Ford Cuts Dividends

Ford Motor Co. cuts dividends by half in an effort to conserve cash as losses in North America continue to plague the auto maker.

The dividend, which is payable Sept. 1 to shareholders, is reduced 5 cents a share compared with the dividend paid in the second quarter.

Ford also announces members of its board of directors will see their compensation halved from $200,000 a year to $100,000.

In a statement, Ford Chairman and CEO Bill Ford says the auto maker realizes sacrifices need to be made in order to turn around the struggling auto maker.

“The directors also agreed that a reduction in the dividend is consistent with a broad range of actions we are taking across the company to support and improve the performance of our automotive operations,” Bill Ford says. “Strong liquidity is an important enabler of our ongoing turnaround efforts and this action will make an important contribution.”