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Subject: Ford's US capacity utilization lowest in 2005-report

Author: ScottR@LAP

[ Next Thread | Previous Thread | Next Message | Previous Message ] Date Posted: 12:56:25 01/18/06 Wed Ford's US capacity utilization lowest in 2005-report Wed Jan 18, 2006 12:55 PM ET DETROIT, Jan 18 (Reuters) - Ford Motor Co.(F.N: Quote, Profile, Research) had the lowest capacity utilization in North America last year followed by larger rival General Motors Corp.(GM.N: Quote, Profile, Research) , Ron Harbour, president of Harbour Consulting, said on Wednesday. Ford utilized only 79 percent of its total North American production capacity in 2005, while GM used 87 percent, Harbour told an automotive conference in Dearborn, Michigan. Significant market share loss, overly optimistic sales projections, and restrictive labor agreements have led to the overcapacity predicament for GM and Ford, Harbour said. In sharp contrast, the big three Japanese auto makers -- Toyota Motor Corp.(7203.T: Quote, Profile, Research) , Honda Motor Co. Ltd. (7267.T: Quote, Profile, Research) and Nissan Motor Co. Ltd. (7201.T: Quote, Profile, Research) -- all utilized over 95 percent of their production capacity in North America. Toyota led the industry with a 111 percent utilization, followed by Honda and Nissan at 97 percent. DaimlerChrysler AG's (DCXGn.DE: Quote, Profile, Research) Chrysler Group, which was the lone U.S. auto maker to see a sales increase in the U.S. market last year, used 93 percent of its North American capacity in 2005, according to Harbour. Japanese auto makers have been relentlessly gaining U.S. market share at the expense of U.S. auto makers. GM and Ford, each facing a deepening financial crisis, are in the process of fixing their North American operations. GM said it will shrink capacity in the region by slashing 30,000 jobs and closing 12 facilities. Ford -- which ended 2005 with a market share of 17.4 percent, the lowest level since the late 1920s -- has said it will reveal its list of plant closings and blue-collar layoffs on Jan 23. Harbour declined to comment on how many assembly plants Ford needs to close to achieve maximum capacity utilization or which plants are likely to be on Ford's shuttering list. © Reuters 2006. All Rights Reserved. [ Next Thread | Previous Thread | Next Message | Previous Message ]

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NEW	Nick	17:15:47 06/13/06 Tue