Ford boosts H2 output by 26% to meet demand

Ford Motor Co., benefiting from the Obama administration's "cash-for-clunkers" program, said it's boosting factory output by 26 percent in the second half to meet the increased demand.

Ford, the only major U.S. automaker to avoid bankruptcy, is raising North American production by 18 percent in the third quarter to 495,000 cars and trucks. Fourth-quarter output climbs 33 percent, to 570,000 vehicles, the Dearborn, Michigan-based company said today.

The Ford Focus small car and the Escape small sport-utility vehicle are among the top 10 sellers in the federal program that gives consumers as much as $4,500 to trade in an older car for a fuel-efficient auto. Other leading sellers, such as the Fusion sedan, helped Ford post its first monthly sales increase in July since 2007 as auto demand picks up across the industry.

"People who would have liked to have traded in their larger SUVs have been held hostage by their lower resale values and concerns about the economy," Ford sales analyst George Pipas said in an interview yesterday. "Cash for clunkers released that demand and allowed them to do what they'd wanted to do."

To increase Escape production, Ford said it is bringing workers back from a scheduled shutdown at its Kansas City, Missouri, factory to work Aug. 21-22. To boost Focus output, Ford said it is scheduling overtime and adding Saturday shifts at its plant in Wayne, Michigan.

Ford boosted production by 16 percent to 445,000 vehicles in the three months ended June 30 to take sales from domestic rivals General Motors Co. and Chrysler Group LLC, two companies that have emerged from bankruptcy.

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