Ford Motor Plans To Trim Second-Quarter Production By 38%
03 März 2009 - 7:04PM
Dow Jones News
Ford Motor Co. (F) plans to trim its second-quarter production
by 38% in another sign that the U.S. recession is deepening.
The auto maker plans to produce 425,000 vehicles, compared with
685,000 for the same period in 2008, the Dearborn, Mich.-based
company said in a statement on Tuesday. The company expects to
build 135,000 cars and 290,000 trucks during the quarter.
Ford disclosed last week it was cutting its first-quarter output
by 25,000 vehicles to 375,000 vehicles. It also estimates total
sales to fall as low as 10.5 million units for the year.
"A key element of our strategy to build our reputation and
improve resale values is to align our production with consumer
demand," said Ken Czubay, Ford's vice president of sales and
marketing. "Our disciplined approach to the market in these
challenging times helps us to minimize costly incentives which
erode brand value."
Ford said in mid-2008 it would reduce output rather than
stockpiling unsold cars and trucks, intensifying pressure on
dealers and eroding residual values.
Toyota Motor Corp. (TM) has told its suppliers it expects its
worldwide production to drop about 12% during the next fiscal year
to its lowest level in seven years. The company projects
manufacturing about 6.2 million vehicles in the fiscal year
starting April 1, compared with an estimated 7.08 million this
business year, The Wall Street Journal reported Tuesday.
Ford shares fell 2.1% to $1.84 in earlier trading Tuesday.
-By Jeff Bennett, Dow Jones Newswires; (248) 204-5542;
jeff.bennett@dowjones.com