Expedition supply?
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Expedition supply?
In light of the gas crunch, does Ford ramp down production on certain vehicles like Expedition? Or once they have their target build counts for the model year do they build them all no matter what? Are the parts already bought or can they ramp down the entire supply chain in mid-year?
I am just trying to undersatand what possible ways Ford can react to the lag in interest and sales of Expeditions... if they ramp down production there may not be as many sitting on lots and rebates might not climb as high... but if they can't ramp down production, and there will be tons of them on lots not selling, could we be in for some deeper rebates to move them?
Not looking for speculation on rebates... just an education on what options Ford has on the production line...
Jeff
I am just trying to undersatand what possible ways Ford can react to the lag in interest and sales of Expeditions... if they ramp down production there may not be as many sitting on lots and rebates might not climb as high... but if they can't ramp down production, and there will be tons of them on lots not selling, could we be in for some deeper rebates to move them?
Not looking for speculation on rebates... just an education on what options Ford has on the production line...
Jeff
Senior User
Joined: Jul 2004
Posts: 425
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From: Park Ridge, Illinois
Hopefully, they are building using a production method called "Pull". In this case, they are only building what they need to fill orders to people and dealers. They don't want to build excess vehicles. (Chrysler was famous for that in the 70's. That was one of the things Iacocca fixed during his time at the helm.) If the demand goes down, Ford don't build as much. That way they don't have excess inventory on hand. This whole topic could go on for hours!
Post Fiend
Joined: Feb 2004
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From: Damascus-Boring, Ore
There's about a 60-90 day lag between the time allocations are finalized and the vehicle is sitting on your lot. Because supplier committments are made so far in advance, it realistically takes 4 months to actually be able to turn the production down. Unfortunately, it also works the other way- if Ford and GM knew six months ago what we know now, lots would be stuffed full of Focus's, Rangers, Cobalts, and Colorados.
The dark side of all this will run something like this- the (fill in the blank: Ford/ Chevy) rep will say "so you want 100 Focus's? I have extra production schedule for Expeditions I have to fill- can you help me out there?"
The dark side of all this will run something like this- the (fill in the blank: Ford/ Chevy) rep will say "so you want 100 Focus's? I have extra production schedule for Expeditions I have to fill- can you help me out there?"
Senior User
Joined: Jul 2005
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From: Redford,Michigan
What we are doing right now at Ford is downtime. Michigan Truck builds the Expedition and right now they are working one week then off a week. If sales stay down they might get up to 26 week's off from now untill this time next year. They got the usual 2 week shutdown in July plus the week before and the week after. They are off this week but I think they go back to work next week.
Lead Driver
Joined: Apr 2002
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From: Tampa Bay, FL USA
Originally Posted by polarbear
...the (fill in the blank: Ford/ Chevy) rep will say "so you want 100 Focus's? I have extra production schedule for Expeditions I have to fill- can you help me out there?"
Post Fiend
Joined: Feb 2004
Posts: 10,728
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From: Damascus-Boring, Ore
If you met our General Manager, you'd understand why they're polite. To say she's drop-dead gorgeous really wouldn't do her justice (owner's daughter). 
That pretty face fools a lot of people though- she's one of the sharpest car persons I've ever met. Good genes, I suspect.
That pretty face fools a lot of people though- she's one of the sharpest car persons I've ever met. Good genes, I suspect.
