DETROIT, Jan 15 (Reuters) - Auto suppliers are adding to their production capacity in 2013, allowing companies like Ford Motor Co to better meet demand for cars and trucks, Ford Chief Executive Alan Mulally said.
Last year, the second-largest U.S. automaker lost market share in the U.S. automotive market, partly due to Ford’s constrained production capacity. Mulally said the company was also affected by similar shortfalls among auto suppliers, who cut capacity sharply during the financial downturn.
“The issues that we’re seeing are mainly related to them being able to come back up,” Mulally told reporters after delivering remarks at a automotive conference on Tuesday. “But I think we’re removing the constraints now.”
Ford’s U.S. market share fell to 15.5 percent in 2012 from 16.8 percent in 2011. Automotive consulting firm Polk forecasts Ford’s U.S. market share will fall further, to 15 percent this year as the market grows increasingly competitive.
Mulally spoke at the Automotive News World Congress, which comes during the same week as the Detroit auto show, one of the industry’s most anticipated events of the year.