Ford Plans North American Production Cuts

Ford Motor Co. said Thursday it will cut North American vehicle production for the rest of this year and that it expects to break even next year, delaying a previous profit target, Bloomberg reported.

The No. 2 U.S. automaker will cut North American production 15% from a year earlier this quarter, by as much as 20% in the third quarter and up to 8% in the fourth quarter, Bloomberg said.

The company plans to idle one truck plant that makes sport utility vehicles and reduce shifts at another that makes pickups, amid rising fuel prices and falling demand, Bloomberg said.

Ford said higher costs for raw materials such as steel, along with rising gasoline prices have hurt sales, Bloomberg reported.

The revised outlook is a setback for Chief Executive Officer Alan Mulally, who was recruited to the company two years ago and had pledged to return it to profitability in 2009, Bloomberg said.