Ford cuts sales view, delays new pickup 2 months

0 Comments | Deseret News (Salt Lake City), Jun 23, 2008 | by Tom Krisher Associated Press

Ford, which has mortgaged its factories and blue oval logo to stay in operation, should have enough cash to stay afloat into 2010 when the economy is expected to recover and the Detroit Three begin to see savings from shifting hourly retiree health care costs to the United Auto Workers, Levy said.

"I think they had some cushion for the cash needs when they mortgaged the Ford brand, but the environment that's appeared since then has changed," Levy said. "It's going to make it ever more difficult for them to make the turnaround. That's not saying they can't."

Earlier this month, GM announced it would close four truck and SUV factories. On Thursday the company said it would delay work on the next-generation of full-size pickups and SUVs to focus resources on more fuel-efficient vehicles.

Chrysler made cuts earlier in the year and has confirmed the idling of its Warren, Mich., truck plant for five weeks this summer before it begins production of the redesigned Dodge Ram.

Spokesman Ed Saenz said the company has no immediate plans for further cuts in its truck production and the Ram would be launched on schedule this summer.