As initially reported by the Census Department, motor vehicle sales were up 1.2% in July following a 0.9% gain in June. At the time, I commented, “This is unbelievably bizarre in the face of actual auto sales reports.”
The Census Bureau revised sales estimates much lower in September as noted in Retail Sales Unexpectedly Decline, Huge Negative Revisions in June and July: Reflections on “Bizarre” Sales Reports.
Today we learn Ford to cut production at five North American vehicle plants due to rising inventory and slumping sales.
Ford Motor Co said on Tuesday it plans to idle five North American vehicle assembly plants for a total of 10 weeks to reduce inventories of slow-selling models.
The plants affected include three assembly plants in the United States and two in Mexico, the company said in a statement.
The vehicle models include the Ford Fusion and Lincoln MKZ midsize sedans, the Ford Focus compact car, the Lincoln Continental and Ford Mustang, Ford Fiesta and the Ford Transit van.
The factories involved employ more than 15,000 people, according to Ford’s website. The company did not say how many of those workers would face temporary layoffs.
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As soon as the insurance companies start settling on all those flooded cars, the orders will start coming in.
ReplyDeleteSounds like a perfect time to buy a car. High inventory = low prices.
ReplyDeleteGM and Ford are distorting the auto markets by over producing, stuffing dealers with cars and then buying debt way down the credit score list.
ReplyDeleteGM and Ford are a menace to the economy in general and to the auto business as a whole!
They do this practically every year. This go around 10 weeks is the largest I've seen for a shutdown.
ReplyDeleteSounds like a perfect time to buy a car. High inventory = low prices.
ReplyDeleteSeptember 21, 2017 at 1:10 PM:
That's what the dealers are thinking...about buying from the manufacturers. Don't expect the dealers to pass on their savings to you though. That is just extra profit to them. The will still take you for a ride, but not in a good way.
Ford is also doing this "roll on sister" ad campaign that is probably the most blatant and insulting pandering I have seen since they told the Popeyes lady to tone it down. I understand wanting to make sure everyone feels represented in your advertisement, but when I see what is obviously a swing and a miss at interpreting Black culture it would actually insult me if I was Black. I would think, "Did they have NO Black people in the marketing department that stood up and said, "umm, this is bad"?!
ReplyDeleteObama's fault.
ReplyDeleteNo sales slump at Mercedes Benz....I guess when you invent the car and most of the safety features.....
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ReplyDeleteProblem is many, many drivers are under water on both the loan and the actual car in storm areas. Good candidates to float another loan?
Just bought a BMW for cash. Saved close to $10,000 vs. buying 18 months ago.
ReplyDelete