Citing a deteriorating U.S. business environment and people looking to get away from large trucks and SUVs, Ford announced Friday that it is cutting back on truck production while adding more small cars, crossovers and fuel-efficient powertrains.

"As gasoline prices average more than $4 a gallon and consumers worry about the weak U.S. economy, we see June industry-wide auto sales slowing further and demand for large trucks and SUVs at one of the lowest levels in decades," said Ford President and CEO Alan Mulally. "Ford has taken decisive action to respond to this accelerating shift in customer demand away from large trucks and SUVs to smaller cars and crossovers, and we will continue to act swiftly moving forward."

Ford is planning to produce 25 percent fewer vehicles in the third quarter of 2008 than in the 2007 third quarter. The production cuts are on top of other reductions the company announced last month.

In addition to the production cuts, Ford is delaying the release of the new 2009 Ford F-150 pickup truck by approximately two months due to the industry-wide slowdown in the U.S. truck market. The new F-150 is now scheduled to go on sale in late fall.

"The new 2009 F-150 raises the bar yet again on capability, quality and durability, and we know core truck customers are eagerly awaiting its arrival," said Mark Fields, Ford's President of The Americas. "Our plan all along has been to introduce the new F-150 after our dealers had a chance to sell down inventory of the existing model, and -- with the current slowdown in the marketplace -- we decided it was prudent to adjust the start of public sale for the new truck by about two months."

Production of the 2009 F-150 now will begin in August at Kansas City Assembly Plant and in September at Dearborn Truck in Michigan.

Production will wind down at Cuautitlan Assembly Plant in Mexico by the end of 2008. The plant, which now produces large pickups, will be retooled for production of the new Fiesta small car for North America beginning in early 2010. Ford also is taking the following actions to increase capacity in the third quarter:

Oakville Assembly will add a third shift for production of the Ford Edge, Lincoln MKX and all-new 2009 Ford Flex crossovers.

Kansas City Assembly Plant's line that produces the Ford Escape, Escape Hybrid and Mercury Mariner and Mariner Hybrid small utility vehicles will add a third shift.

Wayne Assembly Plant's body and paint shops will add a third shift, and the line-speed will be increased for final assembly production of the popular Ford Focus small car.

"We view the move to smaller, more fuel-efficient vehicles as permanent, and we are responding to customer demand," Mulally said. "In the near term, we are adjusting production to the actual demand -- increasing small cars and crossovers and reducing large trucks and SUVs. For the long term, we are moving fast to introduce more small cars, crossovers and fuel-efficient powertrains -- including more hybrids -- and we will adjust our manufacturing facilities to match our updated product lineup."