Earnings Warning Is Issued by Ford

Ford Motor Co. warned that earnings for the third quarter will be weaker than forecast and sharply cut production plans for the period because of parts shortages.

Heightened security at the U.S. borders and the clampdown on air freight service due to Tuesday’s terrorist attacks on the U.S. have wreaked havoc on the automotive industry, which relies on tight schedules for parts deliveries.

Analysts have also speculated that falling consumer confidence will hurt vehicle sales for the remainder of the year, further necessitating production cuts.

Ford said it will stop production at five North American assembly plants next week as part of a plan to chop output by as much as 13%. The company said it will not meet its previous third-quarter earnings forecast of 10 cents a share, but did not give a new estimate.

Other auto makers are expected to scale back production plans for the quarter.

Ford and its rivals idled some plants intermittently during the week because of parts shortages and to let employees pay their respects to victims of the terror attacks.