Ford officials said the company makes more cars than it can sell, and must take measures such as the reduction of North American plant manufacturing operating capacity by about one million units by mid-decade to realign capacity with market conditions.

The company declared a first-quarter dividend of $0.10 a share on the company's class B and common stock. This represents a 33% decrease from the fourth quarter and a 67% reduction from the third quarter 2001.

Globally, about 35,000 employees have been or will be laid off because of the company's troubles.

Chairman and CEO Bill Ford says new product designs and eliminating plants, personnel and some models should help boost the automaker back into the black.

"What we are outlining today is a comprehensive plan that builds for the future," he says. "It's going to take everyone in the extended Ford family -- employees, suppliers and dealers -- working together, over time, to make it work."

Steps the company had already taken before the announcement include the consolidation of car and truck product development in North America, a 50% dividend reduction, a 7% pay reduction to contract labor firms, a voluntary separation program for North American salaried employees, the elimination of bonuses and raises for senior managers, a sharing of health care costs with US salaried employees and retirees, and the elimination of the company match for US salaried employee 401(k) plans.