Ford Motor Company (F): Can This Automaker’s New Fusion Knock off the Camry?

But it has a downside. With plants already running around the clock, Ford can’t make many more Fusions than it is already making – at least, not easily. Ford U.S. sales chief Ken Czubay told reporters last week that strong sales and strong continuing demand for the Fusion in places like California and Florida could mean short supplies of the hot sedan in coming months.

Adding production means expensive investments in additional production lines, investments that Ford has been reluctant to make until it’s sure it can sell the extra cars (and until it’s sure that its suppliers will be able to keep up).

The good news is, with the Fusion, Ford Motor Company (NYSE:F) is already preparing to step up production.

A $555 million investment to close the gap
Ford has already announced that it is adding a production line to build the Fusion at its Flat Rock, Mich., plant, where the Mustang is currently built. That isn’t a cheap move: Ford is spending $555 million to install new tooling and facilities at the Flat Rock factory, and it’s hiring 1,200 new hourly workers to staff the new production line. The production line should be up and running this fall.

These are big investments, but they’re necessary ones if Ford Motor Company (NYSE:F) is to realize the potential of its latest hit product.

The article Can Ford’s New Fusion Knock off the Camry? originally appeared on Fool.com.

Fool contributor John Rosevear owns shares of Ford and General Motors. Follow him on Twitter at @jrosevear. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford.

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