Ford's Atlanta and Chicago Plants at Center of Speculation About Expansion and New Vehicles

Ford's plants in Atlanta and Chicago are back in the spotlight as speculation grows about possible expansion and new vehicles. Bloomberg News reported that Ford may build a new type of minivan for Mercury and Volvo in Chicago, while consolidating Taurus production in Atlanta. This move is part of Ford's efforts to save costs and tap into new niches in the market. The company's plans are not yet confirmed, but analysts believe that the shift could have significant implications for Ford's sales and market share.

Key Takeaways:

• Ford is considering building a new type of minivan for Mercury and Volvo in Chicago, which would be derived from parts engineered for the Volvo S80 sedan.
• The company may consolidate Taurus production in Atlanta, potentially cutting production of its flagship car.
• Ford is trying to boost volume by targeting additional niches with its Mercury and Volvo products.
• The change could impact sales, as the current Taurus and Sable will start looking "pretty old" by the 2004 model year, according to analyst Brad Fox.
• Sales of the Taurus and Sable may fall even further, potentially due to increased competition from redesigned models from Toyota, Honda, and Nissan.

Statistics:

• Ford is expected to sell about 480,000 Tauruses and Sables this year, about half of them from Hapeville.
• Sales of the Taurus and Sable peaked at over 525,000 in 1992.
• The current Taurus and Sable will start looking "pretty old" by the 2004 model year, according to analyst Brad Fox.
• The Toyota Camry, Honda Accord, and Nissan Altima will be completely redesigned by the time the reported changes are likely to take place.

Sources:

• Bloomberg News
• Alan Baum, analyst with IRN
• Brad Fox, analyst with AutoPacific Group