DETROIT (Reuters) - Ford Motor Co. (NYSE:F - news) on Thursday said it swung to a loss in the third quarter as sales of sport utility vehicles declined, and Chief Executive Bill Ford Jr. warned of "significant plant closings" to help slash costs in North America.
The quarterly loss, the first for Ford since the fourth quarter of 2003, follows a protracted decline in the company's U.S. market share and deepening financial woes. U.S. sales of Ford vehicles are down 1.3 percent so far this year despite a massive discount program that helped clear inventory of unsold vehicles.
Ford and cross-town rival General Motors Corp. (NYSE:GM - news), which reported a $1.6 billion quarterly loss earlier this week, have seen their margins squeezed by intense competition in the U.S. market and by a dramatic slowdown in sales of mid-size and large SUVs, their former cash cows, due to high gasoline prices.
The companies are also struggling with higher costs and a cut in their credit ratings to high-yield, or "junk," status this year.
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