Ford cuts production 21st August 2006
Car manufacturer Ford has announced it is set to suspend production at ten plants in the US.
The firm says that the move will see production in the fourth quarter drop by 21 per cent compared to a year ago as it attempts to recover from poor sales of its trucks and rising costs.
Around 168,000 less vehicles will be made in the three-month period than in 2005.
During the current quarter, production has dropped in places, with 78,000 fewer vehicles expected to be made than in the third quarter last year; around 20,000 units down on Ford's targets.
"We know this decision will have a dramatic impact on our employees, as well as our suppliers," commented chairman and chief executive officer Bill Ford.
"This is, however, the right call for our customers, our dealers and our long-term future."
Around 30,000 employees are expected to be affected by the news, although most will be paid almost full salary during any weeks that production is suspended.
Ÿ Adfero Ltd
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