The result will be a 9 percent reduction in 2006 vehicle production compared to 2005 levels.
In an announcemento employees, Chairman and CEO Bill Ford said the decision is part of the company's recently accelerated North American turnaround plan, going on to say that additional actions will be announced in September.
The resulting reduced supply of vehicles will help dealers control inventory carrying costs and reduce the need for sales incentives to move slow-selling models. 2006 production in the first two quarters of the year was already 40,000 units under 2005 levels, due to cuts in truck production levels.
The announcement will mean downtime at plants producing the slower-selling vehicles affected by the plan. Plants and vehicles targeted include: St. Thomas, Ontario (Ford Crown Victoria and Mercury Grand Marquis), Chicago (Ford Five Hundred and Freestyle and Mercury Montego), Wixom, Mich. (Lincoln Town Car), Louisville, Ky. (Ford Explorer and Mercury Mountaineer), Michigan Truck in Wayne, Mich. (Ford Expedition and Lincoln Navigator), Twin Cities, Minn. (Ford Ranger) and all F-Series truck plants (Kansas City, Mo.; Norfolk, Va., Dearborn and Kentucky Truck in Louisville).