It's no secret that truck and SUV sales are hurting these days -- automakers around the globe are building fewer gas-guzzlers and shifting resources toward the development of smaller vehicles. Ford is already shutting down some truck factories and retooling others to build cars, but now the continually declining market is forcing them to go even further -- in a press release issued today, the automaker announced it will delay the introduction of its new, 2009 Ford F-150 pickup, at least until the fall.
F-150 sales have been declining for some time now. Having held the title of America's best-selling vehicle since 1991, last month the iconic pickup fell all the way to fifth place, bested by the Corolla, Camry, Civic, and Accord. According to CEO Alan Mulally, Ford is taking "decisive action to respond to this accelerating shift in customer demand," reportedly working to bring a new, smaller F-100 pickup to market as quickly as it can.
In the meantime, however, to avoid creating a glut of unwanted product, Dearborn is cutting third quarter production by another 50,000 vehicles, and will build 40,000 fewer units in the fourth quarter of 2008. Though Ford's Mark Fields says "we know core truck customers are eagerly awaiting its arrival," the automaker is pushing back delivery because there are still too many 2008 models languishing unsold on dealer lots. Even with deep discounts (including new employee pricing) the current F-150 isn't selling fast enough, forcing Ford to give dealers extra time to clear out their inventories.
The automaker's Kansas City Assembly Plant now won't start building 2009 F-150s until August, while the Dearborn Truck factory will ramp-up production in September. Large vehicle production is being cut across the board, and Ford is building more of its smaller offerings such as the Escape, Mariner, and current Focus. In addition, Mulally says Ford views "the move to smaller, more fuel-efficient vehicles as permanent," and will continue adjusting its lineup with a new Fiesta and European Focus set to begin North American production in 2010.
Source: Ford