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Ford Plans Steep Production Cuts
The Daily Auto Insider
Monday, August 21, 2006
August 2006
Ford announced an ââ¬Åaggressive reduction of North American production,ââ¬Â in a news release.
The company said it is reducing North American fourth-quarter production by 21 percent ââ¬â or 168,000 units ââ¬â compared with the fourth quarter a year ago. The revised plan also reduces the company's previously announced third-quarter plan by 20,000 units.
Bill Ford, the company's chairman and CEO, outlined the decision to cut production in a note to employees, explaining the decision is part of broader efforts to accelerate the company's North American turnaround and saying full details of additional actions will be announced in September.
"We know this decision will have a dramatic impact on our employees, as well as our suppliers," Bill Ford told employees. "This is, however, the right call for our customers, our dealers and our long-term future."
For full-year 2006, Ford now plans to produce 3.048 million vehicles at its North American assembly plants ââ¬â 1.134 million cars and 1.914 million trucks ââ¬â a 9 percent reduction from 2005.
The revised production plan is expected to sharply reduce the supply of several models and reduce pressure on sales incentives and dealer inventory carrying costs. The plan also reflects expectations for lower industry sales of light trucks and truck-based sport-utility vehicles, as high gasoline prices are expected to continue to encourage demand for more fuel-efficient passenger cars and crossovers.
Mark Fields, executive vice president and Ford's president of The Americas, said the "tough but important" reduction in production plans underscores the seriousness with which the company is approaching its North American turnaround.
The new production plan will result in downtime at several assembly plants between now and the end of the year, including: St. Thomas, Ontario (Ford Crown Victoria and Mercury Grand Marquis); Chicago (Ford Five Hundred and Freestyle and Mercury Montego); Wixom, Mich. (Lincoln Town Car); Louisville, Ky. (Ford Explorer and Mercury Mountaineer); Michigan Truck in Wayne, Mich. (Ford Expedition and Lincoln Navigator); Twin Cities, Minn. (Ford Ranger); and all F-Series truck plants (Kansas City, Mo.; Norfolk, Va.; Dearborn and Kentucky Truck in Louisville).
The following plants are expected to operate on straight time or overtime based on consumer demand: Hermosillo, Mexico (Ford Fusion, Mercury Milan and Lincoln MKZ); AutoAlliance International in Flat Rock, Mich. (Ford Mustang); Oakville, Ontario (Ford Edge, Lincoln MKX and Ford Freestar); Wayne, Mich. (Ford Focus); Kansas City, Mo. (Ford Escape and Mercury Mariner); Ohio Assembly in Avon Lake, Ohio (Ford Econoline); and Atlanta (Ford Taurus).
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St. Thomas, we heard was on immediate shut down as of last Friday until further notice.
They are fawked.
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thats no good but at the end of the day who want to buy a crown vi anyways
even the cops in hammytown drive chargers and magnums
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The coppers switching the Doge wasn;t good for Ford...that;s for sure :(
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08-22-2006, 11:44 AM
(This post was last modified: 08-22-2006, 11:50 AM by eSVeeTy.)
I'm at Oakville Assembly and we are running 2 shifts (trim, chassis, final) 40hr weeks. Apparently we won't be affected by this.
As long as the Ford Edge and Lincoln Mark X take off we'll be ok. We have 61 units left to build for government testing with Job 1 expected Oct 1st. We have a 3rd shift waiting to come in if orders exceed our current production capacity.
We'll see what happens...
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ANTHONYD,Aug 21 2006, 07:47 PM Wrote:The coppers switching the Doge wasn;t good for Ford...that;s for sure :(
[right][snapback]203318[/snapback][/right]
Not good at all - but certainly inevitable considering the difference in fuel economy not to mention the Dodge's modern packaging and better handling.
IIRC Ford made a strategic decision to not offer a cop version of the Five Hundred - but I think the po-po would consider it underpowered anyway.
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eSVeeTy,Aug 21 2006, 09:44 PM Wrote:As long as the Ford Edge and Lincoln Mark X take off we'll be ok. We have 61 units left to build for government testing with Job 1 expected Oct 1st. We have a 3rd shift waiting to come in if orders exceed our current production capacity.
[right][snapback]203337[/snapback][/right]
Is the Edge the eventual replacement for the Freestar or is Ford going to try again? 'Cause from what I can tell the Freestar is getting hammered in the marketplace and if Ford doesn't do something about it soon they'll be sitting on even more piles of inventory than they are now :ph34r:
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NefCanuck,Aug 21 2006, 10:35 PM Wrote:eSVeeTy,Aug 21 2006, 09:44 PM Wrote:As long as the Ford Edge and Lincoln Mark X take off we'll be ok.ÃÂ We have 61 units left to build for government testing with Job 1 expected Oct 1st.ÃÂ We have a 3rd shift waiting to come in if orders exceed our current production capacity.
