A mix of spiralling fuel prices and a model range heavily dependent on thirsty pick-ups and SUVs are being seen as drivers behind the latest financial bad news.

It is now likely to cut light truck production and convert factories to making smaller cars.

Ford also plans to sell the latest Fiesta and forthcoming Ka replacement –based on the Fiat 500- in America.

Like its rival GM, Ford has been hit by an ill-judged model mix, falling sales and massive overheads caused by generous staff welfare payments.

Its latest woes come as the company celebrated the Model T’s hundredth birthday.