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Ford Motor Announces Additional Cut Downs

American car maker, Ford Motor, is planning to cut down on vehicle production in the first half of 2007. Ford working on controlling their inventory levels, and the first half of 2007 will see an 8-12 percent cut down compared to the first half of this year, in North America car production. This is not the first time that Ford Motor announced plans for cut downs, and the company previously stated that a 21% cut down in planned for the last quarter of this year as well.

The cut backs are a direct result of slow SUVs demand that the market is experiencing. All major car manufactures are cutting down their production as high inventory levels are becoming an issue. The situation is even graver for auto parts suppliers, and early last week Dura Automotive Systems, a Michigan-based auto supplier, filed a bankruptcy claim and had to go out of business.

Due to raising gas prices, the demand for SUVs has dropped considerably, and car makers are `stuck` with many unsold items. Manufacturing of such vehicles costs a lot of money, and high inventory levels are causing the companies to loss money. By cutting down on production, Ford Motors and other manufacturers are hoping that inventory levels will drop in the upcoming future. Just now, Ford Motor reported a third-quarter loss of $5.8 billion, resulting in a sharp drop in shares value.