Leclair added that production numbers for the second half of 2007 will only drop by 10%, coinciding with the launch of several new products, and like most industry shake-ups, changes will be slow to take effect. CEO Alan Mulally told reporters "with the inventories coming down, it takes a little bit of time for our cost-reduction efforts to kick in." The bulk of the cuts will result from the demise of the Ford Taurus sedan with the rest coming mainly coming from Ford’s pickup and SUV range. This year, trucks have accounted for 61% of Ford’s total production, down from the highs of 68% two and a half years ago.
Despite all the cutbacks, Ford's North American division will continue to lose money though 2007 and 2008 as well. However, Leclair added that we should start to see improvements by as early as next fall.