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Ford North American Production Update

Ford North American Production Update

    DEARBORN, Mich., Sept. 14 Following this week's tragic
events, Ford Motor Company announced reductions in its North
American production plans.  The company has experienced parts shortages
stemming from freight transportation issues, particularly in air-freight
transport and movement of freight through border crossings.  As we work
through this situation, we are focused on assisting the relief efforts, our
employees' peace of mind and maintaining high quality on the vehicles we
produce.
    Additionally Ford Motor Company suspended U.S. and Canadian manufacturing
operations at 11:30 a.m. local time today to allow employees to attend noon
memorial services as part of the Day of Prayer and Remembrance.  Afternoon
shifts at U.S. and Canadian plants will be suspended early so employees can
attend evening vigils.
    While it is difficult to predict the full impact on final production, the
company plans to suspend operations at several assembly plants next week.  The
company's current production plan for the third quarter calls for 810,000-
820,000 vehicles, down 110,000-120,000 vehicles from the prior forecast,
including all units lost this week and expected losses for the rest of the
month.  As a result, third quarter results now will fall short of our previous
forecast for earnings of 10 cents per share before one-time items.
    Employees at St. Thomas, Wayne Assembly, Dearborn Assembly, Atlanta
Assembly and Ohio Assembly have been told to report back to work on Sept. 24.
Wixom employees have been advised that production will be suspended on Monday,
Sept. 17, but may resume as early as Tuesday, Sept. 18.

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