Decline in Sales Forces Ford to Continue Restructuring

Internationally acclaimed auto maker Ford Motor Company plans to carry on its various streamlining scheme through out the last quarter of the year. This plan came into view as the company experienced a significant decline in sales last August.

According to analysts, the approximately 14 percent drop in sales in the month of August was primarily due to the ascending credit payments. Aside from this, the existing commotion in the fiscal market fueled the sales plunge.

Company reports showed that Ford car sales for August went down about 33 percent, as compared to the sales of the same month in 2006. Moreover, the sales of Ford light trucks plummeted, making a record of only 152,572. The month of August also experienced a 13 percent downslide in individual retail market and day by day rental sales fell about 44 percent.

Ford is planning to produce 640,000 automobiles in the fourth quarter of this year to exceed the production of the same point last year by six percent. The company also expressed desire to hit a 640,000 production for the third quarter.

Exerting great effort to restructure its product line and the entire business, Ford Motor Company declared that it would put forward cash incentives as big as $1,000 on 2007 and 2008 Ford models that will top the sales and rent proposals, beginning October 1.

According to analysts, the considerable decrease in the sales of Ford vehicles signals the possibility that the auto sales in the United States in general will experience a dwindling effect. Forecast from the automotive analytic group CSM Worldwide stated that 2007 U.S. auto sales will reach only 16.2 million, which are 350,000 less of the sales last year.