Ford on target for profitability in 2009

DETROIT, Jan. 24 (UPI) -- Ford Motor Co., which halved its fourth-quarter loss to $2.8 billion, said it is on target to return to profitability in 2009 but more job cuts are needed.

The Michigan automaker says the job cuts are required because of slowing U.S. vehicle sales.

Ford expects to initiate two buyout programs aimed at North American workers in mid-February. Most of those who accept the incentive packages will leave the company in the second quarter. Ford has 12,000 retirement-eligible workers in North America.

The cost-cutting actions at Ford, which trimmed 32,800 North American jobs last year, highlight the heavy restructuring by U.S.-based auto companies. All have tried to resize their businesses but a slowing economy has hampered efforts.

Chrysler is cutting as many as 10,000 hourly workers this quarter and General Motors Corp. announced it will offer more buyouts to its workers, 46,000 of whom are eligible to retire.