Ford makes more Focus and Escapes for ex-clunker owners

DEARBORN, Michigan -- Ford said Thursday it will build more of its popular Focus and Escape models and boost total vehicle production later this year to help dealers restock depleted showrooms.

Ford needs to keep up with demand for its Focus compact and Escape crossover, both ranked as top sellers under the federal government's Cash for Clunkers program. It also wants to maintain a reasonable level of cars and trucks so its dealers won't run short on hot models during the final months of the year.

Cash for Clunkers, which kicked off last month and has revived industry sales for the moment, uses rebates of up to $4,500 to entice drivers to trade in older gas guzzlers for more fuel-efficient vehicles. To be eligible, vehicles must have a combined city/highway fuel economy of 18 mpg or less.

Ford's overall vehicle production will be 2% higher than it expected in the third quarter. It also plans to boost its fourth-quarter output of cars and trucks by 33% from a year earlier.

While funding for the Clunkers program is likely to run dry by September, the company said, the additional vehicles produced in the quarter will go to replenish dealer stocks. Ford is struggling to keep up with demand after paring down inventories earlier this year. Vehicles that roll off assembly lines as part of the production boost should reach showrooms by early September, Ford said.

"That should give us some time to reload before 2010 begins," said George Pipas, Ford's top sales analyst. "Dealers will be dealing with historically relatively low inventories for some time to come."

Pipas said there would probably be some drop-off in sales when the program ends, although Clunkers will have succeeded in providing a small kick-start to the economy.

The automaker, which has steadily been gaining sales since GM and Chrysler took government aid and went through bankruptcy proceedings, reported a year-over-year sales increase of 2.4% in July, the first such jump since November 2007.