Ford to Resume Production of T-Bird

Ford Motor Co. said Wednesday that it is resuming production of the Thunderbird convertible and Lincoln LS sedans today but will not ship finished T-Birds until it gets replacement parts from a supplier.

The world’s second-largest auto maker has been counting on the revived, retro-style Thunderbird to give it a morale boost in a punishing year of declining sales, shrinking profit and an expensive recall of Bridgestone/Firestone Inc. tires.

The production line had stopped Aug. 15, after Ford found that the V-8 engines used in the T-Bird and some LS models were overheating. The problem was traced to a flawed hydraulic cooling fan.

Ford spokesman Ed Lewis said the factory in Wixom, Mich., will restart today, even though the auto maker still did not have replacement parts from its unidentified supplier. He said Ford will not ship finished cars to dealers until it gets the new parts, which are expected in a few days.

Ford also confirmed that it has canceled this year’s bonuses for Chief Executive Jacques Nasser and its 6,000 top executives, after the company’s first quarterly loss from operations in nine years.

The decision to eliminate the bonuses, which are based on worldwide earnings, was disclosed in an Aug. 1 memo and reported Wednesday by the Detroit News.

Last year, Ford set aside $442 million for senior executive bonuses, including $7.7 million for Nasser, according to its proxy statement. The decision marks the first time the company has skipped bonuses since 1992.

Forgoing the payouts will make it easier for Ford to seek price breaks from suppliers or pay shareholders a smaller dividend, investors and analysts said.

On Wednesday, Ford shares fell 13 cents to close at $20.19 on the New York Stock Exchange.

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Reuters and Bloomberg News were used in compiling this report.