Thursday, November 15, 2012

Ford Motor Company (NYSE:F) Wagon To Be Manufactured In Spain

New Transit Connect Wagon for Ford Motor Company (NYSE:F) is headed to showrooms in the US late next year. However the family vehicle would not be made in North America.

The automaker will be manufacturing its family vehicle at Valencia, a hub for its Transit Connect Wagons. This will aid in solving two of the biggest conundrums of the company – glut capacity in struggling Europe and lack of manufacturing capacity in North America.

An automotive forecaster from LMC Automotive, Joe Langley said that there’s not much space although the company tries to squeeze it in if they had to. The volume does not guarantee retooling in North America, particularly with the constraints in terms of capacity.

In North America, Ford is currently operating at a capacity of 114%, as per Jim Tetreault, vice president of North American manufacturing unit. However, in Europe, capacity is nearly 50% of maximum output, as discovered by analysts. Ford has tried hard to match European production so as to meet the rising demands.
Ford already is planning to slash 18% of its capacity in Europe by the end of the year 2014 through the closure of three plants. It will also narrow the capacity gap of about 4,00,000 units, that runs more than 100%.

Langley said that LMC expects quantity of the Transit Connect Wagon, which will be a 5 or a 7 seat automobile hitting sometime during late 2013, will start selling at 40,000 units.

The Dearborn automaker did not mention anything about volume projections at a briefing that took place on Tuesday. It said that the wagon will come with two options for powertrain that would include 1.6 liter EcoBoost engine, features like panoramic roof and three trim levels.

The wagon is slated to debut in Europe next year as the Tourneo Connect. The automaker does not import any other type of passenger vehicles to the US from outside of North America. 

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