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Ford To Idle Four Factories Due To Slowing Car Demand, Rising Inventories
Zero Hedge ^ | October 17, 2016 | Tyler Durden

Posted on 10/18/2016 8:56:53 AM PDT by Brilliant

[The] US car industry history...suddenly appears to be bombarded with a barrage of bad news: starting with Ford's disastrous August sales when the company admitted "sales have reached a plateau"...one would almost think that a respite from the bad news was in order. One would be wrong.

As a result of slowing demand and declining US auto sales coupled with growing inventory, Ford Motor is halting one of two plants that builds its top-selling F-150 pickup as it idles four factories this month amid slowing U.S. auto sales.

Ford is shutting its Louisville, Kentucky, factory building the Escape and Lincoln MKC sport utility vehicles... Next week, the second-largest U.S. automaker will close the F-150 factory near Kansas City...

The plant closings follow last week’s shutdown of Ford’s Mustang factory in Michigan after sales of the sports car plunged 32% in September.

Contrary to the popular refrain of a strong economy, US auto sales are slowing as many analysts predict the industry won’t match last year’s record of 17.5 million cars and light trucks... Ford CEO Mark Fields has said “We said we expected the overall retail industry to decline in the second half of the year...” “We also said to expect to see some production adjustments in the second half -- this is one of them...”

Meanwhile, Felker said Ford is trying to match production with demand. Inventories have been swelling...

Worst of all, while the rest of the US manufacturing sector has been in secular decline, the auto industry was perhaps the last shining light for battered US manufacturing during the past several years. However, if demand for cars continues to collapse, forcing supply to follow suit, it is only a matter of time before the US manufacturing recession returns with a vengeance...

(Excerpt) Read more at zerohedge.com ...


TOPICS: Business/Economy; Politics/Elections; US: Michigan
KEYWORDS: automakers; automobiles; bhoeconomy; fordmotor; manufacturing
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1 posted on 10/18/2016 8:56:53 AM PDT by Brilliant
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To: Brilliant

who can afford an automobile nowadays with all these taxes going to freeloaders and illegal aliens?


2 posted on 10/18/2016 8:57:45 AM PDT by mainestategop (Don’t Let Freedom Slip Away! After America , There is No Place to Go)
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To: Brilliant

No one wants crappy aluminum cars that have been neutered to meet Obama’s CAFE standards.


3 posted on 10/18/2016 8:59:43 AM PDT by Buckeye McFrog
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To: Brilliant

The aluminum F150 is going to be an albatross around Ford’s neck.


4 posted on 10/18/2016 9:00:01 AM PDT by Paine in the Neck ( Socialism consumes EVERYTHING!)
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To: Brilliant

I don’t know about their whole line, but the F150 is expensive as s*^%.


5 posted on 10/18/2016 9:00:13 AM PDT by mykroar (Democrats in 2016: The party of genitalia, real or imagined.)
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To: Brilliant

the auto industry was perhaps the last shining light for battered US manufacturing during the past several years

Only because of Sub Prime Auto Loans that happen to be Blowing Up all across America as we Speak.


6 posted on 10/18/2016 9:01:07 AM PDT by eyeamok (destruction of government records.)
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To: mykroar

Agreed. But you need to buy when the industry is hurting. The incentives are better then.


7 posted on 10/18/2016 9:03:17 AM PDT by Brilliant
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To: Brilliant

I’ve heard that they plan to open factories in Mexico.


8 posted on 10/18/2016 9:03:25 AM PDT by ClearCase_guy (Abortion is what slavery was: immoral but not illegal. Not yet.)
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To: mainestategop

That and $60,000 - $70,000 for a truck... With wages flat for 20 years.... I see all of the new trucks driving around and parked in these working and middle class neighborhoods and think, who in the heck is buying all of these beasties?


9 posted on 10/18/2016 9:04:08 AM PDT by fuente (Liberty resides in three boxes: the ballot box, the jury box and the cartridge box--Fredrick Douglas)
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To: eyeamok

Not really news. Ford has always idled plants of vehicles that aren’t selling well. Hubby worked for Ford for 27 yrs. and it has happened before.


10 posted on 10/18/2016 9:05:41 AM PDT by KYGrandma (The sun shines bright on my old Kentucky home.....)
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To: Buckeye McFrog
No one wants crappy aluminum cars that have been neutered to meet Obama’s CAFE standards.

This may be ones best chance to buy a car that hasn't been neutered by CAFE standards.

11 posted on 10/18/2016 9:07:13 AM PDT by FreeReign
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To: fuente

They’re probably running it through their LLC as a business expense, assuming they’ve got the income to make the payment. One of the few perks left to small business owners.


12 posted on 10/18/2016 9:07:15 AM PDT by RegulatorCountry
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To: Brilliant

...due to preparing to move the plants to Mexico.

Fact.


13 posted on 10/18/2016 9:08:14 AM PDT by CodeToad
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To: Brilliant

The shine has gone off news automobiles and trucks. They cost as much as a small home.


14 posted on 10/18/2016 9:08:16 AM PDT by stars & stripes forever (Blessed is the nation whose God is the Lord. Psalm 33:12)
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To: RegulatorCountry

Car repairs are WAY cheaper than car payments.

Says my 2002 PT that still runs and has 80k miles.

This was my FIRST new car ever. Always drove $300 DIY’ers my entire life. No car payments again.


15 posted on 10/18/2016 9:10:44 AM PDT by bicyclerepair (Ft. Lauderdale FL (zombie land). TERM LIMITS ... TERM LIMITS)
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To: CodeToad

Actually, the part of the article that I edited out says they are also closing their factories in Mexico.


16 posted on 10/18/2016 9:11:14 AM PDT by Brilliant
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To: Brilliant
My newest vehicle is more than 10 years old. My lowest mileage vehicle has more than 150,000 miles on it.

They don't make 'em the way they used to ...

17 posted on 10/18/2016 9:11:49 AM PDT by NorthMountain (Hillary Clinton: scheming, robotic liar.)
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To: stars & stripes forever

Time for “Cash for Clunkers” II.


18 posted on 10/18/2016 9:11:53 AM PDT by dfwgator
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To: bicyclerepair

The purchase cost of the vehicle, interest, maintenance costs and depreciation can be used to reduce taxable income, assuming there’s enough income to cover those expenses.


19 posted on 10/18/2016 9:13:05 AM PDT by RegulatorCountry
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To: Brilliant

Perhaps Berry needs to throw his union buddies another ‘cash for clunkers’ bone....


20 posted on 10/18/2016 9:13:17 AM PDT by 556x45
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