Ford
will keep its inventory of finished vehicles higher than normal because it expects
an upturn in sales this spring, the Wall Street Journal reported.
The newspaper quoted Henry Wallace, the company’s chief financial officer,
as saying that Ford’s vehicle-inventory level in North America will be less
than 80 days of supply by the end of the first quarter.
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According to the WSJ, Ford generally considers 65 days of vehicle supply an
appropriate level, but wants to keep the inventory level higher than normal
because of the anticipated increase in demand, the CFO said. At the end of last
year, the company’s supply level was more than 90 days.
Ford is looking at what happens in the marketplace as it reduces vehicle inventory,
Mr. Wallace told the WSJ.
"Our aim is to continue to monitor sales trends very closely, and move
decisively to make sure our inventory reflect external demand," he said.
"It takes a little while to get down to the level we would like to be,"
he added. "But we are very much focused on making that happen."
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By GlobalData
The WSJ said that Ford adjusted production plans late last year and is in the
middle of further adjustments.
