Ford was recently forced to cut back on the production of its Mustang, due to slowing demand. Unfortunately, it appears as though the Mustang isn’t the only model getting cut back.
Ford is set to temporarily shut down production of its F-150 pickup. They produce this truck at multiple facilities, and reports show that their Kansas City plant will be the one to get the temporary shut down.
Ford also will be shutting down their Louisville plant temporarily. This facility is where the Escape and Lincoln MKC are produced. The cut of the Escape is due to a 12% dip in sales last month (August 2016).
This dip is caused by the refreshed model of Honda’s CRV, as well as the refreshed model of the Nissan Rogue.
On top of these two US production facilities being temporarily shut down, Ford also plans to temporarily shut down two of their Mexico facilities. These Mexico facilities produce the Ford Fusion, Ford Fiesta, and Lincoln MKZ.
This is all caused by a dip is US auto sales in the late second half of 2016. Sales of the F-150 are down 2.6% compared to September 2015, however, year-over-year sales are up 5.5%. Sales of the Escape are down a massive 12% compared to last month, which is due to the refreshed CRV and Rogue.
These massive temporary shut down will cause 13,000 workers to be laid off until further notice. About 9,000 of those workers are here in the US, with the other 4,000 in Mexico. Don’t be to surprised if Donald Trump mentions something about it in the coming days.
The Ying and Yang……..over production with unsustainable sales projections.
Whats with a 30 (90?) day supply of inventory that is the MO of most makers? There’s an acre of FCA Jeeps and such at a local dealer that never seems to move. Peak car?