Ford Motor Company is ramping up production of its F-Series trucks following challenges with aluminum supply that impacted output over the past year. The automaker announced that production of its "Super Duty" trucks reached a 20-year high last month, while F-150 pickup output also saw its best performance in two years.
This boost in production comes after Ford worked alongside its aluminum supplier, Novelis, to recover from plant fire incidents in September and November of the previous year. Rob Kaffl, head of U.S. sales at Ford, indicated that an increase in available inventory at dealerships is expected over the coming months as production returns to healthier levels.
In August, Ford’s Super Duty trucks accounted for over 39,000 units produced, marking the highest monthly output since March 2006. Despite this increase, Ford reported an 8-month consecutive decline in year-over-year U.S. new vehicle sales, with a notable 10.3% drop in August compared to the same time last year. F-Series sales fell 10.9% through August, including a 1.2% decrease last month.
However, Ford maintains a daily supply of about 40 days for its pickup trucks, which is below the historical average considered healthy for the market. The company aims to increase this supply to between 50 and 60 days.
Ford’s challenges are compounded by the discontinuation of certain vehicle models earlier this year and reduced sales to rental fleets. The automaker anticipates a total loss of $1.5 billion due to the supply issues. Despite these hurdles, Ford’s retail market share in the U.S. remained steady at 11.7% in August.
Why this story matters:
- Highlights Ford’s response to supply chain disruptions impacting key products.
Key takeaway:
- Production is increasing, but sales drops remain a concern for the automaker.
Opposing viewpoint:
- Some analysts may argue that Ford’s recovery efforts might not be sufficient to offset broader industry trends limiting sales.
