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Ford Cutting Jobs, Production Due to High Gas Prices

ford.jpg The Ford Motor Company announced that it would cut one fifth of its production in the fourth quarter of 2006, making it the worst rollback since the 1980’s crisis. The cuts in production, accompanied by cutting thousands of jobs, is blamed on the rising price of gas.

Both Ford and GM have had some fierce competition from Asian automakers recently, especially due to their focus on energy efficient vehicles. SUV’s and pickup trucks have long been the lifeline of Ford and with the prices of gas topping $3, many consumers are looking for more efficient car alternatives. (The F-Series pickup truck has been the best-selling vehicle for 25 years and accounts for a large percentage of Ford’s profits.) Toyota is there to pick up this growing market, having surpassed Ford in monthly sales for the first time in history. Check out the prices of their new lineup. Apparently a large part of America is doing the same.

Related: Ford Cuts, Get a quote on new car

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While Ford does produce the best-selling trucks, it didn’t escape from the automaker’s recent problems – suffering a slump in sales of more than 12 percent this year. The continued surging of fuel prices consequently continues to hurt sales of the ailing Dearborn automaker.

Comment by Chuck — September 15, 2006 @ 12:59 am

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