Flandry
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From Autosavant:
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Ford Will Retool US Factories for Switch to European Models
By Brendan Moore
It was reported by several publications a few days ago that Ford was considering taking one of their shuttered or soon-to-be shuttered SUV or truck assembly plants and investing a large sum of money in retooling the plant for production of one of their European models. Such a move is unusual among automakers; renovation of a plant generally occurs when a new model or a new generation of an existing model is going to be introduced, but these are unusual times for automakers currently. The market has turned 180 degrees in the past few months due to upward-spiraling gas prices, with SUV and pickup sales plummeting like a fat guy jumping off a bridge, and consumers clamoring ever so loudly for small, fuel-efficient cars.
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Our sources at Ford say that Mr. Mulally has already made the decision to convert at least three truck/SUV production facilities in North America as soon as possible to produce Ford models currently sold in Europe, where Ford is renowned for its small cars. The timeline Mulally prefers, according to insiders, is “yesterday”. He has made up his mind and is pushing forward.
Not only that, but the decision has also already been reached to make the new F-100, a smaller, lighter version of the upcoming 2009 F-150 that uses less fuel, at the Michigan Truck Plant in Wayne where they currently produce Ford Expeditions and Lincoln Navigators. Production dates have now been moved up considerably for the F-100. And, the Louisville Assembly Plant which now makes Ford Explorers and Mercury Mountaineers will be converted to a unibody facilty which will produce either the Fusion or the Focus as well as possibly some Focus derivatives.
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The retooling to be undertaken is cataclysmic and will cost a lot of money. Obviously this is money that Ford desperately needs to marshal at this point in their turnaround efforts, but Mulally and most of the senior executives now believe that if they don’t spend the money they have on the retooling right now, there will be no company to spend it on later. They are literally betting the rest of the company’s future in the next 12 months. Our sources say there is no more discussion at this point as to whether or not they should do it; the discussion now is simply just how it will be done.
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