'CASH FOR CLUNKERS' SPURS STRONG SALES

+ Click to Enlarge DEMAND FOR PICK-UPS PICKS UP: Ford will add a third shift at its Dearborn, Michigan plant as demand for F-150 bakkies increases.

August 28, 2009

Are Americans getting back their taste for trucks and SUV's? Ford is adding shifts in two states to build more F-150 pick-ups and Escape and Mariner SUV's.

The company's Dearborn, Michigan, plant will return to a three-shift operation in September, a move that will boost production of F-150 pickup trucks by about 10 000 in 2009.

Ford will also adding a third shift at its Kansas City, Missouri, assembly plant in October, which will increase production of Ford Escape and Mercury Mariner SUV's by 2400 by the end of October.

The actions are part of the automaker's plans announced earlier in August to raise production for the third and fourth quarters after strong sales spurred by the US government's "Cash-for-Clunkers" incentives.

Ford has set third-quarter North American production at 495 000 vehicles, 10 000 more than it had originally estimated. It plans to produce 570 000 vehicles in the fourth quarter, up 33 percent from the last three months of 2008.

Ford's Focus sedan was the third biggest seller during the "Clunkers" programme and the Escape SUV was also in the top 10.

Ford marketing vice-president Ken Czubay said the company's August sales were forecast to better July's results - which were the best so far in 2009.

US auto sales rose to their highest level of 2009 in July and analysts have forecast stronger sales for August as consumers rushed to take advantage of the "Clunkers" rebates, which offered up to $4500 (R35 000) to people who traded-in old gas guzzlers for new vehicles. - Reuters