[right][snapback]203337[/snapback][/right]
Is the Edge the eventual replacement for the Freestar or is Ford going to try again? 'Cause from what I can tell the Freestar is getting hammered in the marketplace and if Ford doesn't do something about it soon they'll be sitting on even more piles of inventory than they are now :ph34r:
NefCanuck
[right][snapback]203344[/snapback][/right]
The Edge is not a minivan. It's a crossover SUV mid size between the Explorer and the Escape.
We don't really know the fate of the Freestar, but death is imminent.
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meford4u,Aug 21 2006, 10:43 PM Wrote:The Edge is not a minivan. It's a crossover SUV mid size between the Explorer and the Escape.
We don't really know the fate of the Freestar, but death is imminent.
[right][snapback]203347[/snapback][/right]
Ah, my bad (I've never actually seen the Ford Edge in the flesh and the photos and video shots I've seen make it hard to judge.
Yipes, here's hoping Ford puts something in Oakville to replace it, though I can't see them just walking away from the minivan market altogether...
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meford4u,Aug 21 2006, 10:43 PM Wrote:NefCanuck,Aug 21 2006, 10:35 PM Wrote:eSVeeTy,Aug 21 2006, 09:44 PM Wrote:As long as the Ford Edge and Lincoln Mark X take off we'll be ok.ÃÂ We have 61 units left to build for government testing with Job 1 expected Oct 1st.ÃÂ We have a 3rd shift waiting to come in if orders exceed our current production capacity.
[right][snapback]203337[/snapback][/right]
Is the Edge the eventual replacement for the Freestar or is Ford going to try again? 'Cause from what I can tell the Freestar is getting hammered in the marketplace and if Ford doesn't do something about it soon they'll be sitting on even more piles of inventory than they are now :ph34r:
NefCanuck
[right][snapback]203344[/snapback][/right]
The Edge is not a minivan. It's a crossover SUV mid size between the Explorer and the Escape.
We don't really know the fate of the Freestar, but death is imminent.
[right][snapback]203347[/snapback][/right]
Actually If Ford kills the Freestar maybe they should concider other minivans made by Ford else where round the globe that are doing well. My suggestions for a replacement would be all these:
The All New 2007 Ford S-Max - Larger then the current Focus C-MAX and better looking
The 2007 Redesigned Ford Galaxy - Ford's Largest Minivan from Europe
The All New 2007 Ford Transit - Suprisingly a good MPV from what I hear
The 2007 MK II Focus C-MAX - It would more or less be a twin to the Mazda5
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As of right now the Ford Freestar is scheduled to be terminated in April 2007 with the plant turning to full production of both Ford Edge and Lincoln Mark X models. Introduction of the new D471 unit, or as we know it, the Ford Fairlane, is set for Febuary/March of 2008 with full volumes expecting to be 100 000 units. Its Lincoln companion vehicle D472 is also expected to begin production in 2008.
Here's a picture of the new Fairlane...
![[Image: fordfairlaneol3.jpg]](http://img213.imageshack.us/img213/858/fordfairlaneol3.jpg)
Here is the 2007 Ford Edge...
![[Image: fordedgeui7.jpg]](http://img68.imageshack.us/img68/4985/fordedgeui7.jpg)
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eSVeeTy,Aug 22 2006, 12:48 PM Wrote:As of right now the Ford Freestar is scheduled to be terminated in April 2007.
Here is the 2007 Ford Edge...
[right][snapback]203430[/snapback][/right]
That Edge colour is Orange Crush. Went for a drive in one last night and was impressed with the 265hp and smooth ride over bumpy terrain. I'm hearing the Freestar will be toast as of October of this year, but for sure April at the latest.
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How did you manage a ride in an Edge this early? lol
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eSVeeTy,Aug 22 2006, 08:45 PM Wrote:How did you manage a ride in an Edge this early? lol
[right][snapback]203462[/snapback][/right]
I drove one as well at the plant ( I work in paint). It was easy. I saw one parked. I opened the door. I turned the ignition. I drove 175KPH around the parking lot and raced some guy in a HONDA.
I smoked him. :lol:
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What shift you on? I'm on B-shift trim.
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eSVeeTy,Aug 22 2006, 09:55 PM Wrote:What shift you on? I'm on B-shift trim.
[right][snapback]203477[/snapback][/right]
trim.......pfffffffffft.......rookie.
C-shift in paint. Str8 midnights.
OAC Sparky is on midnights in Body Build as an electrician
Canada SVT I am pretty sure is in Quality Control.
There are others haunting here too.
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I work str8 days and nights
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Yep, I'm A-shift in chassis torque office. I never looked at the speedo but it felt fast as I cut a sharp corner. Of course these are pre-production units. We build them,test them, and then some lucky souls get to smash them real good. I think the public should start getting them in October?
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Ahhh ok. Ya I'm on the bottom of the signority list now with 6.5yrs but I certainly can't complain about my job. 1 V-unit every 4 on IP line LOL
And yes, Job 1 is expected first week of Oct as far as I know.
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