Ford to boost sales outlook, sees recession ending

Ford Motor Co., benefiting from the so-called cash-for-clunkers government incentives, is increasing its outlook for industrywide U.S. auto sales this year as the carmaker sees signs that the recession is ending.

The forecast will rise from the company's current 10.5 million to 11 million vehicles, which includes about 200,000 medium and heavy-duty trucks, Ellen Hughes-Cromwick, Ford's chief economist, said in an interview today. The Dearborn, Michigan-based company is waiting for final results from the federal program before giving its revised figure, she said.

"We're seeing a recovery, sales should be picking up, we'll see some modest tailwinds as we get through this second part of the year," Hughes-Cromwick said. "We've hit the bottom and the economy has stabilized and poised for some modest improvement."

Ford, the only major U.S. automaker to avoid bankruptcy, has been helped by demand for its Focus small car and Escape sport-utility vehicle, which have been among the top sellers in the federal program. The government is providing credits of as much as $4,500 to new-vehicle buyers who trade in older, less fuel-efficient models to be scrapped.

Ford estimates that the clunkers program will generate 750,000 U.S. vehicle sales, three times what the company originally expected, Hughes-Cromwick said.

The second-largest U.S. automaker is raising production in North America by 26 percent in this year's second half, to 1.1 million vehicles. Ford reported a 2.3 percent increase in U.S. sales in July, its first monthly gain since November 2007.