Ford, citing demand, to boost production

The Detroit News (San Francisco) - Ford Motor Co. officials said today the company will boost first-quarter production for the U.S. market by 13 percent, to 555,000 vehicles, and is considering adding additional shifts.

Company officials led by Ford CEO Alan Mulally told hundreds of dealers attending the National Automobile Dealers Association convention here that the Dearborn automaker is cranking up its assembly lines to get more hot-selling vehicles, such as the redesigned 2011 Ford Explorer, into dealer showrooms.

There's just a single-digit day supply of 2011 Explorers. The vehicle, built in Chicago, was named North American International Auto Show's "truck of the year" last month in Detroit.

"You should expect continued increases as the year goes on," Ken Czubay, Ford's vice president for U.S. marketing, sales and services, told reporters attending the dealer convention.

"We are running flat out right now."

Czubay said Ford "told the dealers we're committed" to studying adding more shifts, but "we're not going to oversupply."

Ford's retail demand was up 27 percent in January, and its total sales — including fleet sales — were up 13 percent last month over January 2010.

"We're trying to catch up to what customer demand is," said Jim Farley, Ford's group vice president, global marketing, sales and service. Many new vehicles, he said, are in short supply.

Ford told its dealers it will give them $50 for every vehicle with Sync and $75 for every vehicle with My Ford Touch, the automaker's onboard communication and information systems. The incentive is to help "them with technology delivery," Czubay said.

The allowance starts immediately and dealers will get details later this week. Dealers can use the money to hire "geek squads" or hold clinics for new buyers to learn how to use the technologies.