DEARBORN, Mich. - Ford Motor Co. said Thursday its loss narrowed to $2.8 billion in the fourth quarter and $2.7 billion for the year amid continued weakness in North America.

Ford President and Chief Executive Alan Mulally said the company’s operations are improving but the outlook for U.S. sales in 2008 is grim.

Mulally said the company will be adjusting production and making further cost reductions in North America, including a new round of buyouts for its 54,000 U.S. hourly workers.