Ford can't keep up with auto demand

[atlaw4u]

Mulally says automaker will add shifts, but not plants, to increase production

David Shepardson - DETROITNEWS - May 31, 2012

Ford Motor Co. President and Chief Executive Alan Mulally says his company can't build enough vehicles to meet demand.

Mulally said Wednesday Ford will continue boosting production this year, acknowledging that crimps in the parts supply chain are among the challenges that will prevent it from making as many cars and trucks as it wants — at least in the short run.

"We're going to increase production through the rest of the year," Mulally told reporters after making the rounds among Michigan's congressional delegation and other key Washington officials on several issues.

"We have limits on our production as we're going up, because as we restructure the entire business, we're bringing along the entire supply chain, so we really can't make as many vehicles as people want right now."

Ford and other automakers are adding shifts, tweaking work schedules and boosting production to meet North American demand.

"Within the next two quarters," Mulally said, "we'll be adding all the third shifts and the extra production so by the end of the year, we'll be able to produce the amount of vehicles that people want.

"But we'll take a hit in the near term — just because we're limited in production."... [Read More]

[Indigo]

God forbid that any "American" company actually hire American workers in order to boost manufacturing capacity. We can't have that, since hiring Americans might shave a few tenths of a percent off of 10-digit executive bonuses.

[chilimac02]

Originally Posted by Indigo

might shave a few tenths of a percent off of 10-digit executive bonuses.

The real question is why stockholders, I.e. voters, allow those bonuses to be written into executive contracts. The contract is what drives the bonus. It is a garunteed amount of pay if certain criteria are met.

I usually vote against those things with my stock shares.

[herm]

feast or famine manufacturing

[wick1ert]

I was really surprised more share holders didn't follow the ones for the bank I work at, when they rejected the CEOs pay package a month or so ago.

That said, I'm not against increasing production at the existing plants. It makes more sense than opening a new plant right away to do it. A new plant comes with a lot more expense involved than adding shifts at existing ones. To me, a new plant should be your last step to increasing production, once you've essentially maxed out existing plants and still aren't keeping up with demand.

There's a lot more downside to opening a plant too quickly and too early than there is to adding shifts then adjusting those to properly balance supply & demand.

[herm]

Manufacturers like to run their car factories with two shifts, it there is demand they will run a third shift but they cant keep it going indefinitely.

[WriConsult]

What does it do to build quality when an automaker adds a third shift to a factory, having people slapping cars together at 4am?

[herm]

There is also the issue of plant maintenance

[EdwinTheMagnificent]

having people slapping cars together at 4am?

Many folks (not myself) actually LIKE working those hours. I think that cars built on the 1st or 2nd shifts are sometimes "slapped together", also. It would be interesting to know exactly when our new cars were built. Oh, and please give us the names and email addresses of those people who so lovingly and carefully assemble them.

[herm]

Unlike the good ol' days, the Big 3 keep track of quality and who did what..