DETROIT -- Ford Motor Co., after reporting a $1.38 billion second-quarter loss from automotive operations as high gasoline prices drove consumers from its more profitable light trucks, discloses plans on July 24, 2008, to add six small European vehicles and a large Lincoln crossover in North America, while converting three light-truck plants to small cars beginning in December 2008.
While Ford's auto operations lost more than $1 billion in the second quarter, most of the company's record $8.67 billion quarterly loss came from write-downs in the value of its truck factories and leases.
Ford also said at the time it would revitalize Mercury's product lineup by the end of 2010. With no new products on the long-term horizon, Mercury's survival had been in doubt.
Ford also confirmed it would continue output of the Ranger small pickup through 2011.
With U.S. gasoline prices locked at more than $4 a gallon, Ford's revised turnaround plan called for doubling capacity to produce four-cylinder engines in North America by 2011. Ford said its hybrid vehicle lineup, and production, would double by 2009.
Ford announced that Mercury would get a new small car in 2010 and that a new European small vehicle would arrive in North America in 2010.
The automaker also reconfirmed plans to:
• Add the European Transit Connect small van to the North American lineup in mid-2009.
• Add a Lincoln seven-passenger crossover, the MKT, in 2009.
• Add the European Ford Fiesta in sedan and five-door hatchback versions in early 2010.
• Switch to a new European-engineered and designed Ford Focus, in sedan and five-door hatchback versions, in 2010.
• Build a unibody version of the next-generation Ford Explorer. It arrived in 2010 with fuel economy improved by as much as 25 percent.