Ford Motor Co

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., 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.

A 30-year employee of Ford Motor Co. killed a plant security supervisor and then turned his gun on himself, police said. It was the second killing in two years at the Ford Motor Climate Control Plant near Detroit. Authorities were still trying to learn what led to the shooting, said Police Chief Carl Berry. Stephen Cox of Ypsilanti, Mich., employed as a cleaner by Ford, entered the security office carrying a semiautomatic handgun and opened fire on unarmed guard Donald Jagod, Berry said.

Ford Motor Co. said it agreed to sell its Kwik-Fit vehicle-repair chain to a private equity group for less than a third of what the world's No. 2 auto maker paid for the business three years ago. The private equity group, London-based CVC Capital Partners, will purchase Kwik-Fit for $500 million in cash and a note to be paid as CVC obtains outside financing, Ford said. Regulatory approval for the deal also is needed.

Ford Motor Co., the world's second-largest auto maker, will be the sole negotiator to acquire Daewoo Motor Co., beating out four rivals who also placed bids for South Korea's No. 2 auto maker, the restructuring committee said. Ford and Daewoo Motor's restructuring committee plan to sign a final agreement after negotiating terms over the next six weeks, the committee said. No financial details were disclosed, although Korean news reports said Ford's bid was about $6 billion.

Ford Motor Co. said earnings rose a more-than-forecast 15% in its first quarter on U.S. sales of its most-profitable sport-utility vehicles and luxury cars. The world's second-largest auto maker posted net income of $2.08 billion, or $1.70 a share, up from $1.81 billion, or $1.46, a year earlier. Revenue rose 14% to $42.9 billion. Ford was forecast to earn $1.58 a share, the average estimate of analysts surveyed by First Call/Thomson Financial. Most of Ford's profit came from the U.S.

Ford Motor Co. (F) may cut its dividend next week for the first time since 1991 as the second-largest auto maker reduces costs in response to declining car and truck sales, analysts said. The company's board is scheduled to meet Thursday. Ford's quarterly payout now is 30 cents a share, costing the company about $2.17 billion a year. "I wouldn't be surprised to see a 50% cut," said Rod Lache, a Deutsche Banc Alex. Brown auto analyst. He called reducing the dividend "an important thing to do."

Hoping to sidestep online brokers who try to undercut traditional dealers, Ford Motor Co. has begun operating its fledgling online sales operation in nine states, including California, the auto maker said Monday. Ford is selling cars through a joint venture with its dealers called FordDirect.com. It's the auto manufacturer's latest attempt to embrace the Internet and dodge brokers who try to offer cheaper prices than bricks-and-mortar dealerships. Through FordDirect.

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.