13 August 2009

Ford Production: 2008

Ford has not been having the best of times lately. It has had to negotiate reduced benefits for its workers in the US and cut back production as sales declined. Back in 2005, Ford had 9% of the world’s car/LCV market but that dropped to 7% in 2008. That is nearly 1 million units less! The 2008 total was 4.75m. 51% of the cars/LCVs were made in the US in 2005, but by ’08, that crashed to 33% or 1.6 million units. This is mainly due to truck sales falling away in large numbers, a staple of Ford US. In most other countries, their share increased of Ford production. Now the following production figures by country:

Germany 16.5% 790,000
Spain 7.5% 360,000
Canada 6.5% 310,000
Mexico and Brazil 6.4% 300,000
Belgium 6% 290,000
Turkey 5.7% 270,000
China 5% 245,000
Rest 7% 330,000.

Ford has been through the pain of restructuring and thanks especially to its robust European operation, is in a reasonably sound position. Sales of late have been most encouraging both in North America and Europe.

The bottom line: Ford needs to stay sharp, as there is still much work to be done.

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