Ford of Europe is cutting production at its plants by 3 percent for the rest of this year in response to the economic crisis.
The automaker is reducing line rates and laying off temporary workers at its factories across Europe.
Adrian Schmitz, spokesman for Ford of Europe, said the company was responding to the market conditions which are affecting the whole industry.
In the first nine months of 2008, total cars sales in Europe are down 4.4 percent to 11.7 million, according to ACEA, the European car manufacturers' association.
Ford sales in the whole of Europe fell 1.3 percent to 1,414,500 cars in the first nine months.
Schmitz said: We are evaluating the market on a constant basis and we are reducing production volumes during the remainder of 2008.
Schmitz said production would be down 3 percent from the projected 2008 volumes, and would affect most of Fords European factories.
He declined to say how many fewer vehicles would be built.
We are doing this by reducing line speeds, cancelling weekend and weekday shifts and having non-production days, Schmitz said.
At Fords factory at Valencia in Spain, there has been a temporary suspension of contracts for 990 staff for the last three months of 2008.
The workers will be rehired when production of the new Fiesta small car starts there in January, Schmitz said.