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September 7, 2008 6:55:15 PM CDT

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Plunging Truck Sales Drive Ford Deeper Into the Red

Posted Jun 21, 08 9:12 AM CDT in Business 

(Newser) – Ford's recovery plans have been sent careening off the road by the continuing drop in truck and SUV sales, the Wall Street Journal reports. The company, which now expects this year's losses to top 2007's $2.7 billion, has given up hope of being back in the black by 2009. The ailing Detroit giant has cut production again and delayed the launch of its new F-150 pickup.

Ford's woes are shared by General Motors and Chrysler. The automakers are racing to switch production to smaller vehicles to meet shifting customer demand caused by record-breaking gas prices. With revenue shrinking and operating costs burning cash faster than a Hummer guzzles fuel, the firms are expected to have serious liquidity problems for a long time to come.

Source Wall Street Journal

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Production worker Willie Coleman of Redford, Mich. exits Ford's Michigan Truck Plant in Wayne following his shift Friday, May. 23, 2008.   (AP Photo/Gary Malerba)
In this April 13, 2008, file photo, unsold 2008 F150 pickup trucks sit at a Ford dealership in the southeast Denver suburb of Centennial, Colo.   (AP Photo/David Zalubowski, file)
A Ford Explorer is displayed in front of Ford's Michigan Truck Plant in Wayne, Mich. Friday, May. 23, 2008. The plant plans a 5-week shutdown beginning July 23rd due in part to higher gas prices.   (AP Photo/Gary Malerba)
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auto industry  • General Motors  • Ford  • Chrysler  • automaker  • SUV  • trucks  • pickup trucks


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