Ford (F) CEO Mulally: Demand is Too High, So We're Adding Shifts
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On Wednesday Ford (NYSE: F) CEO Alan Mulally said Ford is doing so well, the company has plans to expand production through the end of 2012.
Speaking to members of Michigan's congressional delegation, Mulally warned the automaker might take a hit in the near-term due to production constraints, but the addition of a third shift over the next two quarters should help Ford meet demand.
Recent data showed Ford with a 15.2 percent share of the U.S. market in the first quarter, down from 16 percent reported in the same period last year. At the start of 2012, Ford execs said the company was aiming to capture 16.5 percent of the U.S. market, however that forecast was withdrawn in April.
Now might be one of the best times to boost production; U.S. auto sales are projected to rise from 12.8 million units in 2011 to 14.4 million for 2012, a 12.5 percent gain.
General Motors (NYSE: GM), Toyota (NYSE: TM), Chrysler, and others, will also obviously be looking to make the same moves, adding more competitive pressure to Ford. But the popularity of the Ford lineup (which includes the Focus, Mustang, and F-150) should keep Ford at the forefront of buyers' minds when making a purchase.
One constraint Ford is facing comes from suppliers. "Fool us once..." they say, meaning some are still licking wounds inflicted during the 2009 market collapse.
Shares of Ford are trading about 2 percent lower Thursday morning.
Speaking to members of Michigan's congressional delegation, Mulally warned the automaker might take a hit in the near-term due to production constraints, but the addition of a third shift over the next two quarters should help Ford meet demand.
Recent data showed Ford with a 15.2 percent share of the U.S. market in the first quarter, down from 16 percent reported in the same period last year. At the start of 2012, Ford execs said the company was aiming to capture 16.5 percent of the U.S. market, however that forecast was withdrawn in April.
Now might be one of the best times to boost production; U.S. auto sales are projected to rise from 12.8 million units in 2011 to 14.4 million for 2012, a 12.5 percent gain.
General Motors (NYSE: GM), Toyota (NYSE: TM), Chrysler, and others, will also obviously be looking to make the same moves, adding more competitive pressure to Ford. But the popularity of the Ford lineup (which includes the Focus, Mustang, and F-150) should keep Ford at the forefront of buyers' minds when making a purchase.
One constraint Ford is facing comes from suppliers. "Fool us once..." they say, meaning some are still licking wounds inflicted during the 2009 market collapse.
Shares of Ford are trading about 2 percent lower Thursday morning.
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