- AIG, Ex-CEO Greenberg Reach Pact to Settle Disputes
- Bank of America CEO Search May Extend Into 2010
- 'Cancer of Fraud' Permeates Health Care System: Critics
- US Mint to Suspend American Eagle Gold 1-Ounce Coins
- Judge Erases Couple's $525,000 Mortgage Payment
- For Many in US, It Will Be a Scaled-Down Holiday Season
- Where Do Pardoned Turkeys Go?
- Jobless Claims Below 500,000, Durable Orders Slip
- Activision Prepares to Double Dip on ‘Modern Warfare 2’
- There's a 'Great Chance' For a Double-Dip Recession: Strategist
- Revenge of the Gangsta Nerds
- Will TCU See The "Flutie Effect?"
- Retail Earnings and Sales to Improve in Q4: Analyst
- Consumers Catching the Holiday Spirit
- It's Beginning To Look A Lot More Riskless
- Crescenzi: Claims Level Suggests End to Job Losses
- Hedge Funds Take Early Lead in Warren Buffett's 'Big Bet'
- S&P Stocks Trading at New 52-Week Highs
MOST SHARED
- Garlic Price Rises Surpass Gold, Stocks in China
- Ritz-Carlton ?Struggling? in the US: President
- New-Home Sales Jump 6.2% To Highest Level in Over Year
- S&P Stocks Trading at New 52-Week Highs
- The Executive Job Search
- Judge Erases Couple's $525,000 Mortgage Payment
- US Plans to Reduce Emissions By 17% Within Next Ten Years
- Activision Prepares to Double Dip on ‘Modern Warfare 2’
- Half of Banks' Losses May Still Be Hidden: IMF Head
- Where Do Pardoned Turkeys Go?
Text Size 
Ford Motor on Friday said it's going to have trouble breaking even by 2009 and slashed third-quarter production by 25 percent.
 |
Gene J. Puskar / AP |
The Detroit auto maker also said it will delay the launch of the new model its top-selling F-150 pickup truck by two months.
Ford lowered its forecast for U.S. industry auto sales for 2008 to between 14.7 million and 15.2 million units, including medium and heavy-duty trucks, from its previous outlook of 15 million to 15.4 million.
The company said automotive results this year would be worse than 2007's and it would be "difficult" for the U.S. auto maker to break even in 2009 because of a deepening slump in U.S. sales.
Due to the tough sales conditions, Ford said it will cut third-quarter production by another 50,000 vehicles, or 25 percent. It now plans to produce 475,000 vehicles. The company also says fourth-quarter production will drop 8 to 14 percent compared with the same quarter last year.
"As gasoline prices average more than $4 a gallon and consumers worry about the weak U.S. economy, we see June industrywide auto sales slowing further, and demand for large trucks and SUVs at one of the lowest levels in decades,'' Ford Chief Executive Alan Mulally said in a statement.
Ford delayed the launch of the new model of its F-150 pickup truck as it tries to work through inventory of the current model. The company now expects the 2009 model to go on sale in late fall.
The forecast for continued losses marks the first significant setback for Ford since Mulally took over as chief executive in 2006.
Both Ford and General Motors have announced plans to shift more of a focus toward cars from trucks and develop hybrid cars amid blazing demand for energy-efficient vehicles but they're struggling to keep up with foreign rivals like Toyota Motor that are way ahead of them.
Ford shares are down 25 percent since their May peak around $8.50; GM shares have plunged 50 percent from a February high near $30 a share.
In Friday's action, Ford [F
Loading...
()
] was off about 6 percent and GM [GM
Loading...
()
] was down 4 percent.
-- Reuters and the Associated Press contributed to this article.
Print
Email
- For nearly three decades, these on-call experts have been dishing advice on how to – and not to – cook turkey.
- Eric Schmidt pledges to create a virtual copy of the Iraq National Museum at Google’s expense.
- Bill Griffeth is taking a leave of absence from CNBC and Power Lunch for a year. Here's a message from Bill.
- More shoppers than ever plan to comparison-shop this season. Who will benefit?
- It may be the most unusual guide to business you'll read.
- How can you get out of debt and back on the road to recovery? Follow these ten steps.
Data is a real-time snapshot *Data is delayed at least 15 minutes