Ford Motor Co. said Tuesday it will increase production after it managed to boost its market share to the highest point in three years due to the popularity of its new models.
Ford had slashed production in the wake of a collapse in auto sales last fall amid a financial crisis and deepening recession.
But the automaker said sales were improving even as May sales were down 24 percent from a year earlier.
The automaker noted that its May sales of 155,954 vehicles were up 20 percent from April and were higher than any month since July 2008.
“At Ford, the future is now,” said Ken Czubay, Ford vice president of sales and marketing.
“New products account for 50 percent of our sales, and demand for these products is driving our market share gains.
“Even as the competitive environment intensifies, Ford’s relentless pursuit of quality, fuel efficiency, smart technology and appealing designs is winning new customers.”
Ford said it had managed to reduce its inventories to a 56 day supply of 350,000 vehicles, down 41,000 from the end of April and 210,000 vehicles lower than a year ago.
“Given tightly controlled inventories and the strength of its new products in the market, Ford is increasing second quarter North American production by 10,000 vehicles to 445,000,” Ford said in a statement.
Ford also announced plans to build increase production to 460,000 vehicles in the third quarter, an increase of 42,000 vehicles compared with third quarter 2008.
Ford’s year-to-date sales were down 37 percent at 620,303 vehicles.
