Will the massive number of flooded cars from Hurricane Harvey and Irma help soak up the backlog of Ford Motor $F unpopular models that aren’t selling? Ford is cutting production at five North American assembly plants to reduce inventory.
Will the massive number of flooded cars from Hurricane Harvey and Irma help soak up the backlog of Ford Motor $F unpopular models that aren’t selling? Ford is cutting production at five North American assembly plants to reduce inventory. Ford will idle three assembly plants in the U.S. and two in Mexico for 10 weeks.
The affected plants build a number of models inclusing the unpopular Ford Fusion and Lincoln MKZ midsize sedans, the Ford Focus compact car, the Ford Fiesta subcompact and the Ford Transit van.
With an estimated 500,000 cars flooded in Texas alone the used car market has seen prices rise with limited supply. This unexpected spike in demand out of necessity gives an opportunity for Ford to unload it’s glut and stratigize it’s production going forward.
“We are continuing to match production with customer demand, as we always do, and we are on track for our dealer inventories to remain at planned levels by year-end,” Ford said in a statement
Image: Ford Assembly Line Back when models were popular
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It has been reported that the temporary shutdowns affect factories that employ more than 15,000 people. Ford is yet to announce their plans to timing and layoffs.
Ford CEO Jim Hackett on Oct. 3 will provide a strategic update to analysts and investors on his plans to accelerate development of emerging technologies at the company. Ford like the other big automakers are trying to adjust as consumers favor SUVs and pickup trucks over passenger cars with lower gasoline prices. Kelley Blue Book shows sales of subcompact cars are now down 22% through August for 2017, midsize cars are down 17%, and full-size cars are down 15%.
Ford’s new-vehicle sales have fallen 4% so far this year through August to around 1.7 million vehicles.