Ford lost €694 million in the third-quarter as worldwide sales fell by 9 per cent. The company says sales of cars in the US fell by 15 per cent.
Ford lost €24 million in Europe, compared with a €222 million loss last year.
It says this improvement was largely due to the introduction of new models.
Excluding €190 million for one-time items, including costs related to the restructuring of Mazda and accounting charges, Ford lost €502 million - equivalent to 28 cents per share.
That matched Wall Street expectations. In the third quarter last year, Ford earned €889 million, or 53 US cents a share.
Total revenue was €36.5 billion, down 9 per cent from 40.5 billion a year ago.
Ford president Mr Jacques Nasser says: "This was a difficult quarter, as our results were affected by an uncertain and slowing US economy, compounded by the tragic events of September 11."
PA