Ford Sales Drop 26.5% as Slump Continues

DETROIT - Ford Motor Co. says its August sales dropped more than 26 percent as U.S. economic woes and high gas prices continued to batter the auto industry.

The company also doesn't expect a sales rebound in the second half of the year. It said Wednesday that it plans to cut 50,000 more vehicles from its production plan in the second half of the year.

Ford's sales decline was expected by industry analysts who predicted continued bad times for the U.S. auto industry. Other automakers report their sales figures later Wednesday.

Ford said its Ford, Lincoln and Mercury car sales dropped nearly 9 percent, while truck sales were off more than 32 percent.