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Low demand prompts Ford to halt F-150, Escape production

Low demand prompts Ford to halt F-150, Escape production image

Text: AutoIndustriya.com / Photos: Ford | posted October 19, 2016 07:56

Four plants production suspended, Dearborn plant continues

Ford Motor Company recently announced temporary suspension of F-150 pickup production for a week at its Kansas City assembly plant due to low demands. Three other plants will be temporarily idle for the next few weeks. The Dearborn Truck Plant in Michigan, on the other hand, will continue its production operations.

According to data compiled by Automotive News, Ford F-150 is originally the best-selling vehicle in North America with up to to 5.5-percent U.S. sales. However, its deliveries fell by 2.6-percent in September which left Ford dealers with a stockpile of pickup trucks by end of month. 

Ford said that there are about 14,000 workers at the four plants including managers and at least 13,000 will be laid off during the temporary suspension. The 4,000 workers to be laid off comes from Mexico and 9,000 comes from the United States.

"During our second quarter financial call, we said we expected the overall retail industry to decline in the second half of the year from the same period last year. We also said to expect to see some production adjustments in the second half -- this is one of them. We continue matching production to meet demand," said Kelli Felker, Ford spokeswoman.

Also included in the suspension are two crossovers namely, the Ford Escape and the Lincoln MKC which are made in its Louisville Assembly Plant in Kentucky for two of the next three weeks. 

Apart from these, two more plants in Mexico are about to shut down. First is the Hermosillo plant that builds the Ford Fusion and the Lincoln MKZ sedans. Second is the Cuautitlan plant that produces Ford Fiesta small car.

Ford also said that only U.S. Workers with more than one year experience will receive at least 80-percent of their paycheck during the shutdown in combination of the state unemployment benefits and the brand's supplemental pay. However, the company did not say any details regarding the compensation for its affected workers in Mexico.