Ford has announced it will make significant reductions in its administration and marketing budget of 20 per cent in a bid to counteract poor car sales.

In a move that follows yesterday's announcement (April 7th) by General Motors that it would be cutting its budget by ten per cent, Ford said it was attempting to continue the company's cost-reduction aim.

Analysts believe the industry is bracing itself for a difficult period, a point acknowledged by Ford spokesman Jim Bright.

'This is probably the most ambitious cost-cutting initiative ever in our 100 years,' he declared.