Ford to boost production as it gains U.S. market share

Ford Motor Co. says it will increase production after it managed to boost its market share to the highest point in three years due to the popularity of its new models.

Ford had slashed production in the wake of a collapse in auto sales last fall amid a financial crisis and deepening recession. But the automaker said sales were improving even as May sales were down 24 percent from a year earlier.

The automaker noted that its May sales of 155,954 vehicles were up 20% from April and were higher than any month since July 2008.

Ford said it had managed to reduce its inventories to a 56 day supply of 350,000 vehicles, down 41,000 from the end of April and 210,000 vehicles lower than a year ago.

Ford also announced plans to build increase production to 460,000 vehicles in the third quarter, an increase of 42,000 vehicles compared with third quarter 2008.