Ford Expands Production

So many things are going right for Ford ($F) these days. A few years ago, the company was worrying about staying alive. Today, it’s worried about keeping up with demand.

The WSJ reports:

Ford Motor Co. plans to increase its North American manufacturing capacity by 200,000 vehicles in 2013 through a series of production-line expansions and a shortening of its normal summer shutdown by a week at several plants.

The Dearborn, Mich., auto maker won’t say what its total capacity is, but the company built 2.8 million vehicles in the region last year and was working near full capacity.

Ford will reduce its normal summer shutdown to one week from two at most of its North American plants. That alone will add 40,000 units of capacity, the company said. Also, it plans to speed up production at other plants to meet demand.

Ford recently said it would add a third shift to its Kansas City, Mo., F-150 pickup truck plant, adding 900 workers. It also is adding a shift of workers to an assembly plant near Detroit that will make the Fusion sedan as well as the Mustang.

After spending years closing plants and battling with its U.S. unions to get cost-savings, Ford is adding back production and is running at nearly full capacity, said Jim Tetreault, Ford’s North American manufacturing chief.

“We have three-quarters of our plants running on three crews,” Mr. Tetreault said. Three shifts at a plant is considered beyond “full capacity,” which typically is two shifts running 40 hours a week. Going around the clock makes plants more efficient and profitable.

I think Ford is a $20 stock.

Posted by on May 22nd, 2013 at 9:39 am


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