Ford Cuts Inventories 20% in U.S.

Ford Motor Co. has reduced its U.S. dealer inventories of unsold cars to a 78-day supply this month from 98 days at the end of February, Automotive News estimates. A 60-day supply is considered normal.

Ford cautioned investors and analysts earlier this month that the company intends to keep close control over U.S. inventories by making selective production cuts over the next several months. Carmaking plants are the most likely candidates, because marketwide demand for sedans is weak.

AN notes that Ford idles five assembly plants in North America late last year. But the company also trimmed output of its best-selling F-150 pickup truck in Kansas City, Mo., in January. Supplies of the trucks have dropped to about 97 days from 108 days in the past month.