Ford to Temporarily Cut Production of F-150, Escape, and Other Models

Last week Ford cut back production of the Mustang due to growing inventory and slumping demand and it appears the automaker will need to do the same to more models.

According to Reuters, Ford will temporarily shut down production lines of some of its popular vehicles, including the F-150 truck and the Escape crossover. Ford produces the F-150 at multiple plants, though the report says only the Kansas City facility will be affected.

In addition to the F-150, Ford will temporarily suspend production at its Louisville plant where it produces the Escape and the Lincoln MKC. The report suggests the shutdown at that facility will total at least two weeks.

Finally, two plants in Mexico, where the Ford Fusion, Lincoln MKZ, and Ford Fiesta are built, will also come to a temporary halt. The closure of these four plants will necessitate layoffs, which the report suggests could total 13,000 employees–approximately 9,000 of those jobs are in the U.S.

Ford says it previously predicted “production adjustments” in the second half of 2016 due to an overall dip in U.S. auto sales. Sales of all the aforementioned models declined last month, with the F-150 falling 2.6 percent compared to September 2015 (though year-over-year sales are up 5.5 percent). Automotive News says Ford dealers had a relatively high 95-day supply of the F-150 last month. Meanwhile, sales of the Escape dipped 12 percent 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.

Source: Reuters, Automotive News (Subscription required)

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