Ford to shrink further

Ford Motor Co. might not be done shrinking. A weakening U.S. economy, aggravated by aggressive expansion and price discounting by foreign-owned rivals, could mean further declines before Ford is able to stabilize sales and production levels and begin growing again, Ford President and Chief Executive Officer Alan Mulally said Tuesday evening. At a roundtable dinner in Dearborn with reporters, I asked Mulally if he was willing to draw a line in the sand at a minimum retail share of 13% for the U.S. market — Ford's stated sales goal last year.

"Absolutely not," he replied, saying that he's determined to keep adjusting Ford's output to match retail demand for its cars and trucks, and to keep a lid on incentive spending so that the company can be profitable at whatever level sales stabilize.