2009 F150 delayed due to lack of demand

DEARBORN, Michigan — Ford Motor said Friday it will delay by two months the introduction of the redesigned 2009 Ford F-150, because an industry-wide fall-off in demand for full-size pickups means dealers likely will take longer to sell down inventories of the current 2008 model.

Ford also confirmed plans to replace the current Focus compact in North America with a new European-designed model in late 2010. The second-generation European Focus, known internally as C346, will be a truly global project, with production sourced in Germany, Spain, Russia, China, India and Argentina, among other locations. Production for North America will likely be sourced from Mexico, according to suppliers familiar with Ford's plans.

Ford confirmed the next-generation Focus "will be common with Europe, South America and Asia Pacific." It said the 2011 Focus will achieve "excellent fuel economy...through new highly efficient direct-injection engine technology and a new advanced six-speed transmission."

The current U.S. Focus, which carries the internal code C170, dates to early 1999. It received a substantial face-lift for model year 2008, but its basic underpinnings were designed and engineered more than 10 years ago.

The new European-designed Fiesta subcompact, another global Ford vehicle, is slated to go into production in Mexico in early 2010. Ford has been displaying versions of the car at auto shows around the world.

While the U.S. launch of these new small cars is still 20-30 months away, Ford is taking some immediate — and sometimes drastic — steps to slash production of large trucks, SUVs and sedans, while scrambling to increase production of smaller vehicles.

The company on Friday said it will make substantial cuts in North American production in the third and fourth quarters, most of which involves assembly of larger vehicles.

It said production of the redesigned 2009 F-150 will begin in August in Kansas City and in September in Dearborn, about two months later than originally scheduled. SUV and heavy-duty truck plants in Michigan and Kentucky will get drastic cutbacks, as will a plant in Chicago that makes the full-size Taurus and Sable sedans, as well as the new 2009 Lincoln MKS.

Regarding the changes, Ford CEO Alan Mulally observed: "We view the move to smaller, more fuel-efficient vehicles as permanent, and we are responding to customer demand. In the near term, we are adjusting production to the actual demand — increasing small cars and crossovers and reducing large trucks and SUVs. For the long term, we are moving fast to introduce more small cars, crossovers and fuel-efficient powertrains — including more hybrids — and we will adjust our manufacturing facilities to match our updated product lineup."

What this means to you: As old as it is, Ford's U.S. Focus is attracting many more customers this year, in large measure because it is one of the most fuel-efficient models in the company's North American portfolio. — Paul Lienert, Correspondent