DETROIT--Ford Motor Co. boosted its production plans for the rest of the year as U.S. consumers, spurred by the "cash for clunkers" program, continue streaming into showrooms to buy.
Ford increased its third-quarter production to 495,000 new vehicles driven primarily by the demand for the Ford Focus and Escape. The company will build 6,000 more Focus vehicles during the quarter through overtime and Saturday shifts.
It is the third time the auto maker has tweaked its output, which will now be 18% higher than the same period a year earlier.
Ford also said it will now build 570,000 vehicles in the fourth quarter, 33% higher than year-earlier levels and 15% above planned third-quarter output.
Chrysler Group LLC, Ford and General Motors Co. are attempting to respond to the unexpected demand created by the clunkers program. Consumers are provided as much as $4,500 to trade in their old vehicles and buy new, more fuel-efficient models.
Ford's chief economist Ellen Hughes-Cromwick said the clunkers program could generate as much as 750,000 in new vehicle sales for the industry and is now on pace to run out of money within the next three weeks.
"This is what fiscal stimulus is supposed to do when you are in the financial situation we were in," Ms. Hughes-Cromwick said.
Posts
No comments:
Post a Comment