Posted on 10/18/2016 8:56:53 AM PDT by Brilliant
[The] US car industry history...suddenly appears to be bombarded with a barrage of bad news: starting with Ford's disastrous August sales when the company admitted "sales have reached a plateau"...one would almost think that a respite from the bad news was in order. One would be wrong.
As a result of slowing demand and declining US auto sales coupled with growing inventory, Ford Motor is halting one of two plants that builds its top-selling F-150 pickup as it idles four factories this month amid slowing U.S. auto sales.
Ford is shutting its Louisville, Kentucky, factory building the Escape and Lincoln MKC sport utility vehicles... Next week, the second-largest U.S. automaker will close the F-150 factory near Kansas City...
The plant closings follow last week’s shutdown of Ford’s Mustang factory in Michigan after sales of the sports car plunged 32% in September.
Contrary to the popular refrain of a strong economy, US auto sales are slowing as many analysts predict the industry won’t match last year’s record of 17.5 million cars and light trucks... Ford CEO Mark Fields has said “We said we expected the overall retail industry to decline in the second half of the year...” “We also said to expect to see some production adjustments in the second half -- this is one of them...”
Meanwhile, Felker said Ford is trying to match production with demand. Inventories have been swelling...
Worst of all, while the rest of the US manufacturing sector has been in secular decline, the auto industry was perhaps the last shining light for battered US manufacturing during the past several years. However, if demand for cars continues to collapse, forcing supply to follow suit, it is only a matter of time before the US manufacturing recession returns with a vengeance...
(Excerpt) Read more at zerohedge.com ...
who can afford an automobile nowadays with all these taxes going to freeloaders and illegal aliens?
No one wants crappy aluminum cars that have been neutered to meet Obama’s CAFE standards.
The aluminum F150 is going to be an albatross around Ford’s neck.
I don’t know about their whole line, but the F150 is expensive as s*^%.
the auto industry was perhaps the last shining light for battered US manufacturing during the past several years
Only because of Sub Prime Auto Loans that happen to be Blowing Up all across America as we Speak.
Agreed. But you need to buy when the industry is hurting. The incentives are better then.
I’ve heard that they plan to open factories in Mexico.
That and $60,000 - $70,000 for a truck... With wages flat for 20 years.... I see all of the new trucks driving around and parked in these working and middle class neighborhoods and think, who in the heck is buying all of these beasties?
Not really news. Ford has always idled plants of vehicles that aren’t selling well. Hubby worked for Ford for 27 yrs. and it has happened before.
This may be ones best chance to buy a car that hasn't been neutered by CAFE standards.
They’re probably running it through their LLC as a business expense, assuming they’ve got the income to make the payment. One of the few perks left to small business owners.
...due to preparing to move the plants to Mexico.
Fact.
The shine has gone off news automobiles and trucks. They cost as much as a small home.
Car repairs are WAY cheaper than car payments.
Says my 2002 PT that still runs and has 80k miles.
This was my FIRST new car ever. Always drove $300 DIY’ers my entire life. No car payments again.
Actually, the part of the article that I edited out says they are also closing their factories in Mexico.
They don't make 'em the way they used to ...
Time for “Cash for Clunkers” II.
The purchase cost of the vehicle, interest, maintenance costs and depreciation can be used to reduce taxable income, assuming there’s enough income to cover those expenses.
Perhaps Berry needs to throw his union buddies another ‘cash for clunkers’ bone....
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.