DETROIT — Fast-rising gas prices claimed their latest victim Thursday: Ford Motor Co. dropped its goal of becoming profitable by 2009 and said it will cut production of trucks and sport utility vehicles through the rest of this year.
It was a warning to the rest of the beleaguered U.S. auto industry, which is facing its worst sales in more than a decade.
Dearborn, Mich.-based Ford didn’t rule out layoffs or plant closures as it retrenches in a slumping industry, saying it would release more detail about its cost-cutting efforts in July. Ford cut its forecast for U.S. light-vehicle sales this year to between 14.7 million and 15.1 million, down from 17 million as recently as 2005.
If sales drop as low as 14.7 million, it would be the slowest year for U.S. vehicle sales since 1993, according to Ward’s AutoInfoBank.
Ford said it will cut North American production by 15 percent in the second quarter, 15 percent to 20 percent in the third quarter and 2 percent to 8 percent in the fourth quarter. The cuts will primarily affect pickups and SUVs, whose sales have plummeted because of rising gas prices, the weak economy and the slowdown in new home construction.
Production cuts hurt automakers’ revenues because the companies book vehicles as sold when they leave the factory.
“We all would like the basic business environment to not have deteriorated, but clearly the most important thing we can do for the long-term success of the Ford Motor Company is deal with this reality,” said Alan Mulally, Ford president and chief executive, in a conference call Thursday.
