Ford revs up production, market share

[Blue Oval Guide]

Ford Motor Co. is boosting production for the second time this quarter -- an action in sharp contrast to the factory shutdowns taking place at its bankrupt cross-town rivals.

 

But General Motors Corp.'s bankruptcy filing, which will eliminate much of that company's debt, also creates new challenges for the Dearborn automaker, particularly with the financing of its vehicles.

 

Ford, which will announce today that it is increasing its North American plant output by another 10,000 vehicles, is gaining market share as customers shy away from GM and Chrysler LLC, and it stands to gain more as GM moves to eliminate or sell its Pontiac, Hummer, Saturn and Saab brands. Chapter 11, however, allows those companies to eliminate much of their crippling debt, close dealerships in overcrowded urban markets and secure more favorable terms from the United Auto Workers.

 

Ford has addressed some of its issues outside of bankruptcy court. In March, the automaker renegotiated the terms of its UAW contract and convinced bondholders to forgive billions of dollars of debt for pennies on the dollar. But bankruptcy will allow GM and Chrysler to do more.

 

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