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Problems in the motor industry
Ford to cut production

Ford Motor Co. on Friday said it would cut fourth-quarter production by 21 percent and also reduce third-quarter production to accelerate its turnaround plan.

The automaker said it would cut North American production in the fourth quarter by 168,000 units and reduce third-quarter production by 20,000 vehicles.

"We know this decision will have a dramatic impact on our employees, as well as our suppliers," Chief Executive Bill Ford told employees, but he said it was the "right call."

He said full details of the accelerated plan would be announced in September.

Ford, which is battling shrinking U.S. market share and rising costs, had said it would accelerate its turnaround plan to respond to the weakening demand for fuel-hungry trucks and sport utility vehicles in the U.S. market as gasoline prices have remained high.

For the full year, Ford now plans to make 3.048 million vehicles in North America, down 9 percent from a year earlier.

"We are determined to match production and inventories with consumer demand," said Ford's president of the Americas, Mark Fields.

"We'll reduce incentive spending and inventory carrying costs for our dealers -- with the intent to improve residual values for our customers."

Ford, which posted a second-quarter loss of $254 million and has hired an outside financial adviser, has said it will close 14 plants and cut up to 30,000 factory jobs to return its North American unit to profitability by 2008.

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John Mark Karr
JonBenet suspect seen deported soon

Thai authorities hope to deport the American accused of the 1996 murder of child beauty queen JonBenet Ramsey to the United States this weekend, officials said on Friday as questions surfaced over the schoolteacher's story.

John Mark Karr, 41, arrested in Bangkok this week, told reporters he was with six-year-old JonBenet when she died but her death at Christmas a decade ago was an accident.

Casting doubt on his story, his ex-wife Lara told KGO-TV in San Francisco he was with her in Alabama the entire Christmas season that year and did not believe he could have been involved in JonBenet's murder.

But Thai police denied U.S. media reports that Karr had said he had drugged JonBenet, despite no evidence of drugs being found in her body. They also denied he said he had picked her up from school, which was closed for the Christmas holiday.

" Karr did not tell interrogators he drugged the girl," Thai Immigration Police chief Lieutenant-General Suwat Tumroungsiskul told Reuters. "He said he had sex with her and her death was accidental."

Watching cable television reports from his Bangkok cell, Karr expressed displeasure at the media coverage of the case.

" He said he did not drug her. He said he wants the world to know the truth. He asked for another press conference," said a police interrogator who had been with Karr in his cell.

It was not clear whether his request would be granted. Thai officials said they were more interested in getting Karr out of the country.

" We want him to be out as soon as possible," the interrogator told Reuters. "We are aiming for this weekend.

But it is up to the Americans to find an available seat on a commercial flight for him."

PALE AND DAZED
Karr, whose arrest was the latest twist in the sensational December 26, 1996 murder, was paraded before reporters on Thursday, looking pale and dazed and surrounded by police. Asked if he was innocent, Karr shook his head and said, "No".

" I was with JonBenet when she died," Karr said. "The death was an accident."

JonBenet was found in the basement of her Boulder, Colorado, home, strangled with a complicated garrote made from a stick and cord, her skull fractured.

The girl's body was found by her father hours after her mother stumbled on a bizarre, three-page letter claiming she had been kidnapped for $118,000 ransom.

Slender, sandy haired and dressed in a blue polo shirt and beige trousers, Karr spoke to reporters in a quiet voice. "I loved JonBenet," he said.

His father, Wexford Karr, told the Denver Post his son had been so interested in the JonBenet case that he wanted to write a book about it.

SUICIDE WATCH
Karr, to be taken into custody in Boulder to await trial, was under constant watch in his cell at Bangkok's immigration bureau. His request for a shaving razor was turned down, a police officer said.

Boulder County District Attorney Mary Lacy suggested his arrest came sooner than she would have liked. Karr started teaching at a Bangkok school on Tuesday and while investigators would have liked more time to develop evidence safety worries sometimes prompted an arrest in criminal cases, she said.

Karr had been in and out of Thailand five times in the past two years, police said, and in February had been employed for two weeks at St. Joseph's Convent School in Bangkok.

" He worked here on trial for a very short time but he did not meet our standards, so he was fired," said an official at the private Thai school who declined to give her name.

Lacy would not say what evidence her office had against Karr, who came to the attention of authorities by contacting a Colorado journalism professor who has made documentaries about the murder.

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