How Daily Rentals Affect Mustang Sales
While Ford Focus retail sales climbed 36 percent compared with a year ago, Mustang sales in the second month of the year fell by 28% compared to the same month in 2007.
February of 2007 saw a total of 10,772 ponies find new homes. Fewer than three quarters of that number, just 7,752, were able to accomplish the same feat this past month.
Overall, retail sales were down 6 percent, and lower daily rental sales (down 20 percent) account for 60 percent of the decline. Mustang is a popular daily rental car in the southern states, which may be partly responsible for the ongoing decline in unit sales.
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Fresher products in the lineup posted positive results. Retail car sales were 4 percent higher than a year ago, led by the Focus and the three mid-size sedans – Ford Fusion, Mercury Milan, and Lincoln MKZ – which combined posted a retail sales increase of 7 percent.
Crossover utility vehicles continued to see higher sales in February (up 10 percent). Higher sales for the Ford Edge (up 46 percent) and Lincoln MKX (up 22 percent) led the increase in CUVs.
The company said that is cutting second-quarter North American production by 10 percent. Ford plans to produce 730,000 vehicles in the second quarter of 2008, down from 811,000 vehicles in the same period a year ago.
In addition, Ford will reduce its operations at Chicago Assembly Plant, Louisville Assembly Plant and Cleveland Engine #2 to one shift and delay restart of production at Cleveland Engine #1 until the fourth quarter of this year.
The Chicago Assembly Plant, opened in 1924, currently builds the Ford Taurus, Taurus X, Mercury Sable and will be home to the all-new 2009 Lincoln MKS, which will arrive in dealer showrooms this summer. It employs approximately 2,300 workers. The plant is slated to receive an additional new product as outlined in the 2007 UAW-Ford Collective Bargaining Agreement, which expires in 2011.
Opened in 1955, Louisville Assembly Plant produces the Ford Explorer, Explorer Sport Trac and Mercury Mountaineer. It currently has approximately, 2,200 employees and is slated to receive an investment in a new body shop and a new product as outlined in the 2007 UAW-Ford Collective Bargaining Agreement, which expires in 2011.
Opened in 1955, Cleveland Engine Plant #2 produces the 3.0-liter engine. It employs approximately 800 employees. Cleveland Engine Plant #1, which opened in 1951, produced the Duratec 3.5-liter engine until it was temporarily idled in May 2007. Production of the 3.5-liter continues at Lima Engine Plant.
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