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Ford halts Mustang production

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#1 ·
Ford Halts Mustang Production in Wake of September Sales Decline
Autoblog


The Ford Mustang suffered a 32-percent sales decline in September, handing the monthly sales crown to the Chevy Camaro for the first time in about two years. The company also said it is shutting down the Flat Rock Assembly Plant in Michigan for a week as it deals with slower sales.

The shutdown, according to Bloomberg, started on October 10th with production set to resume on October 17th. The Flat Rock Assembly Plant is in charge of making Mustangs, as well as the Lincoln Continental. As a part of Ford's labor agreements, all 3,702 employees that work on the two vehicles will continue to be paid during the shutdown.

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#2 · (Edited)
I think something else is up......

"The latest report suggests Camaro inventory levels are averaged 120 days of supply at the end of September, compared to 89 days for the Mustang."

Looking at dealer inventories today, Camaro has 29,987 units available, while Mustang has just 13,855...less than half. Even though Mustang or sports care sales tend to slow down in 4th quarter with colder weather conditions. Oct 2015 was huge for Mustang at 10,096, over 6k units more than 2014, so expect another Mustang sales decline report for October as well.

Then there is the question would Lincoln shut down New Continental production just as they are building nationwide inventories with just 882 units available? And why would Continental production have to halt if it is Mustang production that is the issue. They don't share the same production lines on completely different platforms, etc. This aspect sounds like the article just included Continental since they are both at Flat Rock.
 
#3 ·
Why don't they use this time to build more for markets that are back ordered like Australia?
 
#4 ·
That's why I don't think the shut down is about just one months lower sales, when overall sales are up YTD, and global markets are backordered. Along with the fact that the Flat Rock plant is the ONLY manufacturing plant for Mustang.

I think they need the line down for Mustang production upgrades for something they have not announced yet, especially with all the different Mustang mules we have seen driving around lately.

I think to maintain Mustang momentum, and not let Camaro gain any sales traction, MY2018 refresh will be pushed up to get the 10-speed in the EcoBoost Mustangs, and another edge over the Camaro that only offers the 10-speed in a top of the line $50k+ model.
 
#9 ·
Front loaded fleet volumes is a well known fact.
As is much less incentive amounts.
As is an older model awaiting freshening / new powertrains / sport variants.
As is seasonal effects.

Anyone who is not desperately and repetitiously trolling across (4) sites trying to sell a narrative that scaling back fleet is the only reason for perpetually decreasing Mustang sales, knows that it is a combined effect. And although I can’t speak with confidence on which business model is best, I am pretty sure that GM’s plan of tripling cash on the hood, is not the best path going forward.


http://www.thetruthaboutcars.com/2016/10/gm-tripled-chevrolet-camaro-incentives-september-made-small-dent-bulging-inventory/

Thanks
 
#10 ·
4th quarter, Sept/Oct/Nov are traditionally slow months for RWD sports cars in the US and Canada. So the automaker has two options. (GM)Continue to overproduce and deeply discount to artificially create demand, or (Ford)slow production and maintain pricing in balance with demand.

Camaro entered the slow season with a whopping 139 day supply, while Mustang had a rather tight 71 day supply.

But at this point, I think Ford has such a huge lead, that the 4th quarter will be all about profitability, and still maintain the #1 Sports Car sales position.

 
#11 ·
Ford halts -more- production

Ford to suspend output at four plants, including for F-150
Reuters/MSN

Bernie Woodall - 2 hrs ago


...Ford Motor Co on Monday said it will shut down production of its best-selling F-150 pickup truck for a week at a Kansas City assembly plant, and temporarily idle three other plants over the next several weeks...

...sales of the overall F-series pickup model line fell nearly 3 per cent in September. Ford dealers had a heavy 95 days' supply of the pickups on their lots at the end of September, according to data compiled by Automotive News.

F-150 production at the Dearborn Truck Plant in Michigan will continue without interruption, Ford said....

...Ford is also suspending production of two sport utility vehicles, the Ford Escape and the Lincoln MKC, at its Louisville Assembly Plant in Kentucky for two of the next three weeks. The compact Escape, one of Ford's most popular models, is under increasing pressure from Japanese rivals.

Ford said it also is shutting two plants in Mexico. One is a plant in Hermosillo that makes the Ford Fusion and the Lincoln MKZ sedans, and the other is in Cuautitlan that makes the Ford Fiesta small car.
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#12 ·
Now I know something is up...

I seriously doubt that any of these plant production stops for a week, has anything to do with sales. So what's Ford planning for...

The refresh for all models are already in production and on sale, except for Mustang and F-150.

Flat Rock - Mustang/Continental already had it's shut down and back online this week.

Kansas City Truck Plant - F-150:

SuperDuty production delayed due to 'parts'?

Louisville Assembly Plant - Escape/MKC:

Hermosillo - MKZ/Fusion:

My thought is that Ford is doing a mechanical upgrade of some sort. Some big announcement is coming.....
 
#13 ·
I hope it has to do with inventory, and it is not about a mechanical issue that needed immediate attention. They may have found something unsafe, and needed to stop production for a replacement part. If so, that would likely entail a large recall for pre-fix vehicles.
 
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