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Ford Fusion demand outstripping supply

The attractive new 2013 Ford Fusion has done wonders for the brand in the highly competitive midsize sedan segment - the vehicle is up nearly 22 percent compared to last year. But that sales momentum may soon hold steady due to low inventory levels of the new Fusion across the United States.
According to a report in The Detroit News, citing automotive data and Ward's Auto, Ford currently has a 39-day supply of the Fusion. That might sound fine, but a normally healthy average is about a 60-day supply. If Ford were to stop production on the Fusion today, there would only be enough vehicles available to get through another five weeks of sales, according to the News.
Currently, Ford produces the Fusion at its three-shift assembly plant in Hermosillo, Mexico, and will add production at its facility in Flat Rock, MI later this year. A Ford spokesperson told The Detroit News that when Flat Rock production comes online, the automaker will need to rush new stock out to the regions with the most demand for the Fusion. Ford has doubled its coastal retail market share, with huge amounts of growth in areas like Los Angeles, San Francisco and Miami, the News reports.

Detroit automakers keep their masks on to keep the factories running

United Auto Workers members leave the Fiat Chrysler Automobiles Warren Truck Plant in May. Fiat Chrysler along with rivals Ford and General Motors Co., restarted the assembly lines after several weeks of coronavirus lockdown. (AP)   DETROIT — When the coronavirus pandemic slammed the United States in March, the Detroit Three automakers shut their plants and brought their North American vehicle production to an unprecedented cold stop. Now, four months after a slow and sometimes bumpy restart in May, many General Motors, Ford and Fiat Chrysler Automobiles  factories are working at close to full speed, chasing a stronger-than-expected recovery in sales. So far, none of the Detroit Three has had a major COVID-19 outbreak since restarting production, even as the coronavirus is surging in Midwestern and Southern communities outside factory walls. "We have people testing positive, but it's not affecting operations," said Ford global manufacturing chief Gary Johnson. Keeping the pandemic at bay has pushed the automakers and 156,000 U.S. factory employees represented by the United Auto Workers into unfamiliar work routines and extraordinary levels of cooperation among the rival automakers that will have to be sustained for months to come. For automakers, the automakers' COVID response has been as much about instilling new habits as relying on new technology. Workers log their symptoms, or lack of them, into smartphone apps and walk past temperature scanners to get to their work stations. But company and union executives said masks, along with physical distancing, are the key to keeping assembly lines rolling. "The mask is the foundation" of protecting workers on the job, said Johnson. Complaints about masks Autoworkers are accustomed to wearing protective gear such as shatterproof glasses and gloves. Masks that cover the mouth and nose, however, were not standard equipment on auto assembly lines, and were a tough sell at first. "The biggest complaint is wearing a mask," United Auto Workers President Rory Gamble told Reuters. "A lot of our members perform physical tasks. Wearing the mask inhibits breathing." Beyond that, Gamble said, masks and distancing make it harder for workers to have conversations on the job or socialize during breaks. "ThatÂ’s pretty much out the window, and it makes for a longer day," he said. Masks make it harder for co-workers to read each other's expressions — often crucial in the noisy environment of a car plant.

Ford defends plan to shareholders: ‘We're simply reinventing the American car’

Ford's top executives took heat from shareholders over their plan to do away with sedans as we know them in Ford's North American lineup, as the company held its annual meeting Thursday. Critics said the plan to shelve the Fiesta, Focus and Taurus, reduce the Focus to one crossover model, and concentrate on high-margin trucks and SUVs was a shortsighted abandonment of entire market segments of affordable vehicles. "This doesn't mean we intend to lose those customers," Ford CEO Jim Hackett said. "We want to give them what they're telling us they really want. We're simply reinventing the American car." Ford has said SUVs/crossovers and pickups will constitute 90 percent of its North American lineup by 2020. And though only the Mustang and new Focus Active will remain, it plans to add new vehicles going forward that offer better fuel economy and utility, including EVs and hybrids. Hackett characterized the shift not as an abandonment of traditional cars but as a transformation of them. "We don't want anyone to think we're leaving anything," Hackett said. "We're just moving to a modern version. This is an exciting new generation of vehicles coming from Ford." It was Hackett's first annual meeting as CEO, and for the second year it was conducted online rather than in person. The change to Ford's lineup is part of Hackett's overall plan to cut $25.2 billion in costs by the year 2022. Executive Chairman Bill Ford Jr. blamed the negative reaction to the lineup plan on media coverage. "I wish the coverage had been a little different," he said. "If you got beyond the headline, you'll see we're adding to our product lineup and by 2020 we'll have the freshest showroom in the industry. The headlines look like Ford's retreating. In fact, nothing could be further from the truth." While Ford was clear about its plans for the Blue Oval, it has been less clear about the Lincoln brand. Hackett on Thursday said only that the Lincoln Continental, re-introduced just two years ago, would continue "through its life cycle" — but it has been such a slow seller that rumor has Ford killing the Continental again after that, and Hackett made no mention of a new generation. Presumably the MKZ sedan will go away when its twin the Ford Fusion does, but although Ford has outlined end dates for other models, the Fusion's departure is open-ended. The stock price has been a frustration for investors for years and has fallen 12 percent since the first of the year.