Ford to idle five North American facilities following downturn in sales

By Pouyan Broukhim

Ford Motor Co. has announced its plans to idle five of its North American vehicle assembly plants, three in the US and two in Mexico, for a total of 10 weeks to reduce its static supply.

The company has revealed that the Cuautitlan facility will be made idle for three weeks, the Hermosillo and the Flat Rock, Michigan factor would both be shut down for two weeks, whilst a further Michigan factory and Kansas City plants would also be closed for two weeks.

The plans for the shutdown of the plants in questions could see as many as 15,000 workers face temporary layoffs.

See also:

The slow selling vehicles that Ford has experienced increased inventories with include the company’s Fusion, Lincoln MKZ, Focus, Lincoln Continental, Mustang, Fiesta and Transit van models.

It is understood that at the beginning of the month, Ford had 111 days excess supply of Mustangs, 87 days’ worth of Fusions and 103 days’ supply of Transit vans.

The significant oversupply that has led to these plans can be attributed to the company’s downturn in sales, with Ford having seen an 18% drop throughout the month of August alone, significantly worse than the 2.4% drop in average across the rest of the auto industry.

Share

Featured Articles

Rise of the Chief Information Security Officer (CISO)

HE Dr Mohamed Al-Kuwaiti, Head of Cyber Security, UAE Government and Dr Aloysius Cheang, Chief Security Officer Huawei UAE, on the new age of the CISO

UAE building cybersecurity fortress for a safer world

Exclusive: His Excellency Dr Mohamed Al-Kuwaiti, Head of Cyber Security, UAE Government, on bold plans to build the world’s most secure digital society

The future of cybersecurity must be built on the basics

HE Dr Mohamed Al-Kuwaiti, Head of Cyber Security, UAE Government and Dr Aloysius Cheang, Chief Security Officer Huawei UAE, on the future of cybersecurity

10 of the best speakers at Procurement & Supply Chain LIVE

Leadership & Strategy

10 apps to support staff on World Mental Health Day

Leadership & Strategy

DEI done right: Brook Sims, COO, MAC Diversity Recruiters

Leadership & Strategy