Ford has said it will temporarily shut down two light truck plants in Michigan and Kentucky on Monday, confirming earlier reports that the Big Three would reduce output due to falling demand.
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According to the Associated Press (AP), the Ford shutdowns come two weeks ahead of planned holiday closings. Ford spokeswoman Anne Marie Gattari told the news agency the move was part of the company’s typical response to adjust supply to meet fluctuating demand.
The affected plants build the F-150 pickup truck in Dearborn, Michigan and the Explorer SUV facility in Louisville, Kentucky.
AP noted that F-series pickup sales fell 11.7% to 46,568 last month and added that more plant cuts are expected after the first of the year as part of Ford’s announced plan for a 7% reduction in production in the first quarter of 2008. The company is predicting sales will be at their slowest pace in a decade in the first half of 2008.
General Motors has also anticipated a decline and announced an 11% first-quarter production cut, the news agency added.
As reported by just-auto last week, the US Big Three were all planning to temporarily halt production of full-size pickup trucks because of weak demand.
The Wall Street Journal reported in its online edition that Chrysler planned to halt production at two plants before Christmas and keep them closed throughout January while GM would shut three pickup truck plants for the Christmas holiday and for two weeks in January to prevent oversupply.
