For the remaining year production will be cut 15% this quarter, between 15 and 20% in the third quarter, and between 2 and 8% in the fourth. The cuts will affect its pickup truck and SUV models, however, production volumes for cars and crossovers will increase in the coming year.
Falling sales isn’t the only negative impact on Ford’s bottom line. The carmaker’s profits are also being hit by high commodity prices and increased development costs for more fuel-efficient vehicles to meet upcoming CAFE fuel-economy regulations, reports The Detroit News.
“Unless there is a fairly rapid turnaround in U.S. 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 CEO Alan Mulally said in the statement. “Overall, we expect to be about break-even companywide in 2009 – with continued strong results in Europe and South America.”