Wednesday, August 19, 2009
Scrappage scheme lifts Ford sales
Ford is to boost production in the US to meet increased demand for its cars sparked by the government's "cash for clunkers" scrappage scheme.
It said it would build another 6,000 units of its Focus small car between now and the end of September, and a further 3,500 of its Escape model.
The move will contribute to Ford's third quarter production being 18% higher than the same time last year.
The $3bn (£1.8bn) scrappage scheme is subsiding people trading in old cars.
Launched at the start of last month, the Car Allowance Rebate System allows owners of old cars and trucks gain up to $4,500 towards a new vehicle in exchange for their old model.
Add overtime
"I think we were surprised by the speed and the urgency with which consumers went to dealers," said Ford sales analyst George Pipas.
To meet the increased production, Ford said it would add overtime and a Saturday shift at its Wayne, Michigan assembly plant, which makes the Focus.
It has also reversed plans to shut its Kansas City plant for two days this month, the facility that makes the Escape, a small sports utility vehicle.
Ford also said on Thursday that it intended to boost US production in the October to December fourth quarter by 33% compared with a year earlier.
Official figures from the Commerce Department showed that the scrappage scheme helped lift US car sales by 2.4% in July, the biggest rise in six months.
DATED: 19.08.09
FEED: AW
