Ford Motor Co. in a statement have said that its operations lost $1.3 Billion in the second quarter as high gasoline prices have driven the consumers away from big trucks. The company earned $258 million during the same period last year.

The company has also taken an $8 Billion charge primarily for reducing the value of its various troubled assets, bringing the net loss for the quarter to $8.67 Billion. Ford stock prices have fallen 7.63 percent on hearing the news to $5,57 a share.

This is the worst quarter performance ever in the history of Ford Motor company. The company has annouced new strategies and plans in response to the downturn. The company will add six small European vehicles to the North American lineup and convert three large truck and SUV plants to small cars beginning this December. The company will also revitalize the Mercury product line up by the end of 2010.

Source: Automotive News

The production of the small pick up Ranger will continue though at twin cities assembly plant in Minnesota till 2011. The turnaround plans also call for doubling its capacity to produce four-cylinder engines in North American by 2011. Ford said that its hybrid vehicle line up and production will double in 2009.

 The company also confirmed:

• Add the European Transit Connect small van to the North American lineup in mid-2009.

• Add a new Lincoln seven-passenger crossover. It will arrive in 2009.

• Add the European Ford Fiesta in sedan and five-door hatchback versions in early 2010.

• Switch to a new European Ford Focus in sedan and five-door hatchback versions in 2010.

• Build a unibody version of the next-generation Ford Explorer. It will arrive in 2010 and improve fuel economy by as much as 25 percent.

Plant Conversions:

• Ford said it will convert its Michigan Truck plant in Wayne, Mich., to small-car production in 2010. Ford didn’t identify the vehicles but said they would be derived from its global C-car or Focus-sized platform.
• Production of the Ford Expedition and Lincoln Navigator large SUVs now built at the Wayne truck plant will move to the Kentucky Truck plant in Louisville, Ky., early next year.
• Ford announced that another assembly plant in Louisville will switch from building the Explorer SUV to producing more C-sized small cars beginning in 2011.
• The third truck plant to be converted to small cars is in Cuautitlan, Mexico. Ford previously announced that move. The plant, which now makes F-series pickups, will build the Fiesta small car in early 2010.