Ford Motor Company on Thursday said it is cutting production of large trucks and sport utility vehicles (SUVs) as higher pump prices lead consumers toward more fuel-efficient cars.
Ford, the second-biggest US automaker, also said it was revising downward its near-term profit outlook for North America as well as cutting costs “to respond to the rapidly changing business environment in the US.”
“Unless there is a fairly rapid turnaround in US business conditions, which we are not anticipating, it now looks like it will take longer than expected to achieve our North American Automotive profitability goal,” Ford president and chief executive Alan Mulally said in a statement.
“Overall, we expect to be about break-even companywide in 2009 — with continued strong results in Europe and South America,” Mulally said.
Ford said this year's production of large trucks and SUVs will be reduced “as gas prices soar and customers move more quickly to smaller and more fuel-efficient cars and crossovers.”
At the same time, it is increasing output of smaller models such as the Ford Focus, Fusion, Edge and Escape, Mercury Milan and Mariner, as well as the Lincoln MKZ and Lincoln MKX.
Ford now plans to produce 690,000 vehicles in North America during the second quarter, a further reduction of 20,000 units from previously announced planned production levels and a decline of 15 percent from the second quarter of 2007.
The company plans to produce between 510,000 and 540,000 units in the third quarter, down 15 to 20 percent from the same period last year.
Fourth-quarter production is expected to be between 590,000 and 630,000 units, down 2.0 to 8.0 percent from year-ago levels.
Ford, which in 2007 lost the number-two spot in its home market for the first time since 1931 to Japan's Toyota, posted a first-quarter profit of 100 million dollars in April in a surprise turnaround after heavy losses.
