By Joe Benton
ConsumerAffairs.com
November 2, 2006
Ford Motor Co. will cut the number of cars and trucks the company builds to reduce inventory but industry analysts warn that consumers will probably buy even fewer of the models that Ford continues to sell.
The company plans to cut North American production of new cars and trucks by as much as 12 percent in the first half of 2007. Ford has already cut production by 21 percent in the last three months of 2006 and ordered temporary plant layoffs in several states.
A Ford spokesman refused to release detailed production forecasts for the year, which might indicate how much car and truck sales will be reduced. Ford's production guidance suggests the company expects its automotive sales to bottom out during the next year.
As part of its restructuring efforts, Ford disclosed in September that it expects its market share to eventually sink to as low as 14 percent.
Through September, Ford's car and truck sales in the United States are down 8.6 percent including Volvo and other import brands.
Ford had about 652,000 vehicles in its inventory as of September 30 and has struggled to sell its trucks and SUVs even at at deep discounts and cut into profits.
Ford lost $5.8 billion in the third quarter, which ended September 30. The company has lost $7.2 billion so far in 2006 and could loose as much as. $10.5 billion by the end of the year.
