Ford Temporarily Slows F-150 Production for 2021 Model Launch
Ford is temporarily reducing F-150 production and news to prepare for the launch of the all-new 2021 model, despite strong profits and a slight decline in U.S. sales. The company expects to lose 90,000 units of production due to factory closures for retooling, while deliberately slowing down F-150 sales to manage the transition.
Ford's North American division posted a robust profit of $2.4 billion last quarter, an increase of $119 million from the previous year. The company's pre-tax profit margin stood at an impressive 11.6 percent, demonstrating its financial strength despite the costs of retooling and launching new products. Ford's CEO in the USA, Jim Farley, reported a 0.3 percent decline in U.S. news through August, contrasting with the overall market's 5.1 percent growth.
To accommodate the production changes for the all-new aluminum-bodied F-150, Ford is deliberately slowing down its F-150 truck sales. The company expects to lose a total of 90,000 units of production due to factory closures for retooling. Ford has also reduced its sales to rental-car fleets by 36 percent in August, contributing to its overall U.S. news drop. This strategic move accounts for 10 percent of Ford's total U.S. sales year-to-date, down from 12 percent last year.
Ford's temporary slowdown in F-150 production and sales, along with reduced rental-car fleet sales, is a calculated move to ensure a smooth transition to the all-new 2021 model. Despite these adjustments, Ford's North American division remains profitable, with strong expectations for the future.
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