Ford Slows Production of C-Max and Focus

By | October 24, 2013
Ford's sales numbers have been slipping this past month, causing a buildup of vehicles on dealer lots. Ford has announced that it will shut down the factory responsible for the C-Max and Focus for two weeks so the excessive inventory can be cleared out. Currently, Ford has a 122-day supply of the C-Max and a 71-day supply of the Focus--up from 108 and 58 days, respectively. The plant in Wayne, Michigan, will be closed during the week of October 28 and again the week of December 16. Ford attributes the buildup of inventory to the industry-wide 4.2-percent sales drop in September. As one of the only automakers with a profit margin in the double digits, Ford has aligned production with demand, increasing production on more popular models like the F-Series and Fusion.
"They don't want to get ahead of themselves. Ford has been focused on keeping their pricing in check. Their operating margin is in double digits. Nobody else is there and they're obviously very proud of that," said Alan Baum, independent auto analyst at Baum & Associates, said in an interview with Automotive News. With such high sales numbers so far this year, Ford is looking to have its best year since 2007. Deliveries in the U.S. alone rose over one percent through September, with help from the sales of the C-Max that increased from 969 units to 28,254 units. Source: Automotive News (Subscription Required)