Ford is to cut thousands of managerial and administrative jobs after clocking up operating losses of $2.98 billion (£1.87 billion) in the third quarter.

The carmaker will cut 10 per cent of its workforce as it attempts to combat the slump in worldwide sales.

However, the US’s second biggest carmaker insisted that it was happy with its cash position, despite burning through $7.7 billion during the quarter. There are continuing fears that the big three American carmakers are fast using up funds.

The company said that its automotive cash stood at $18.9 billion at the end of September and that it had available credit lines of $10.7 billion.

Alan Mulally, chief executive of Ford, said: “We continue to take fast and decisive action implementing our plan and responding to the rapidly changing business environment. We have a strategy that is broad and specific enough to handle the dramatic changes in today’s environment.”

Ford’s losses for the first nine months of the year now stand at $3.8 billion.

Ford, General Motors and Chrysler have pressed the US Government for cash over and above the $25 billion it has set out for car companies to invest in green technology.

In Germany BMW, the world’s largest premium carmaker, and Mercedes-Benz Cars of Daimler, posted substantial sales falls last month. BMW suffered a 8.3 per cent drop to 113,005 vehicles and Mercedes-Benz saw sales fall 18.1 per cent to 82,500 cars.

Times Recommends

• C&G axed - 1,660 jobs to be lost
• UK house prices rise 1.1% as buyers return
• Mixed reaction to US banks repaying bailouts