Though the US Senate is poised to provide more money for the popular cash for clunkers program, Ford Motor Company isn’t ready to commit to raising production just yet.
Ford Chief Financial Officer Lewis Booth told TheDetroitBureau.com that the federal incentives, which range up to $4,500 have made it difficult to forecast demand in an industry that has been operating at its lowest levels in three decades. The challenge is to decide whether there will be a short-term blip, or a longer-term boost that would require Ford to increase production, the executive said, during a dinner at the annual Management Briefing Seminars, in Traverse City, Michigan.
“We’re not going to complain about a program that helps people buy cars,” Booth said. But it has made planning more difficult because Ford and others in the industry are still unsure if the increase in demand is only a temporary spike in response to the government incentives or the start of more sustained increase in sales.