Ford Motor Company today reported a net loss of 15 cents per share, or $284 million, for the third quarter of 2005. This compares with net income of 15 cents per share, or $266 million, in the third quarter of 2004.

Ford's third-quarter loss from continuing operations, excluding special items, was 10 cents per share, or $191 million, compared to a profit of 27 cents per share, or $515 million, in the same period last year.

Ford Chief Financial Officer Don LeClair said the company will reduce its staff by 10,000 people worldwide before the end of the year, including cuts of 2,750 U.S. salaried workers.

Ford is the second U.S. automaker to report a loss this week. On Monday, General Motors Corp. said it lost $1.6 billion in the third quarter, or $2.89 per share, compared to a profit of $315 million, or 56 cents a share, a year ago.

Ford and General Motors Corp. have been hurt by competition from Asia as well as high health care and materials costs.

"Our most significant challenge going forward is our cost structure, which clearly isn't where it needs to be. And that's why one of Mark Fields’ principle charges in leading our North American operations back to a sustained level of profitability, is to align our plants and our people to the market. Today I am not going to foreclose options for Mark, Anne Stevens, and their newly positioned team by making announcements. Rather, I’ve asked them to make recommendations for my review by December and we'll deliver a complete plan for North America’s turnaround in January, which will then be discussed with you.

That plan will include significant plant closings where facilities don't fit our strategy moving forward. We are also in the process of reducing our payroll in North America, especially in areas that do not contribute to the bottom line. This is not a sacrifice that we will ask only the UAW and its membership to bear. There will be sacrifices asked of people throughout our company from top to bottom in these very difficult circumstances, and we will reduce structure as well as jobs. "

"As our results indicate, we face many challenges in this competitive and difficult environment," said Chairman and Chief Executive Officer Bill Ford. "We have demonstrated throughout the year that we will continue to take the actions necessary to return our core business to sustainable profitability. We understand the issues, our priorities, and have the right team in place to get the job done."

"Jim Padilla is heading for China tomorrow, where he will report on our progress in expanding our manufacturing base and growing sales and dealer bodies. Next week, I’m going to India, where we are introducing an important new vehicle to the market, and to Thailand, where we are expanding our capacity in ethanol vehicles, which are particularly important in that market. These visits reflect our resolve to change not only our company’s size, but its shape, and position ourselves appropriately in this global marketplace."