Ford (NYSE: F) announced late yesterday that it would cut back on the production of SUVs and large pickup trucks. I guess the harsh reality of high gas prices is finally sinking in at Ford headquarters. It's about time.
Ford will close its Wayne, Michigan truck plant for five weeks this summer. The plant is the source of Ford Expeditions and Lincoln Navigators, sad relics of the cheap gas and mindless consumption era. Not that I think mindless consumption is going anywhere, but cheap gas is probably gone for good. Both vehicles have seen double digit declines in sales this year.
And that's not the only major realignment in the works. Rumor has it that the Kentucky truck plant that produces the F-Series Super Duty pickup trucks will shut down for a month. Seems that expensive gas and a shriveling housing bubble has drastically reduced the demand for big work trucks. These plant closings come on top of a 10% reduction in truck production announced in March.
And in what seems like an admission of defeat for the profligate and war-inspiring American Way of Life, Ford said that it is planning a smaller pickup truck to be introduced in 2011. The truck will be based on the F-150, but be smaller and lighter and use a six-cylinder engine. Speculation is that the new truck, which may be called the F-100, will replace the Ranger.
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Reader Comments (Page 1 of 1)
5-22-2008 @ 10:41PM
Darren said...
Is it not amazig some overpaid executive never thought about making them get better gas milage in the first place. Maybe their plan was to sell these hunks of junk now and increase mileage later to ensure they had sales. I am proud to say that I once owned one and after all of the problems I never bought one again. Not to also remember the numerous recalls that Ford has and very low resale value!