Ford plans a 13-week downtime at F-150-producing sites to prepare for aluminum version

Article by Christian A., on January 30, 2014

Ford Motor Co. is planning a 13-week downtime at its sites building the F-150 to retool them as the carmaker gets ready to roll out the next generation of the pickup. According to Ford, the Dearborn Truck Plant in Michigan will have a downtime of 11 weeks while its facility near Kansas City, Mo, will stop production for 2 weeks.

The figures cover the traditional summer shutdown for both plants. Ford’s management of the 2015 F-150 rollout and customers’ reaction to the truck's lighter yet more expensive aluminum body are expected to affect the carmaker’s profits in 2014 as the F series accounted for 31 percent of its 2013 light-vehicle sales in the US.

Morgan Stanley estimates that the F series accounts for around 90 percent of Ford's global profits. "We see '14 profit pressure from extended truck production downtime for the transition to the new aluminum F-150 pickup truck and increased sales of smaller vehicles that have narrower margins," Efraim Levy, an analyst with S&P Capital IQ, has written.

Ford officials expect the carmaker to post lesser profit in North America this year than in 2013, when it logged a record income of $8.8 billion. They also expect its operating margins to be between 8 percent and 9 percent, compared with 9.9 percent in 2013. Ford chief financial officer Bob Shanks said that the drops are "largely attributable to F series," Shanks and Ford chief operating officer Mark Fields remarked that they are confident that inventories will be enough to meet demand throughout 2014.

"We have a lot of experience with this," Fields said. According to Buckingham Research Group analyst Joseph Amaturo, the longer downtime for the F-150 launch could cut Ford's pretax profit in North America by $800 million this year.

If you liked the article, share on:

Comments

Recommended

McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Hyundai has recently unveiled an unnamed pre-production model of its new fuel cell SUV. We don’t know what to call this model just yet, but sources say that this model...
by - August 18, 2017
This weekend at the 2017 Pebble Beach Concours d’Elegance, the BMW Z4 Concept will make its first public appearance. The good news is that we will finally have a real...
by - August 18, 2017
While Honda’s new 2018 HR-V will be rolling out at the dealerships with just a few updates, the company is certainly not giving up its spot as the best-selling vehicle...
by - August 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries