Ford Extends Plan to Make Small Pickup

Ford Motor Co. plans to keep open for an additional two years a small-pickup plant in St. Paul, Minn., that had been slated to close in 2009, according to two people briefed on the company’s plans.

The move is expected to be announced Thursday as part of a plan to overhaul U.S. plants so Ford can make more cars and small vehicles and fewer large trucks and sport-utility vehicles, these people said.

Ford will also report its second-quarter earnings Thursday. Analysts expect the company to report a substantial loss. The Dearborn, Mich., auto maker has had massive declines in sales for its full-size pickups and SUVs, mainly as a result of rising fuel prices and a softening economy. The company has shut down truck production in several plants for most of the summer and delayed the launch of its 2009 F-150 pickup by two months until November.

Relatively consistent demand for Ford’s small pickup, the Ford Ranger, is one of the few bright spots in the dismal truck market. While sales of the Ford Explorer SUV fell 33.2% and its F-series pickups dropped 22.7% for the first half of the year, Ranger sales declined only 3.9% for the same period. As part of the company’s cutbacks first announced in 2006, Ford said it would shutter the Twin Cities Assembly Plant, which makes Rangers, by 2008. In 2007, the company revised its plans, saying the small-truck plant would close sometime in 2009. Now the life of the plant, while working with a single shift, has been extended until 2011.

News of the plant’s life extension will coincide with an announcement about a broad reshuffling of Ford’s product portfolio. The auto maker plans to convert three truck plants to car production as demand in the U.S. market reacts to $4-a-gallon gasoline prices.