Ford Cuts Production, Warns on Earnings

Ford Motor Co. said on Friday it would sharply cut production for the rest of the third quarter, and warned that earnings for the period would not meet prior forecasts. 

Ford, the world's second largest automaker, said plans to cut North American vehicle production by 110,000 to 120,000 units to 810,000 to 820,000 units for the third quarter were due to parts shortages resulting from transportation problems following Tuesday's attacks in New York and Washington. 

The Dearborn, Michigan-based automaker said it will not meet its previous third-quarter earnings forecast of 10 cents per share before one-time items. 

Ford said it will suspend production at five North American assembly plants next week. A sixth plant will be idled on Monday, but may resume operations as early as Tuesday, Ford said.