Ford sounds the alarm again

FORD Motor Company has issued its fourth profits warning in as many months, saying it expects to incur losses of about $900m (£634m) in the fourth quarter. The world's second-biggest carmaker, which lost $1.56bn in the first nine months of the year, has been hit by Americans defaulting on its interest-free loans.

Ford said the fourth-quarter loss would total 50 cents a share - about $900m - before one-off items. It had previously been confident it would be able to narrow its 28-cents third-quarter loss. The company is now on course for its first full-year loss since 1992.

Ford said: 'The primary reason for the lower forecast is increased credit loss reserves reflecting weakened US economic conditions. In addition, marketing and product costs remain at high levels.'

The company is finalising a sweeping overhaul of its American operations, likely to involve the closure or mothballing of plants and several thousand job losses.