Ford Scales Back 1st-Quarter Production Plans

Ford Motor Co. cut its first-quarter North American production plans 17% from a year earlier because of slower demand and said profit this quarter will be reduced by weather and parts shortages that trimmed output. The second-largest auto maker said it expects to build 1.05 million cars and light trucks in North America in the first quarter, down 220,000 from a year earlier and 107,000, or 9.2%, fewer than previously planned. Profit this quarter will be reduced about 10 cents a share, or 14%, from the 74-cent average analyst estimate, the company said. Ford, which will idle some of its plants in the U.S., Canada and Mexico in January, follows industry leader General Motors Corp. in cutting first-quarter production. GM earlier this month trimmed its North American plans 14% to 1.3 million vehicles. U.S. sales of cars and light trucks fell 3.4% last month, including more than 8% at both Ford and GM. Ford did not say how much production it lost this quarter because of weather delays in North America and parts shortages outside the region. Ford made its announcement after the markets closed. Its shares closed up $2.06 at $24.19 on the New York Stock Exchange.