Ford Motor Company announced the suspension of production for the Ford Escape, Ford F-150 pick up and Lincoln MKC for a week at its plant in Kansas City followed by three other plants in the coming weeks after retail sales in the United States fell in September.
Effect Of Stop Production
Nearly 13,000 hourly workers from 2 US Ford plants and 2 Mexico plants will be laid off during the temporary production stoppages. Of that total, four thousand are in Mexico and nine thousand in the United States, according to Fortune.
Ford suspend production of commercial vehicles Ford Escape and Lincoln MKC at the Louisville plant for two weeks and the production of F-150 Series in Kansas City plant will be on hold for a week. In Mexico, Hermosillo plant where the Ford Fusion and Lincoln MKZ is made will also halt production for two weeks and in Cuautitlan plant in Mexico where the Ford Fiesta is manufactured will also suspend production for an undetermined period.
Ford said it has expected that the industry sales would decline in the second half of the year and decided to do some adjustments to production, this temporary halt in production is just one of them. And while other brands are keeping firm of production, an auto analyst said that some brands will follow Ford's lead.
"This is a roller coaster that's gone to the top. I wouldn't be surprised if other automakers follow suit," said Mike Harley, an analyst with Kelley Blue Book to the Chicago Tribune.
Ford Escape and Ford F-150 Series
The temporary suspension of production will affect Ford Escape. At just 16 years old, the Ford Escape is one of the younger nameplates in the Ford family. Yet the Escape sells in greater numbers thanks to the market shift to crossovers. However, it suffered a 12 percent dipped last month and the crossover faces a tough battle up ahead with the release of refreshed competitors like the Honda CR-V and Nissan Rogue.
Meanwhile, the Ford F-150 pickup is the undisputed best-selling vehicle in North America beating Chevrolet Silverado and the Ram Pickup for years now and it has contributed much of Ford's earnings in the second quarter. However, sales of the Ford F-Series decreased by 3% in September and Ford dealers had a relatively high 95-day supply of the F-150 last month which prompted the temporary stoppage in production, according to MotorTrend.
To know the movers and shakers on this months US auto sales, read our previous report here.
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