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Ford expected to close Claycomo's compact SUV line for one week

Thu. September 11, 2008; Posted: 03:14 AM
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Sep 11, 2008 (The Kansas City Star - McClatchy-Tribune News Service via COMTEX) -- F | Quote | Chart | News | PowerRating -- Sep. 11--Ford Motor Co. plans to shut down its compact SUV line at the Claycomo plant for the week of Sept. 29 because of slowing sales, a union official said this week.

It would be the second time in six weeks that production of the Ford Escape/Mercury Mariner would be curtailed since assembly workers returned from an annual summer shutdown in early August. That was when SUV production went to three shifts as Ford eliminated a second shift building the F-150 pickup at Claycomo.

The SUV line's second and third shifts were also down the week of Aug. 25, said Jeff Wright, president of United Auto Workers Local 249.

"The Escape is still selling well right now, but we're scheduled to be down," he said.

Ford has about 4,200 hourly employees at the Claycomo plant, nearly three-fourths of whom now build the Escape/Mariner. One shift is building the redesigned 2009 F-150, which will be introduced to showrooms later this year.

According to Wright, Ford also has informed union officials that production of the next-generation Escape has been pushed back two years, a decision that could mean a delay in Ford's plans to build a new flexible body shop at Claycomo.

"They've told us the current Escape is doing so well that they're going to push back the next version," he said.

Ford already has sharply cut forecasts for its total vehicle output in the second half of the year. But a Ford spokesman declined to confirm that Escape/Mariner production would be idled for the last week of the month or to comment on Ford's plans for updating the Escape.

Escape/Mariner sales continue to be relatively healthy compared with the rest of the domestic auto industry. Propelled by the introduction of the 2009 models, Ford sold a combined 16,634 units in August, a nearly 12 percent jump from the same month last year.

Ford this summer launched the 2009 Escape and Mariner equipped with more powerful engines and improved fuel efficiency.

Nevertheless, year-to-date combined sales have leveled off through August, down 1.3 percent compared with the same period a year ago. Through May 2008, when gas prices began making their rapid climb past $4 a gallon, Escape/Mariner sales had been up 7 percent from 2007.

Also, inventory levels for both SUVs shot up on Aug. 1. There was an 80-day supply of Escapes on dealer lots that day compared to a 46-day supply on July 1, according to statistics compiled by Automotive News. For the Mariner, inventory went up to a 110-day supply from a 64-day supply.

Regarding a next-generation Escape, Ford has not publicly commented on when a follow-up to the current version would be offered. But industry trade reports have suggested that Ford plans to bring out an updated version in the 2012 model year.

Ford was expected to build a new Escape that would be slightly smaller with a more carlike styling than the current model, based on a crossover vehicle built in Europe. The Escape successor also would be more fuel efficient than the current version, according to Automotive News.

Ford's local union officials have been hoping that the Claycomo plant's long-term future had become more secure after the company and the UAW reached a national contract last year. Ford agreed to build a new, flexible body shop for the SUV line at the Claycomo factory, as well as at four other assembly plants, in the new bargaining agreement.

Wright said the assumption among the work force was that if the launch of the next-generation Escape has been pushed back, construction of the new body shop will be delayed as well.

Body shops are considered huge investments in an auto plant. Ford spent $300 million at its Wayne, Mich., plant in 2005 to build a flexible body shop. The automaker is now spending $75 million to convert that into a body shop for small-vehicle production.

But borrowing costs for Ford and the other domestic automakers have gotten more expensive as their credit ratings have fallen below investment grade as they have seen huge losses in recent years.

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Cuts elsewhere

Ford will eliminate 500 employees at its crossover assembly plant in Oakville, Ontario, the company said Wednesday.

A Ford of Canada spokesman said the company would phase out the third shift in the plant's body and paint work areas over the next several weeks.

To reach Randolph Heaster, call 816-234-4746 or send e-mail to rheaster@kcstar.com.

To see more of The Kansas City Star, or to subscribe to the newspaper, go to http://www.kansascity.com. Copyright (c) 2008, The Kansas City Star, Mo. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

For full details on Ford Motor Co (F) click here. Ford Motor Co (F) has Short Term PowerRatings of 5. Details on Ford Motor Co (F) Short Term PowerRatings is available at This Link.

    


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