Ford has warned that its fourth quarter losses will be much wider than expected. The company says it's been hit by the US economic slowdown and continued high marketing and product costs.
Ford expects a quarterly loss of 50 cents a share before exceptional costs.
Most analysts had predicted a loss per share of 14 cents.
Ford had hoped for a narrower loss than the 28 cents posted in the third quarter.
Yesterday, Ford announced it was laying off 630 workers and reducing retirement and health benefits for 45,000 others.
It hopes the costcutting measures in the US will save it $300 million (€338 million).
In August, Ford said it would cut between 4,000 and 5,000 salaried positions by the end of 2001.
The latest round of job cuts will affect 600 hourly workers and 30 salaried employees at its Edison Assembly plant in New Jersey.
The carmaker will also stop contributions to employee savings and investment plans from January 1st.
PA