May 22, 2008, 9:29AM
Sluggish sales prompt Ford to cut U.S. production

Associated Press
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<!-- rbox ends here -->DETROIT — Ford Motor Co. is cutting North American production of pickups and SUVs as car buyers eyeing record gas prices turn toward more fuel-efficient models. The automaker says it no longer expects to return to profitability by 2009.
Ford also today cut back its projections for total U.S. sales in 2008 to between 15 million and 15.4 million vehicles. That's down from 17 million vehicles as recently as 2005.
"Unless there is a fairly rapid turnaround in U.S. business conditions, which we are not anticipating, it now looks like it will take longer than expected to achieve our North American Automotive profitability goal," Ford President and Chief Executive Alan Mulally said in a statement.
Its shares sank 59 cents, or 7.6 percent, to $7.21 in morning trading.
Ford said it will cut production by 15 percent in the second quarter, 15 to 20 percent in the third quarter and 2 to 8 percent in the fourth quarter. The cuts will primarily affect pickups and sport utility vehicles, which have seen sales plummet in recent months due to rising gas prices and the slowdown in new home construction.
Ford plans to increase its production of cars and crossovers through additional shifts and overtime. Ford's smallest offering, the Focus sedan, saw sales jump 29 percent in the first four months of this year, while its Ford Edge crossover was up 38 percent.
But the company's mix of vehicles remains heavily tilted to trucks and SUVs. Ford's F-series trucks, long the best-selling vehicles in the U.S., were down 16 percent in the same period.
Ford said in addition to realigning its manufacturing capacity to produce more small cars and crossovers, it plans to accelerate the North American introduction of some of its small cars from Europe and South America.
Ford had said in March it planned to cut second-quarter production by 10 percent and confirmed additional cuts at a factory in Michigan earlier this week. But it revealed the full extent of the cuts today.
Production cuts hurt revenues, because automakers book vehicles as sold once they leave the factory.
Consumers have been shifting to smaller, more fuel efficient cars in the last few months at a pace that stunned the industry. Through April, U.S. sales of subcompact cars shot up 33 percent, while sales of large SUVs were down 29 percent, according to Autodata Inc. Overall U.S. sales were down 8 percent in that period.
Ford said it is on track to reduce North American automotive operating costs by $5 billion by the end of this year. But it said the rising price of steel and other commodities are offsetting expected gains from its new contract with the United Auto Workers.
Also, Ford says its board is neutral about billionaire investor Kirk Kerkorian's offer to purchase up to 20 million shares of Ford's common stock.
Ford said in a statement today it will express no opinion about the $170 million cash offer.
Ford's board earlier had advised its stockholders to "take no action at this time" while it considered Tracinda's offer.
A Tracinda spokesman says the company doesn't have a comment on Ford's announcement.
With the offer, Kerkorian hopes to boost his ownership to about 5.5 percent of Ford.

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One other link

Ford: Gas prices causing shift to cars, continued losses - May. 22, 2008

 

This shouldn't be a surprise to anybody. The only thing that surprises me is that it took so dang long for them to do it.

 

Hey - it's okay with me as long as they finish building the truck I ordered in April - supposed to be built this week. Makes sense that they finally made the call to do this.

 

Look on the bright side, Super Duty trucks will soon be discounted deeply to move them off of the lots.

 

I'm already looking for a V10

Of course, it'll drive down the used prices for 2005-2007 which is what I'm really looking at. Don't need an '08

 

I am kinda looking to go back to a V-10 but it's the payments that I don't like.

 

If gas stays above $4 for a year, I think there will be a lot of cheap trucks out there, especially people that bought a truck as their only "car".

Short term, it isn't worth it to take a huge financial loss to trade for something fuel efficient, but if this crap drags on for a while.......

 

I read that early today and some has to do with housing market not builing new house so cont. don't need new SD truck for company and keep what they have longer.

 

Wouldn't you know it. Drove the same F150 for ten years then traded six months too soon. I picked up an '05 Gas SD in March. Probably could have saved thousands by waiting till later in the year.

Oh well, at least I can pull anything that has a hitch!

 

Now that people are looking for smaller trucks I have actually started looking for a bigger F 750 crew cab, any reference would be greatly appreciated!
I need something of a 2000 model with kitty CAT and 7 speed manual( not autos or 6/5 speed). XL/XLT does not matter...

 

And if it doesn't, just wrap a chain around your ball

 

At least It's not just FORD , Others are or will be in the tank sales wise.
"in the tank" get it (lol)

 

This is good news...IMHO. FORD is watching the trends...and adjusting accordingly.

Now...since FORD advertises the Escape Hybrid so much...as the "GREEN" vehicle...then why the heck do they not offer the following models in Hybrid form: Taurus, Focus, Ranger, Edge, etc...???

If there Hybrid is so good, then they should offer it in more models. Just my .02 here...


biz

 

Hybrid is a joke, thats why. Its that simple. Thats y nothing other than the Ford Escape, GM hybrid whatever, TOY Prius are on the market...hybrids are a freakin joke, propogated by man, played upon man.......need i sum it up more?

Please, let me, ive been writing DC, HBG, and the local bartender for a lonmg time, stop being so freakin gullible. Theres more oil out there than we know what to do with, if we were allowed to drill. So no more of this grandstanding in congress vs. oil executives,,,,,may look good on tv, but we need answers and we need them, yesterday. That simple.


Please, if you feel im wrong point me to where I am wrong, otherwise dont waste my time with its Bush's fault.

Anyways, if you aint strokin your coming