Ford Motor Co

At Ford Motor Co., it might be time to dust off those old Quality is Job 1 commercials. Ford brands racked up four "best in show" awards in an influential vehicle quality survey released Wednesday. The Ford Mustang took top honors in the mid-size sports car category of J.D. Power & Associates' annual survey of new-vehicle quality. Ford's Lincoln MKZ was tops among entry-level premium cars and the Lincoln Mark LT finished first among large luxury SUVs.

Ford Motor Co. is studying the role a plug-in hybrid might have in its future, Chief Executive Bill Ford Jr. said. The idea of a plug-in hybrid, which would add rechargeable batteries to a gasoline-electric hybrid system and enable the vehicle to run solely on electric power for extended periods, is promoted by environmentalists but has not been embraced by automakers. Previously, only Toyota Motor Corp.

Ford Motor Co. said it had recalled 170,500 vehicles in North America over a variety of defects that could lead to rattling seats, squeaky wheels and trouble starting engines. The recall affects 145,500 F-Series Super Duty pickup trucks, Excursion sport utility vehicles, Crown Victoria police vehicles and Lincoln Town Cars. The 2003 model-year pickup trucks and Excursion SUVs equipped with diesel engines have problems with battery connectors.

Ford Motor Co. said Wednesday that profit in the second quarter fell 27% as North American sales of models including the Explorer sport utility vehicle and F-150 pickup declined. The world's No. 2 automaker said net income dropped to $417 million, or 22 cents a share, from $570 million, or 29 cents, in the 2002 period. Chief Executive William Clay Ford Jr. cut costs to post a second straight quarterly profit for the first time since he took over in late 2001. Revenue fell 3.6% to $40.7 billion.

Ford Motor Co. may cut as many as 2,000 white-collar jobs worldwide, a source familiar with the plan said, as part of the company's plan to cut salaried employee costs by 10%. A Ford spokesman declined to specify how many jobs might be affected by the cost-cutting plan, which was outlined as the company began negotiations with the United Auto Workers for a new contract and permission to close two U.S. assembly plants and cut thousands of union jobs. Ford shares rose 16 cents to $10.

Ford Motor Co., the world's No. 2 auto maker, submitted a letter of intent to participate in an auction of South Korea's Kia Motors Corp. and Asia Motors Co., Kia said. The decision to sell the insolvent Kia rather than shut it down has drawn criticism from investors for failing to address the problem of excess capacity in the world's fifth-largest auto industry. Hyundai Motor Co., Korea's largest auto maker, is operating at a record low 40% capacity amid a deepening recession.

Ford Motor Co. jumped back into the bidding for South Korea's debt-laden Kia Motors Corp. and sister firm Asia Motors Inc. South Korea's Big Three auto makers--Hyundai Motor, Daewoo Motor and Samsung Motors--also submitted bids in the third international auction for the two auto firms. Analysts said Ford is best positioned to win the bidding this time because of South Korea's need for foreign capital and the U.S. car maker's longtime business ties to Kia.

Declaring himself a car guy and environmentalist, William Clay Ford Jr. said Wednesday that one of his chief goals as chairman of Ford Motor Co. will be to make it the world's most environmentally friendly auto maker. In his first major speech since being tapped Sept. 11 as chairman of the company his great-grandfather founded, Ford vowed to instill a "new environmental ethic" at the company.