Ford truck plant to raise chassis-cab production
Ford Motor Company plans to boost production of vehicles that are
converted into recreational vehicles, ambulances and other commercial
trucks by 30 % next year at its Kentucky Truck Plant on Chamberlain
Lane.
"We're always screaming for more production out of Kentucky Truck.
Next year, we're going to get it," said Joe Castelli, director of
commercial trucks at Ford. The added production isn't expected to add
to employment at the plant, but it could mean fewer one-week layoffs.
About 80 % of the 4 Lakh vehicles produced in eastern Jefferson County
each year are pickups. The remaining 20 % are chassis-cab models,
trucks that ship with only frame rails extending beyond the cab rather
than a truck bed.
Castelli said demand for chassis-cab trucks is up about 9 % for Ford
this year, and he expects big numbers next year when the automaker
releases its 2008 models.
While housing starts have slipped, affecting builders, he said most of
the company's other commercial customers have increased orders.
The Recreational Vehicle Industry Association is predicting its
strongest sales year since 1978, and utilities continue to order new
cherry pickers and other commercial vehicles.
New creature comforts on the 2008 models, such as navigation systems
and satellite radio, should make Ford's trucks more popular with
delivery companies when those trucks go on sale in January, Castelli
added.
"Between that and the new diesel engine coming up, we have a lot of
arrows pointing in the right direction for us," he said, referring to
a 6.4-liter diesel engine that will go into many of the chassis-cab
models.
Ken Vieth, co-principal of Americas Commercial Transportation Research
Company in Columbus, Ind., said demand for large tractor-trailers has
been growing steadily since a sharp drop-off following the Sept. 11,
2001, terrorist attacks. And sales of all commercial trucks have been
strong this year.
"It's a good area for Ford to be in right now," Vieth said of the
chassis-cab trucks. "There's no one application for them. They're used
in all kinds of applications."
In addition, Castelli said commercial trucks are profitable.
Prices for F-350 chassis-cab models range from about $23,000 to
$38,575, about $100 less per vehicle than pickup versions. At the
F-450 level, prices range from $27,380 to $42,350 and at the F-550
level, prices run $30,405 to $45,325, according to Ford's commercial
trucks Web site.
Castelli said at the chassis-cab level, 75 % to 80 % of the trucks
sold are the bigger F-450 and F-550 models.
"It's a very profitable truck, not only for Ford Motor Company, but
for our dealers as well," Castelli said.
The increase in production should not mean any changes in employment
for Kentucky Truck. The 5,400-worker plant has had several down weeks
this year as Ford has struggled to cut inventories of pickups, meaning
it has excess capacity to handle any increases.
The automaker is still setting 2007 sales goals, but Castelli said
Ford is hopeful that the redesign of the truck line will lead to
higher pickup sales next year in addition to the planned increases in
chassis-cab models.
Source: courier-journal.com
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