Ford cutting North American production
Automaker also scaling back goal of returning to profitability

DETROIT - Ford Motor Co. says it is cutting North American production for the rest of the year as high gas prices and the weak economy depress its sales.

The Dearborn-based company said Thursday it also expects to break even in 2009, scaling back its goal of returning to profitability by that time.

Ford says it will cut production by 15 percent in the second quarter, 15 to 20 percent in the third quarter and 2 to 8 percent in the fourth quarter

The cuts primarily will affect pickups and sport utility vehicles, which have seen sales plummet in recent months. Ford plans to increase its production of cars and crossovers.

Honda hybrids may be nightmare for Detroit
New entries into market coming at a time when U.S. favoring smaller cars

GM and Ford, Robinet said, can rely on their European and Asian operations for small car expertise to quickly catch up. Chrysler has few small vehicles of its own but has signed a deal for Nissan Motor Co. to make small Chrysler cars in 2010.

Ford is banking on its Ecoboost direct-injection turbocharged engines and has midsize hybrids due out next year, while Chrysler is developing efficient smaller diesels and has hybrids in some large SUVs.