Ford Announces Big Shift to Small Cars

U.S. auto giant Ford Motor Co. said Friday it would trim truck production while gearing up production on small cars and crossovers.

Ford said it was responding to continued deterioration in the U.S. business environment and the accelerated shift away from large trucks and SUVs.

Double-punched by a slow economy and rising gas prices, we see June industry-wide auto sales slowing further and demand for large trucks and SUVs at one of the lowest levels in decades, Ford President and Chief Executive Officer Alan Mulally said in a statement.

Ford said it expected U.S. car sales to fall to between 14.7 million and 15.2 million vehicles in 2008. In response, Ford said it would reduce third- and fourth-quarter production by 90,000 vehicles and delay introduction of the 2009 F-150 pickup truck by two months.

Ford will cut one shift in SUV and truck plants in Kansas City, Mo.; Louisville, Ky.; and Dearborn, Mich., and idle the Michigan Truck plant for nine weeks beginning Monday. It will also retool its Cuautitlan Assembly Plant in Mexico for Fiesta production.

Ford plants producing the Edge, Escape, Flex crossovers and other smaller models will add a third shift, the statement said.