Ford Motor Co. slashed its production plans and announced that 10 North American plants will be shut for extended periods much of the rest of the year as it tries to trim costs and deal with slumping sales of its light trucks.
The automaker said Friday the move will result in a 21 percent drop in production in the fourth quarter compared to a year ago, as it makes 168,000 fewer vehicles.
Ford also trimmed third-quarter production by an additional 20,000 vehicles from its previously announced production target, leaving it 78,000 vehicles short of year-ago production.
"We know this decision will have a dramatic impact on our employees, as well as our suppliers," said a statement from Chairman and CEO Bill Ford. "This is, however, the right call for our customers, our dealers and our long-term future."
The already-battered shares of Ford (down $0.28 to $7.89, Charts) were off about 3 percent in midday trading Friday on the announcement. That's because the production cuts will do little to trim costs in the long-term, and are simply an indication of further weakness in the demand for the company's products
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