Ford: Plan to cut capacity ahead of schedule

Ford Motor Co. is ahead of where it expected to be in improving vehicle quality and reducing production overcapacity at this point in its turnaround effort, a senior executive said today.

"Overall, we're ahead of where we expected to be in capacity reduction," Mark Fields, Ford's president for the Americas told reporters in an update on the automaker's restructuring.

Despite the progress, Ford still faces economic "headwinds," including the slump in the U.S. housing market and higher gasoline prices, Fields said.