In a way, this is a classic “good problem to have”. An industry rule of thumb is that auto factories break even at 80% of “full capacity”, generally defined as two eight-hour shifts. The further you get above that 80%, the more profitable your factory.
Ford said last fall that its North American plants were running at 114% of capacity, the automaker’s highest level in over 30 years. That means that some are already running around the clock, which is a big part of why Ford’s North American division has been so profitable recently.
But that also means that increasing production will require some expensive investments in new assembly lines.
Ford is already committed to making some of those investments. A new assembly line at the automaker’s plant in Flat Rock, Mich. – where the Mustang is currently made – will begin producing additional Fusions this fall. That could help boost sales of the sedan closer to those of the Camry – currently America’s best-selling car.
But it’s clear that if Ford to increase sales significantly from here, more investments may be necessary.
The article Strong Sales Continue for Ford’s Hot New Models originally appeared on Fool.com.
Fool contributor John Rosevear owns shares of Ford. The Motley Fool recommends Ford. The Motley Fool owns shares of Ford.
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