CORRECT: Ford Boosts 3Q Production In The US For A Second Time
June 29 2009 - 5:52PM
Dow Jones News
Ford Motor Co. (F) boosted its third-quarter U.S. production
target for a second time Monday, a sign that the auto maker's
strategy to gain market share from its government-backed domestic
rivals may be paying off.
The company now intends to build 485,000 new cars and light
trucks during the quarter, a 16% increase over the 418,000 produced
in the year-ago quarter.
The move marks the first time in two years that Ford's quarterly
production will be increased year-over-year, and comes amid fresh
signs that the downturn in U.S. auto sales may be abating.
"We decided last year to break the mold and stop over
producing," said Mark Fields, Ford's president of the Americas.
"Our inventory is now down and with demand up, driven by our new
products, we are in the position to increase production again.
There is definitely a cessation in the deterioration of the
economy."
Ford's production change comes as General Motors Corp. (GM) and
Chrysler Group LLC are still scrambling to adjust output while
dealing with bankruptcy-induced reorganizations.
GM is still in the bankruptcy process while Chrysler is working
to find a new direction after merging its assets with Italian auto
maker Fiat SpA (FIATY) earlier this month.
Chrysler kept all of its U.S. plants idled during the past two
months as it restructured itself. The company was scheduled to
resume production at all of its U.S. plants Monday.
Ford's executives have also used media and public appearances to
highlight the auto maker's decision not to take federal aid which
appears to be resonating with some customers. GM and Chrysler both
accessed low-interest loans to keep their operations running.
"Anecdotally, we see customers coming into showrooms who
appreciate that Ford is doing its turnaround on its own," Fields
said.
Fields said he expects to see yet another gain in retail market
share in June when official data is released on Wednesday. This
would be the eighth time out of the past nine months that Ford has
boosted U.S. retail market share.
Ford announced earlier this month that it was bumping up
production by 10% to produce 150,000 cars and 310,000 trucks in the
quarter. Monday's revised target adds another 15,000 cars and
10,000 trucks.
-By Jeff Bennett, Dow Jones Newswires; 248-204-5542;
jeff.bennett@dowjones.com