FORD USA $9Billion Loss

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FORD has announced plans to accelerate its vast restructuring plan after the auto giant posted its worst quarterly loss in history.

The carmaker has now lost nearly $US24 billion ($25bn) since 2006 and recently backed off plans to return to profitability by 2009 as high fuel prices and a weak US economy have substantially cut demand in its home market.

This latest revision to Ford's restructuring plan includes a small-car and fuel-efficiency offensive in reaction to what the carmaker considers a permanent shift away from petrol-guzzling pick-up trucks and large sport utility vehicles (SUVs).

Ford would also accelerate plans to streamline its global operations and will reduce the number of vehicle platforms it offered to nine from 25, Ford president and chief executive Alan Mulally said.

"We continue to take fast and decisive action implementing our plan and responding to the rapidly changing business environment,'' he said.

"Our European and South American operations are robust and profitable. We have momentum in Asia. And we are uniquely positioned to leverage our global assets and the global strength of the Ford brand to quickly bring more small, fuel-efficient vehicles to North America.''

Ford said it was speeding up its reorganisation in North America "because of deteriorating economic conditions'' that have hurt demand for cars and due to "a significant shift'' away from large pickup trucks and traditional SUVs.

In addition to bringing six small vehicles to North America from its European line-up, Ford is speeding up plans for its EcoBoost turbocharged engine and new four-cylinder engines that deliver better fuel economy.

It is also boosting hybrid production and converting three truck and SUV plants to small-car production, beginning in December.

Ford's US sales fell 28 per cent in the first six months of the year while overall sales were down 16 per cent.

The $US8.7 billion loss in the second quarter was largely due to hefty charges as Ford wrote down the value of its assets and recognised losses from auto-leasing.

Excluding special charges, the operating loss was $US1.0bn for the second-largest US automaker, or US64 cents per share, far steeper than Wall Street estimates of a loss of US27 cents a share.

Investors punished Ford, pushing shares down 15.5 per cent to $US5.11.

"The last quarter has certainly been a challenging one for the entire automobile industry,'' Mr Mulally said.

"We also believe we're uniquely positioned to respond to the new environment in which we expect to operate in the years ahead.''