In spite of a $980m (�609m) net loss in 2002, car giant Ford has said it will increase car production in the first quarter.

We are looking for 2003 to be another good year for car and truck sales Allan Gilmour, Ford

The net loss was a strong improvement from the $5.1bn net loss the world's second-largest automaker reported in 2001.

Ford shares edged up after it reported a modest net loss of $130m for the fourth quarter, but the shares ended the day 2 cents lower at $10.14.

Ford said losses in its automotive business were outweighed by earnings from its credit arm in the fourth quarter.

More production

The car maker surprised the market by giving an earnings guidance for the first quarter that was well above analysts' expectations, saying higher production in North America and Europe along with more cost cuts would provide a profit of about 20 cents a share.

"Although the outlook for the US economy continues to be uncertain, we are looking for 2003 to be another good year for car and truck sales," said Allan Gilmour, Ford vice chairman and chief financial officer.

Ford wants to increase its North American car production by 25,000 vehicles, to a total of 1.035 million.

The car maker had a tough year in 2002, as it started restructuring just as its great rival General Motors launched a price war to regain American market share.

Ford aims at additional cost cuts of $1bn this year because it feels it is not moving fast enough toward its goal of achieving $7bn in pretax profits by the middle of this decade.