🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Ford to return to pre-COVID production rates in U.S. plants by early July, COO says

Published 06/10/2020, 09:17 AM
Updated 06/10/2020, 10:10 AM
© Reuters. FILE PHOTO: Ford's Farley speaks at the New York Auto Show in New York
F
-
DBKGn
-
VOWG_p
-

By Ben Klayman

DETROIT (Reuters) - Ford Motor Co (N:F) expects to have its U.S. vehicle assembly plants return by early July to building at the rates they did before the coronavirus pandemic shut down the U.S. auto industry for two months, a top executive said on Wednesday.

"By July 6, we will expect to have all of our U.S. plants operating at pre-COVID patterns," Chief Operating Officer Jim Farley said on a webcast of a presentation at a Deutsche Bank (DE:DBKGn) auto conference.

Ford and other Detroit automakers resumed production in the United States on May 18.

Farley said in the first three weeks following the restart, Ford built about 96% of its planned volume.

"We're really pleased with our start," he said, adding that beginning the week of July 8 Ford will begin adding back a third shift of work at many of its plants.

Ford's retail sales in May rose 44% from April, and its F-Series large pickup truck saw retail sales rise 5.3% from last year and gain 2.4 percentage points of market share, Farley said.

The upcoming launches of the new version of the No. 2 U.S. automaker's highly profitable F-150 as well as the new Bronco SUV and Mustang Mach-E electric SUV are in "really good shape," he said.

However, Farley acknowledged there will be "some impact" on the timing of those launches because Ford couldn't get into the plants during the shutdown.

Ford will introduce electric versions of the F-150 and its Transit van in the next 24 months, he said.

Also on Wednesday, Ford finalized details of its alliance with Germany's Volkswagen AG (DE:VOWG_p). Farley said Ford also remains open to other investors in its Argo AI self-driving unit in addition to VW.

© Reuters. FILE PHOTO: A 2018 F150 pick-up truck moves down the assembly line at Ford's Dearborn Truck Plant during the 100-year celebration of the Ford River Rouge Complex in Dearborn

Regarding Ford's ongoing restructuring, Farley said work remains to be done in Europe and South America. "For both regions, the reality is the pandemic means everything is on the table."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.