Is Ford’s Lack of Fusion Supply a Concern?
The 2013 Ford (NYSE:F) Fusion is up 22 percent compared to last year as the popular midsize sedan continues to be a hit with consumers. Unfortunately for Ford, low inventory levels may put a stop to that momentum after the Fusion had its best ever May.
The Detroit News reports that Ford currently has a 39 day supply of Fusions — a healthy supply of Fusions would call for 60 days. If Ford were to put a hold on production, the supply would be sufficient for only five weeks of sale given its demand. “Inventory is going to be real tight during the summer months,” Erich Merkle, Ford’s U.S. sales analyst, explained.
If Ford is unable to meet demands for their midsize sedan, it could open the opportunity for Toyota (NYSE:TM) and Honda (NYSE:HMC) to pull further ahead in the midsize category. It could also allow Nissan to catch up to Ford with its rapidly gaining Altima.