Ford idles truck and SUV plants

Following the lead from General Motors, Ford today has ceased production at their F150 Dearborn, Mi factory(the famous Rouge factory) along with the Louisville, Ky factory that produces the Explorer. It is unclear as to how long the factories will remain closed.

Sales of both models have continued to fall this year. F150 sales are 12.4% below 2006 figures. The Explorer is at 23.5% vs. 2006. The closings give ford a combine 10,450 units per week lost for the F150 and Explorer.

Ford exec Mark Fields said in a related article in the Detroit News that the Ford Motor Company is expecting a rough 2008 as car sales in the U.S. continue to decline. Fields asked and answered his own question, saying, "Do I think it's going to be Armageddon? No." He continued by saying that Ford will take the coming year on a month-to-month basis in order to "manage the business appropriately."

Source: Automotive News, Detroit News.

Volkswagen hunting for North American factory

This has been in the rumormill for a few months now. Finally we have some inside news as to the possibility of a new VW factory in the United States. According to Automobilwoche, a German sister magazine to Automotive News. In an interview with VW production chief Jochem Heizmann, "Our scouts are looking full speed in Mexico and the United States."

Sounds pretty strong for a company that did not know if they were going to try another U.S. factory a few months ago. Insiders at VW are looking strongly at the southeastern U.S. for a plant location. VW current North American factory in Pueblo, Mexico is currently nearing on their full capacity of 450,500 units for this year. The plant currently produces the New Beetle and Jetta models. Pueblo was also the last factory still producing the original air cooled Beetle which ended production in 2003.

As part of Volkswagen's Strategy 2018. A new U.S. assembly plant would help to boost VW U.S. sales to 800,000 units a year. Up from 329,112 U.S. sales in 2006.

Volkswagen's last try at a U.S. based factory was from 1978-1988 in Westmoreland County, Pennsylvania.

Source: Automotive News