ford to make timely production cut due to the chaos in the retail market. This includes sales at dealership and not to discounted fleet sales to rental companies and government as well.
Taurus is a midsize front wheel drive car introduced in December 1985 as the replacement of Fairmont-based rear wheel drive LTD model. The excellence of Ford Taurus car parts has astounded the industry for several decades now. As a fact, in over 20 years of production, Ford has sold about 7 million Taurus units. Ford Freestyle, on one hand, is a crossover SUV or station wagon that was introduced for the 2005 lineup. It is designed to compete with midsize vehicles like Honda Pilot, Toyota Highlander, Mitsubishi Endeavor and Nissan Murano.
"The company is bottoming out now and will continue at a low market share for the full year," Healy concluded.
About the Author
Jason Moore, a 35 year old freelance writer from Austin, Texas. He also works as a marketing analyst for an established auto parts store in the country.
Article Source: http://www.simplysearch4it.com/article/41544.html
| If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/41544.html" as shown above and make it hyperlinked. |
| Some other articles by Jason Moore | Ford Sells Michigan, Mexico Plants
Ford Motor Co. announced that it has entered into agreements with two companies to sell Michigan and Mexico auto parts plants.
The companies are Flex-N-Gate Corp. and Cooper-Standard Automotive ...
The Myths Of Driving Drunk
Our world has been bombarded with myths and with legends. Some myths have their own scientific bases however most of them are purely concocted out of the scared and fearing minds of people. And when it ...
BMW Convertible Unveiled This Detroit Auto Show
Vehicles which have been in the industry for years do not simply just stay the way they have been built since their inception. In fact, most of these vehicles get a little changing with various parts. ...
Ford's New Concept Vehicle For 2007
The Ford Motor Company, despite having had to go through financial trouble, is still trying to bring the auto world vehicles that may not be production vehicles but could still ...
Job Cuts at Kentucky Explorer plant
As what auto reports reflect, Ford Motor Co., second-largest U.S. automaker, is certainly facing a decline in SUV sales. In connection to this plight, Ford plans to slash the production of Explorer SUV at the ...
Know About Traffic Thru Your Mobile
In a world where everything can be easily accessed with just a couple of touches, many businesses do try to make sure that they ...
|
|
| |
|
|
|
