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Ford is shutting down its Mustang factory for a week after suffering a major sales decline

Oct 11, 2016, 20:03 IST

Ford

Ford is halting production at one of its factories for one week after experiencing a massive sales decline for its iconic sports car, the Ford Mustang.

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Ford's Mustang suffered a 32% sales decline in September, prompting the automaker to shut down its Mustang factory in Michigan for a week, Bloomberg's Keith Naughton first reported. The Mustang plant employees 3,702 workers who will be paid during the shutdown as part of the automaker's labor agreement.

The Michigan plant makes Mustangs and Lincoln Continentals and will resume production on October 17.

Kelli Felker, a spokesperson for Ford, told Business Insider that the factory has been idled in order to "continue to match production with demand." She added that "Mustang remains the top seller in its segment in total and retail sales."

On a sales call in August, Ford spooked investors when it said US car sales have peaked. Ford executives said it would be "really tough" to match the sales performance of the same period in 2015.

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Ford reported an over-the-year decline in September of 8.1%.

NOW WATCH: Ford is now accepting applications to buy its most expensive car ever

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