Carmakers short on compacts
TRAVERSE CITY, Mich. — Under normal circumstances, it would take Ford about a month to replace a Focus sold at one of Richard Bazzy's two Pittsburgh-area dealerships.
Today, with customers across the country clamoring to trade in old gas guzzlers under the "cash for clunkers" program, Bazzy said Ford can't tell him when it will send him the bulk of the 50 compact cars he needs to replenish what he sold in the two weeks since the program began.
"I do not have a definite, acceptable answer to that," said Bazzy, who maintains he could sell 200 more Focuses if he could get them. "It's killing me."
Bazzy, like many dealers for just about every automaker, is worried he won't be able to get cars to take advantage of the second installment of clunker cash the Senate approved Thursday night.
He's got only two Focuses left and said Ford told him it will ship only six more within the month. He's complained to his regional manager to no avail and said the clunkers program has cleaned out the region's inventory.
Annette Sykora, who runs two Ford dealerships near Lubbock, Texas, is running into the same problem. She was conservative, keeping her inventory lean because of the depressed market. Like many dealers, she didn't expect the high showroom traffic and demand from the clunkers program.
She's happy for the increased business, even though she's sold all six Focuses she had. She's also out of midsize Fusions, and after today, will have no more Ford Escapes or Mercury Mariner midsize sport utility vehicles.
If the renewed program expires Labor Day weekend, she won't be able to take part unless she sells vehicles before they arrive or somehow gets them from nearby dealers.
Ford is trying to ramp up production of the Focus, which ranks No. 2 on the purchase list of those trading in clunkers. The Toyota Corolla is first.
The clunker program offers up to a $4,500 rebate to those who trade in older, less-efficient vehicles for new ones that get better gas mileage.
Ford had only a 25-day supply of Focuses at the end of July, according to Ward's AutoInfoBank. Overall, its 48-day vehicle supply was at the industry average for automakers. Nationwide, Ford had only 21,000 Focuses in stock, down from 38,000 at the start of July.
George Pipas, the company's top sales analyst, said Ford is working as hard as it can to crank up factories to meet demand, but said no automaker can turn on a dime and make more cars instantly. With thousands of parts made by hundreds of supply companies, it takes a month or longer to gear up factories, he said.
August's production schedule was set last month and can't be changed in 30 days, but Ford is working to raise output in September, Pipas said.