The financial and leadership crisis at Ford deepened yesterday when the world's second-largest car group announced it had lost more than $500m in the last three months alone and warned it might stay in the red for the rest of this year.
Jac Nasser, president and chief executive, pointed to "an uncertain and slowing US economy compounded by the tragic events of September 11" as the source of Ford's woes. The losses contrast with the $1bn (£690m) profits in the same quarter a year ago.
But Mr Nasser's position, believed to be already weakened by ice-cold relations with William Clay Ford, chairman and great-grandson of founder Henry Ford, is under renewed siege. The Ford family, which is said to be baying for his blood, owns 40% of the company.
Company officials refused to comment on mounting rumours that Mr Nasser would be forced out before the year's end.
It is the first time since the 1992 recession that Ford has made losses in two successive quarters - and there could be a third to come.
Wall Street believes the process of replacing Mr Nasser has already begun with the move of Nick Scheele, who had been running the company's European operations and was Jaguar's chairman, to North America.
But Mr Nasser, who has been forced to write off a further $199m for investments in e-commerce and the like, bringing total quarterly losses to $692m, has been under fire for months, notably because of the controversy surrounding the recall of Firestone tyres on its Explorer vehicle.
Last week's move to cut the dividend for the first time in 10 years was also regarded as damaging for Mr Nasser who in August announced up to 5,000 job losses among salaried staff and promised further retrenchment in December.
His finance director, Martin Inglis, admitted that the current quarter would be "volatile and uncertain", and Ford would find it difficult to make a profit. Mr Nasser said the overall economic outlook was uncertain. Ford sales in September alone fell almost 10%.
Ford's chief executive insisted, however, that the North American car market - where the company lost $849m in the third quarter on a 15% fall in sales - would still be in the normal range of 16.5m-17m vehicles sold this year.
He gained some comfort from evidence of a turnaround in Ford's European operations which reduced a loss of $221m a year ago to one of $24m in the last three months. Last year Ford UK alone lost £636m, mainly through Dagenham closure costs.
Mr Nasser's position has also been undermined by rating agency Standard & Poor's decision this week to cut Ford's debt rating - and that of its bigger rival, General Motors - because of their financial position and the increasing competition for car sales.
Car sales are running at their lowest rate for almost two years and manufacturers are extending incentive schemes to encourage purchases. Ford hinted yesterday that it would follow GM's move to extend its 0% financing offer throughout November at the very least.
