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DETROIT -- Ford Motor Co. lost $8.7 billion in the second quarter as high gasoline prices drove consumers away from its big trucks. The company earned $750 million during the same quarter of 2007.

In response to the downturn, Ford announced it will add six small European vehicles to the North American lineup and convert three large truck and SUV plans to small cars beginning this December.

Ford also said it will revitalize the Mercury product lineup by the end of 2010. With no new products on the long-term horizon, the survival of the Mercury brand had been in doubt.

Ford also confirmed it would continue production of the Ranger small pickup truck at the Twin Cities assembly plant in Minnesota through 2011.

The company's revised turnaround plan also calls for doubling its capacity to produce four-cylinder engines in North America by 2011. The company said its hybrid vehicle lineup, and production, will double in 2009.

In the financial report, Ford said that it took $8.0 billion in special charges to write off the value of troubled assets -- including a $5.30 billion charge for Ford North America.

The North American unit posted a $1.3 billion pre-tax loss in the quarter compared with a $270 million loss during the same period a year ago.

Ford said it posted a pre-tax profit of $582 million in Europe during the quarter, up from $262 million. It also turned profits in Asia and South America. The Volvo unit lost $120 million compared with a loss of $91 million a year ago.

Transit Connect coming to North America

"We continue to take fast and decisive action implementing our plan and responding to the rapidly changing business environment," Ford CEO Alan Mulally said in a prepared statement.

"Ford is moving aggressively using our global product strengths to introduce additional smaller vehicles in North America and to provide outstanding fuel economy with every new product."

Ford announced that Mercury will get a new small car in 2010 and that a new European small vehicle will be a "whitespace" entry in North America in 2010.

The company also reconfirmed that it will:

• Add the European Transit Connect small van to the North American lineup in mid-2009.

• Add a new Lincoln seven-passenger crossover. It will arrive in 2009, Ford said today.

• Add the European Ford Fiesta in sedan and five-door hatchback versions in early 2010.

• Switch over to a new European Ford Focus in sedan and five-door hatchback versions in 2010.

• Build a unibody version of the next-generation Ford Explorer. It will arrive in 2010 and improve fuel economy by up to 25 percent.

Plant conversions

Ford said it will convert its Michigan Truck Plant in Wayne, Mich., over to small-car production in 2010. Ford didn't identify the vehicles, but said they would be derived from its global C-car or Focus-sized platform. Ford already assembles the Focus at a neighboring factory in Wayne.

Production of the Ford Expedition and Lincoln Navigator large SUVs currently built at the Wayne truck plant will move to the Kentucky Truck Plant in Louisville, Ky., early next year.

Ford announced that another assembly plant in Louisville, Ky., will switch over from building the Explorer SUV to producing more C-sized small cars beginning in 2011.

The third truck plant to be converted to small cars is in Cuautitlan, Mexico. Ford previously announced that move. The plant, which currently makes F-series pickups, will begin building the Fiesta small car in early 2010.

And the Ranger compact pickup will remain in the lineup for at least two more years than previously planned. The Minnesota assembly plant that makes the Ranger will continue production through 2011. It previously had been scheduled to close in 2009.

Along with the realignments, Ford is offering another round of targeted buyouts to hourly workers at its U.S. plants and facilities. Ford said it is on track to reduce salaried personnel costs by 15 percent in North America by Aug. 1.