Ford Reports Sales Drop, Cuts Production
DETROIT, Sep 01, 2004 (AP Online via COMTEX) -- Ford Motor Co. reported another poor month of U.S. vehicle sales Wednesday, prompting the nation's second-largest automaker to cut planned vehicle production in the fourth quarter, which could hurt profits.
Ford, the first major automaker to report August results, said overall sales of its Ford, Lincoln and Mercury brands fell 5.9 percent, again pulled down on the car side. Car sales were off 22 percent. Truck sales grew 1 percent.
Percentages are adjusted and based on the daily sales rate. There were 25 selling days last month and 27 in August 2003.
Ford is experiencing a drop in car sales as it prepares for the launch later this year of new models such as the Ford Five-Hundred sedan and the redesigned Mustang.
Ford has dubbed 2004 the "year of the car," but its trucks and sport utility vehicles have carried the load so far. Sales of F-Series trucks, the nation's best-selling vehicles, rose for the 12th consecutive month in August, coinciding with the introduction of the new F-150 model in September 2003.
To help relieve a backlog of cars and trucks, Ford said it plans to build 830,000 vehicles in the fourth quarter, down from 900,000 in the year-ago period. That in turn could affect profits: Automakers consider a vehicle sold when it's shipped from the factory to a dealer, not when the dealer reaches an agreement with a buyer.
Some analysts have speculated that General Motors Corp., the world's top automaker, also could be forced to trim production in the fourth quarter because of inflated inventories.
In early afternoon trading on the New York Stock Exchange, Ford shares were down 19 cents to $13.92. |
