Plunging Truck Sales Drive Ford Deeper Into the Red

Ford's recovery plans have been sent careening off the road by the continuing drop in truck and SUV sales, the Wall Street Journal reports. The company, which now expects this year's losses to top 2007's $2.7 billion, has given up hope of being back in the black by 2009. The ailing Detroit giant has cut production again and delayed the launch of its new F-150 pickup.

Ford's woes are shared by General Motors and Chrysler. The automakers are racing to switch production to smaller vehicles to meet shifting customer demand caused by record-breaking gas prices. With revenue shrinking and operating costs burning cash faster than a Hummer guzzles fuel, the firms are expected to have serious liquidity problems for a long time to come. (More Ford stories.)