Blog: Dave LeggettFord: it just got worse and better

Dave Leggett | 18 August 2006

Aligning production capacity to demand with profit is no easy business, especially if you've been losing share and the overall market is also down. If there is no sales-end fix (not much room for incentives any longer) to get volume up, the bullet has to be bitten at some point or the losses mount. 

Ford bit that particular bullet in North America today. Planned Q4 production a fifth down on last year's level is a graphic reminder, if needed, of just how deeply in trouble Ford is in the US. It's a shocker, but it sounds like there was little alternative, especially with the market shift out of large trucks happening so quickly. If it means Ford's North American production footprint is now closer to being healthy, there's a positive to take out of it. 

Is a sale of assets at PAG (most likely loss-making Jaguar) more or less likely now? In the current climate, I'd say the chances of something being sold just went up a notch. 

US: Ford axes 21% of Q4 production, furloughs plants


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