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Ford cuts pickup and SUV production as demand drops

Ford cuts pickup and SUV production as demand drops

Nelson Ireson May 20th, 2008 Nelson Ireson By Nelson Ireson Author May 20th, 2008
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December 31st, 1969 As GM moves to boost production to recover what was lost to the American Axle strike, Ford is cutting back its output of pickups and SUVs in the face of rising fuel prices in the U.S. Sales of the spacious and functional yet very thirsty vehicles have dropped sharply and consumers and businesses alike are moving toward more efficient choices. To help staunch the customer hemorrhage it is currently experiencing, Ford is also diverting more resources toward a smaller pickup based on the best-selling F-150. Talk of Ford's F-150 being dethroned by Toyota's Camry has already begun, and because the company won't be able to bring the new truck to market until 2011 or so, it's a likely scenario. Ford's F-150 or its predecessors have held the top vehicle sales spot in the U.S. for over a quarter of a century. Toyota's Camry has been America's top-selling car for a decade, but has been unable to break through the gargantuan figures of the Ford pickup. Despite the long history of strong sales, the company is starting to realize demand simply can't meet supply, reports the AP. Though a drop in consumer sales has hurt F-150 sales, the concurrent slump in the housing market has affected commercial sales of the pickup as well. The confluence of economic hard times is creating a perfect storm of sorts for Ford. To make sure supply doesn't outstrip demand by too great a factor, Ford will close its plant in Wayne, Michigan, for five weeks beginning at the end of June. Other models affected by the downturn include the Ford Expedition and Lincoln Navigator full-size SUVs.
Ford cuts pickup and SUV production as demand drops

Ford cuts pickup and SUV production as demand drops

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As GM moves to boost production to recover what was lost to the American Axle strike, Ford is cutting back its output of pickups and SUVs in the face of rising fuel prices in the U.S. Sales of the spacious and functional yet very thirsty vehicles have dropped sharply and consumers and businesses alike are moving toward more efficient choices.

To help staunch the customer hemorrhage it is currently experiencing, Ford is also diverting more resources toward a smaller pickup based on the best-selling F-150. Talk of Ford's F-150 being dethroned by Toyota's Camry has already begun, and because the company won't be able to bring the new truck to market until 2011 or so, it's a likely scenario. Ford's F-150 or its predecessors have held the top vehicle sales spot in the U.S. for over a quarter of a century. Toyota's Camry has been America's top-selling car for a decade, but has been unable to break through the gargantuan figures of the Ford pickup.

Despite the long history of strong sales, the company is starting to realize demand simply can't meet supply, reports the AP. Though a drop in consumer sales has hurt F-150 sales, the concurrent slump in the housing market has affected commercial sales of the pickup as well. The confluence of economic hard times is creating a perfect storm of sorts for Ford.

To make sure supply doesn't outstrip demand by too great a factor, Ford will close its plant in Wayne, Michigan, for five weeks beginning at the end of June. Other models affected by the downturn include the Ford Expedition and Lincoln Navigator full-size SUVs.

Tags: Industry

Posted in: Ford, News, SUVs


Comments (9 total)

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  1. By bambam #1, Posted: 5/21/2008

    Sensible move
    Its a lot of work to keep in touch of the market these days.
    ford has the right strategy but its a headache.

  2. By Wizards Lore #2, Posted: 5/21/2008

    IMHO If there products look like that in the USA no wonder FORD USofA are struggling...what a horrible looking 4x4/suv.

    Have a look at Australia at the Ford Territory, and import that...and i hate that car. Its got nothing on the Toyota Kluger/Highlander but is a damn sight better than that thing above..

  3. By chris #3, Posted: 5/21/2008

    wizard; the territory is a crossover, and ford america already has a crossover that looks exactly like it: the freestyle. and no one buys it.

    the explorer and expedition look like huge boxes because thats what all real SUVs look like. just a big muscular block of iron. no one wants a sleek SUV. thats what a CUV is for. mind you no one actually takes these things off road, but that's the reason why we're here today.. with inflated SUV and truck sales. people wanted other people to think they were tough, blue collar, outdoors types.

    wasn't I saying just yesterday that ford wouldn't just pump out more F150's and offer incentives? yeah im good.

  4. By Gus #4, Posted: 5/21/2008

    I have an Expedition which looks similar to the one above (2004) and it's ugly and I like it.
    Why?
    Because an SUV (to me) is a tool. All the fancy styling and swoopy lines and plastic body panels add cost and do nothing for it's purpose: Hauling, towing, camping (with the seats flat there's a 4' by 8' sleeping area in the back, sort of a mini-RV), going off road. Yes, I take mine off road, but only to access areas to take the dirt bike and quads, but that involves snow and mud, 4 wheel drive low range, with the diffs locked. When I tow the boat, I launch on slippery ramps covered in algea, so without 4wd this wouldn't work.
    Like I said, it's nothing but a tool to me, but a Swiss army knife of a tool, and those aren't pretty either...

  5. By chris #5, Posted: 5/21/2008

    Gus, I love you a little more today than I did yesterday. Can't do any of that in an AWD crossover can you? I've always wondered what the Escape's "automatic" 4WD would be like in off-roading. My girlfriend's dad's got it, and it's engaged at times... I think it's basically an AWD system that kicks in when you need it, and can lock the diff's. Too bad it's only got the 3L.. I'm sure its pretty capable none the less. We've had it going up and down 45 degree gravel roads, pretty scary.. but not a problem. As far as towing stuff, I don't know if I would go that far with an Escape.

  6. By burke #6, Posted: 5/21/2008

    Extinction is around the corner...

  7. By MyWheelsOnWalls.com #7, Posted: 5/21/2008

    Gus- I would have to agree with Chirs I too love you a liitle more today than I did yesterday.

    As for Burke tools do not become extinct they become rare and the price goes up, new ones at least. Although in the case of film based camera's they become plentiful and cheap on the used market..... oh is'nt thats what happening to SUV's..

  8. By burke #8, Posted: 5/21/2008

    My wheels...If I were looking for a tool with off-road capabilities, I would be looking at a Land Rover or a Hummer H1. If I needed a tool for towing, I would probably be looking at a Ford or GM truck with extended cabin and a diesel engine under the hood. That tool makes more sense for the American family consisting of big guys etc. When gas prices hit $5.00/gallon and that may happen as early as September 2008, that kind of tool with a 30-40 gallon tank making 12-14 MPG is going to have little use...And I don't think that SUV is going to gain collectible value really soon either...

  9. By Gus #9, Posted: 5/21/2008

    Burke, what your argument fails to comprehend is that some people want a mediocum of towing capability with a mediocum of off road ability, and the occasional ability to carry 8 people or sleep in the back.
    So I guess that makes the mid or full size SUV the perfect tool, doesn't it?
    I know, it's not as cool as an H1, though. Sorry about that...

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