DEARBORN -- Monday, the company announced it would increase production in the third quarter by 16 percent. Below are answers to some of the most common questions about the decision.
This is the third time you've increased production recently. Why did Ford increase production?
We took the tough actions last year to align production with the real demand. Now, as our market share improves and we are seeing a strong reception for some our our new products, we are in a position to raise production again.
How much are you raising production?
Last month, we provided our first forecast of 3Q production: 460,000 units, up 42,000 (10%) vs. 3Q 2008. We are planning to add another 25,000 to the 3Q plan, bringing the total to 485,000, up 67,000 (16%) vs. 3Q 2008. The increase is pretty evenly distributed between cars and trucks (including crossovers). We’re adding 15,000 car and 10,000 truck units.
Do you really need more vehicles on the ground now?
Our inventories are lean. At the end of May we had 56 days’ supply. Overall industry was 64. GM was 88 and Chrysler was 82.
Is the economy truly recovering?
We are seeing positive signals in the economy. Consumer confidence is at a 9-month high, and jobless claims are trending lower, suggesting we have reached bottom.