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Ford cuts production at 5 plants, has big backload of cars including Mustang

DETROIT — Ford said on Tuesday it plans to idle five North American vehicle assembly plants for a total of 10 weeks to reduce inventories of slow-selling models. The plants affected include three assembly plants in the United States and two in Mexico, the company said in a statement. The vehicle models include the Ford Fusion and Lincoln MKZ midsize sedans, the Ford Focus compact car, the Lincoln Continental and Ford Mustang, Ford Fiesta and the Ford Transit van. Ford said the Cuautitlan assembly plant that builds the Fiesta would be idled for three weeks. The Hermosillo, Mexico plant that builds the Fusion and MKZ and the Flat Rock, Michigan, factory that assembles Continentals and Mustangs will be idled for two weeks each. The Michigan Assembly plant that builds the Focus will be idled for one week, and the Kansas City assembly line that builds Transit vans will be down for two weeks. Ford did not give dates for the temporary shutdowns. The factories involved employ more than 15,000 people, according to Ford's website. The company did not say how many of those workers would face temporary layoffs. As of Sept. 1, Ford had 111 days' worth of unsold Mustangs, 87 days' supply of Fusions, and a 103 days' supply of Transit vans, according to Automotive News. Dealers had enough unsold Lincoln Continentals to last 162 days. Automakers aim for 65 to 70 days of inventory of most models. Ford and rival General Motors have wrestled most of this year to rein in high inventories of passenger cars as consumers have shifted to buying pickup trucks and sport utility vehicles. Production cuts slice into revenue, but also could help the automakers avoid deeper price cuts on vehicles they can sell. Reporting by Joe WhiteRelated Video: Image Credit: Reuters Plants/Manufacturing Ford Lincoln Convertible Coupe Minivan/Van Sedan ford transit inventory flat rock kansas city assembly plant hermosillo

Ford sued over alleged 3.5-liter EcoBoost defects

Three Ford owners from Ohio have filed a lawsuit against the automaker over defects that they allege exist within the company's twin-turbocharged 3.5-liter V6 EcoBoost engine. Automotive News reports that the lawsuit claims the engine "contained serious latent design, manufacturing, or assembly defects." Those defects, the suit claims, cause the vehicle to shake, misfire and lose power quickly.
Two of the plaintiffs, a married couple, own a 2010 Ford Taurus SHO, and allege they experienced a loss of power and stalling, while the third, an F-150 owner, claims he lost power while accelerating. In addition to the Taurus SHO and F-150, the 3.5-liter V6 EcoBoost engine is also available in the Ford Flex, Explorer Sport and Lincoln MKT and MKS. Other three- and four-cylinder EcoBoost engines are not included in the suit. There have been no recalls associated with 3.5-liter V6 engine, and the National Highway Traffic Safety Administration is currently not investigating the matter.
The plaintiffs, however, claim Ford has known about the problem, citing several technical service bulletins issued to dealers of the F-150 that suggest possible fixes. Ford had no comment for Automotive News, saying that it's yet to review the lawsuit, which was filed last Friday in Columbus, OH.

Toyota again claims Corolla outsold Focus worldwide

Toyota isn't convinced the Ford Focus was the best-selling nameplate globally last year. Bloomberg reports that for the second time in seven months, both Toyota and Ford are laying claim to the title. Ford cites R.L. Polk & Co. data that says the automaker moved some 1.02 million Focus models in 2012 compared to just 872,774 Toyota Corolla units. But Toyota says the actual figure is closer to 1.16 million Corolla models.
Last year, Ford said it took the sales crown through the fist half of 2012 based on information from IHS Automotive, but Toyota pointed out those numbers left out models like the Corolla-based Matrix and Auris, as well as the Corolla Fielder and Scion xB-based Corolla Rumion. Whether or not Toyota's belief that all these cars should be counted in the Corolla bucket is accurate or not is seemingly up for debate... as is the question of why it matters so much to both parties.
This time around, Ford is holding the line that the Focus is the "best-selling nameplate," with Erich Merkle, a US sales analyst with Ford saying the company's figure is, "a pure number that is verified by a third party." Toyota, meanwhile, has requested clarification from Polk.