The Motley Fool Discussion Boards

Previous Page

Stocks F / Ford Motor Company

URL:  http://boards.fool.com/i-like-what-doug-said-and-i-think-the-ford-30843616.aspx

Subject:  Re: Ford Fusion Output Boost Date:  8/26/2013  9:13 PM
Author:  TMFBreakerRob Number:  17752 of 18062

I like what Doug said. ;)

And I think the Ford folks will be careful to use the extra capacity to maximize profits, not just try for sales leadership or market share.

That being said, I'd also like to repeat this: Ford is in the process of converting almost all global production to just a few platforms. This reduces costs all over the place.... and it also facilitates the sharing of production facilities.

Where am I going with this? >> Currently, the only source of CD4 vehicles (such as the Fusion and MKZ) in the Americas is Hermosillo. Soon, the Flat Rock plant will join a list that is just getting started. What's that? Just that a new Ford Edge is coming based off the CD4 platform (produced at the Oakville plant) and the next generation Taurus will be coming off a modified CD4 platform (that's Chicago).

Chicago is starting to get pretty full with improved sales of the Explorer, but Oakville has a lot of unused capacity. If the sales warrant it, the Oakville plant could easily accommodate further Fusion (or Taurus) production.

Bottom line: A bigger bottom line! ;)

An unknown: I'm not sure what the future is for Explorer. It is based on the D3 platform and I'm not sure if Chicago will be upgraded to produce *both* D3 and CD4..... or whether Explorer will convert to CD4 also (I suspect it will). If not, perhaps all of Taurus (and MKS) production will shift to Oakville, allowing Explorer to take over Chicago. Again, the main thing is to fully utilize capacity and maximize commonality of parts that aren't seen by the customer for maximum profit.

Rob
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us