Ford slams brakes on profit plan

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US car giant Ford has abandoned its goal of making its loss-making North American business profitable next year.

The company has been hit by the slowdown in the world's biggest economy and soaring oil prices which hit a record high on Thursday.

Ford says it will cut more jobs and production this year as demand for large gas-guzzling cars falls and production costs soar.

The news sent shares at America's second biggest car maker down 8%.

Ford, which has lost more than $15bn over the past two years, sold its luxury brands Aston Martin, Jaguar and Land Rovers to raise cash.

But its finances remain under pressure as consumer spending, the engine of the US economy, stalls and Americans opt for smaller, more fuel-efficient cars.