Wednesday, 5 June 2013
Post 100: Ford to boost plant output
Ford Motor Company is boosting its production capacity by 200,000 units this year in North America. For the second year in a row, the automaker has increased its production capacity to meet the rising demand for cars, utilities and trucks. Last year, Ford raised capacity by 400,000 units.
Plants affected by capacity expansion include Chicago Assembly Plant, Flat Rock Assembly Plant and Kansas City Assembly Plant. Vehicles produced include Ford Explorer, Ford Fusion and Ford F-Series.
Ford also plans to reduce summer shutdowns to one week in order to increase production by 40,000 units. Summer shutdowns will be reduced in 20 plants, including six assembly plants.
The assembly plants affected are Chicago Assembly Plant, Cuautitlan Assembly Plant, Hermosillo Stamping and Assembly Plant, Kentucky Truck Plant, Michigan Assembly and Oakville Assembly Plants. The other plants in this programme are Buffalo Stamping Plant, Chicago Stamping Plant, Chihuahua Engine Plant, Dearborn Engine Plant, Dearborn Tool & Die, Lima Engine Plant, Van Dyke Transmission Plant and Woodhaven Forging.
Other than Ford, all the Detroit Big Three including General Motors (GM) and Chrysler are boosting their production capacity in the US Three of Chrysler’s factories in the US, including the Jefferson North plant in Detroit, will not have the summer shutdown. General Motors is planning to launch 23 new cars and trucks to capitalize on the rising auto demand.
As well as expanding production capacity, Ford is adding nearly 3,500 hourly jobs in 2013. Ford announced it will create nearly 2,000 new jobs at Kansas City Assembly Plant, and 1,400 new jobs at Flat Rock Assembly Plant. Ford plans to offer 12,000 hourly jobs in the US by 2015.
Ford posted an increase of 4.1% in earnings to $1.6 billion in the first quarter of 2013. Revenues improved 10.5% to $35.8 billion. The earnings and revenue improvements were mainly attributable to Ford's strong performance in North America and Asia Pacific Africa, partially offset by the unfavourable exchange rate in South America and uncertainties in Europe. ∎