Ford boosts production on Clunker demand
The automaker will make 10,000 more vehicles as the government's 'Cash for Clunkers' program strengthens demand.
DEARBORN, Mich (Reuters) -- Ford Motor Co. said Thursday it is increasing production over the rest of the year to meet increased demand spurred by the U.S. government's "Cash for Clunkers" sales incentive program.
Ford said it now plans to build 495,000 vehicles in the third quarter, up 10,000 from its previous forecast. That would mark an increase over year-earlier levels of 18%.
The No. 2 U.S. automaker also set a fourth-quarter production target of 570,000 vehicles, up 33% from year-earlier levels.
The output gains will translate into immediately higher revenues for Ford (F, Fortune 500), the only U.S. automaker to have avoided a federally sponsored bankruptcy. Major automakers book revenue when vehicles are manufactured and shipped to dealers.
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