Ford Motor Company has posted its fourth consecutive quarterly loss, though the $800m (£553m) deficit for the Jan-March period was better than expected. Turnover fell six per cent to $39.86bn (£27.55bn). The vehicle manufacturer blames a sales slump in the crucial US market for the poor performance.

Its European operations, which broke even last year after restructuring that involved several plant closures, increased turnover from $88m (£60.8m) to $117m (£80.9m). Ford announced a severe turnaround plan for its North American operation in January - including 35,000 jobs loses and five plant closures - as it bids to return to full profitability by mid-decade.

William Clay Ford, company chairman and chief executive, says: “There's still some uncertainty , but the general economic climate is improving and we are on schedule to meet or surpass our 2002 earnings milestone.”