AP reported that with the US auto market worsening for Ford Motor Co almost daily the company will have to further reduce its factory work force in the coming months.

United Auto Workers union officials were told in a meeting that Ford needs to make additional cost cuts. Ms Anne Marie Gattari a spokeswoman of Ford said that “So that we can make the vehicles in an efficient way that customers are buying.”

At the meeting, attended by about 300 executives, plant managers and union officials from across the US Ford reiterated previous statements that it would make buyout and early retirement offers at targeted factories as it tries to further pare its payroll. Union members declined to comment as they were leaving the meeting.

Ms Gattari said that Ford is still trying to determine which factories would get the offers, but prefers to use them over more dramatic steps such as closing factories. She said that "We have a lot of cost-cutting elements that we can work on together. We are looking at doing those kinds of things before we do anything more drastic that no one wants to do."

Ford announced in May that it would cut production of trucks and SUVs, but increase factory output of cars and crossovers through additional shifts and overtime and the realignment of some of its manufacturing capacity. The company also said it plans to accelerate the North American introduction of some of its small cars from Europe and South America, although it didn't reveal which vehicles.

The slumping US economy has cut US auto sales by 8% during the first five months of the year, but it's been a double hit on Ford, General Motors Corp and Chrysler LLC as consumers shun their high profit pickup trucks and sport utility vehicles for more fuel efficient models as they cope with USD 4 per gallon gasoline.