Ford has announced fourth quarter net losses because of the downturn in economy.

Car manufacturer Ford has announced fourth quarter net losses of $5.9 billion (£4.1bn), although it has stated it does not need “a bridge loan from the US Government”.

It has attributed the losses to its lower volumes and the sale of Jaguar Land Rover, which was completed in June 2008.

Alan Mulally, Ford’s President and CEO, said: “Ford and the entire auto industry faced an extraordinary slowdown in all major global markets in the fourth quarter that clearly had an impact on our results.

“We continued to take the decisive actions necessary to lower production to match the lower worldwide demand and reduce costs, which we expect will allow us to significantly reduce negative operating cash flow in 2009 and position Ford for growth when the economy rebounds.”

On a positive note, the company has gained market share in both Europe and America – Ford became the No.2 selling brand in Europe – and has predicted that its pre-tax results will be breakable or profitable in 2011.

“Despite the tough fourth quarter, we saw many positive developments that make us more confident than ever that we have the right plan and are taking the right actions to survive this downturn and emerge as a lean, globally integrated company poised for long-term profitable growth,” Mulally concluded.