Ford Cuts Fusion Production as Inventory Ramps

  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

2014 Fusion

Just three months after it pushed for greater output of the Fusion sedan, Ford (NYSE:F) is cutting the elevated manufacturing levels back down, as the company reportedly has more inventory of the popular car than it needs, Automotive News reports.

Ford will be implementing “approximately” one extra week off in December at its facility in Flat Rock, Michigan, “as [Ford] continue[s] to match production with demand,” according to a spokeswoman who spoke to the publication.

There is probably a whole slate of reasons as to why Ford’s Fusion inventory is higher than anticipated, but a report penned by Morgan Stanley analyst Adam Jonas notes that Ford executives are at least partially pointing to Toyota’s (NYSE:TM) “aggressive discounting of the Camry,” one of the Fusion’s primary competitors.

As of November 1, Ford was operating at an 88-day supply of the Fusion, up from the 65-day supply recorded on October 1, Automotive News data indicate.

More Articles About:

To contact the reporter on this story: To contact the editor responsible for this story:

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business