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Ford pinned its future on an ambitious attempt to persuade Americans to drive smaller, European-style cars, after plunging to its biggest loss ever.
The car maker had to write off billions of dollars of investment in high-tech factories that build gas-guzzling SUVs and pick-up trucks, vehicles which have fallen suddenly out of favour because of the soaring cost of fuel.
The company's shares fell more than 10 per cent on yesterday's miserable financial results, which were worse even than Wall St had feared. Its losses for the three months to the end of June were US$8.7 billion ($11.7 billion), including US$5.3 billion in writedowns of its North American factories and a further US$2.1 billion because the second-hand market for its fleet of SUVs has collapsed.
With petrol prices, unemployment, inflation and mortgage finance costs all rising, vehicle sales have fallen sharply in the US this year, with SUV and pick-up sales sliding most of all.
Ford's chief executive, Alan Mulally, said the company would introduce six European models - including versions of the Fiesta and the Ford Focus - into the North American market.
"We have the right plan to respond to the changing business environment," Mulally said.
- INDEPENDENT
