Smoking The Competition: Ford Planning To Increase Production

June 1, 2009

With GM following Chrysler into bankruptcy, Ford is again bucking the trend by quietly announcing that it plans to increase production in the third quarter of this year (beginning this month for those of you who aren't accountants).

This move continues a trend of optimism that Ford Motor Company has maintained throughout the economic maelstrom we've all been living through. We commented back in November at the L.A. Auto Show how Ford was the only domestic manufacturer to maintain a semblance of normal auto show behavior as the company introduced the 2010 Ford Mustang and the 2010 Ford Fusion Hybrid, two cars that have given the company some great momentum heading into the traditional summer selling season.

The Detroit Free Press reports that Ford insiders continue to worry about how the GM and Chrysler bankruptcies will effect Ford's supply base. Now that Ford sees how the government support via the court actions will be used, the fears of uncontrolled bankruptcies have lessened because key suppliers should begin to receive monies owed, helping to keep them viable.

Dealership marketing initiatives and the company's non-bankrupt status should help Ford sell a planned 10-percent increase in production in the third quarter. Ford plans to produce 150,000 cars and 310,000 trucks for a total of 460,000 vehicles during the third quarter, Ford spokesman Mark Truby said.

[Detroit Free Press]

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