Ford Motor Company will today announce plans to cut world-wide capacity by one million vehicles, The New York Times said today, citing a source “close to the deliberations” of the giant car maker’s board of directors.

The NYT said Ford’s share price fell by 6.3 percent to $US15.29 yesterday as analysts worried that the company’s restructuring plan, to be announced at 2.15pm GMT today, would fall short of expectations.

Ford, which needs to find billions of dollars in savings as part of a restructuring plan, is also expected to re-focus on car and truck production by selling some non-core operations including the UK’s Kwik-Fit chain of car repair centres, the NYT said.

But, the newspaper added, analysts and investors believe the cuts will not go far enough to return the company to profit anytime soon.

The NYT said that some analysts, like UBS Warburg’s Saul Rubin, think that cuts of at least 25,000 are needed to reduce the work force in line with the size of Ford’s declining level of business. Ford’s North American market share fell to 21.9 percent last year from 23 percent in 2000 and is expected to fall further this year.

But the newspaper noted that William Clay Ford Jr., Ford’s chairman who recently became chief executive, has said reviving the morale of Ford employees, at both blue- white-collar levels, is a top priority. The company announced in August that it would cut 5,000 salaried workers but has not yet reached that target and will reinforce it today, the NYT added. Ford has about 100,000 staff in the United States.