Ford to Cut Production as Auto Sales Continue to Decline
Ford Motor (F) - Get Report will slash production at five of its North American plants before the end of the year to keep inventory levels from expanding as U.S. auto sales weaken for the first time in nearly a decade, Bloomberg reports.
The facility which will see the most production cuts is the Cuautitlan Assembly Plant in Mexico, which manufactures its Fiesta. Other facilities which will see significant production cuts are the Hermosillo Assembly Plant in Mexico making the Fusion and Lincoln MKZ, and its Flat Rock Assembly Plant in Michigan which makes its Mustang.
Sales of the Mustang alone are down 30% this year.
"We are continuing to match production with customer demand," Kelli Felker, a company spokeswoman, said. "We are on track for our dealer inventories to remain at planned levels by year-end."
Shares of Ford were rising in late morning trading on Wednesday.
Watch: Ford Is Committed to Electric Cars: CFO Bob Shanks
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