Ford will cut production at its North American plants by 21%, or 168,000 units, in the fourth quarter of this year.

Third-quarter production will be 20,000 units below what was previously announced.

"We know this decision will have a dramatic impact on our employees, as well as our suppliers," chairman and CEO Bill Ford said in a note to employees.

"This is, however, the right call for our customers, our dealers and our long-term future."