Ford Motor Co Chairman Donald Petersenstill expects slightly more than 15 mln U.S.-made cars and
trucks will be sold domestically in 1987, he told reporters.
    This is down from the 16.1 mln U.S. built vehicles sold
domestically last year, he added.
    Despite the sell-off in world stock markets, Petersen said,
the underlying fundamentals in the private sector of the U.S.
economy remain strong so calendar 1988 vehicle sales should
equal the 1987 total.
   
    Petersen said he could not explain nor predict stock market
activity.
    But he called for government officials to seriously address
long-term problems such as the trade and budget deficits,
stating the dollar is still too strong relative to other major
currencies.
    For example, he said, the dollar should be about 120 yen
currently instead of its present level just below 144 yen.
   
    Petersen said Ford plans to spend substantially more in the
next five years than the 15.9 billion dlrs spent in the last
five on new products and upgrading of its manufacturing
operations.
    In 1986, Ford spent 3.4 billion dlrs to upgrade vehicle
manufacturing plants, he noted.
    He also said growth in free world car and truck sales will
be 1.8 pct per year over the next 10 years.
    Worldwide over-capacity, which was about 2.7 mln units in
1985, could expand to nine mln units by 1990, with more than
five mln of those units in North America, Petersen said.
       
 Reuter
