Ford Cuts Production Costs

Ford Motor Company cuts 20 per cent ahead of scheduled costs in vehicle production and predicted that the industry's sales would be higher than previous estimates.

The production cost reduction policy started because of restructuring of the company.

Ford exceeded its target of removing $200 in costs per vehicle this year but it is going to cut such costs by $700 per vehicle by mid-decade.Last week the company raised its estimates for third-quarter earnings on strong sales in North America.

However there is no common opinion on this as it?s not clear whether it was due to buoyancy in car sales or the result of cost-cutting.

But specialists tend to think that anyway Ford will ultimately require a farther reaching restructuring plan - with far greater lay-offs - in order to place the company on a path to recovery.