Ford sales drop 31 percent

DETROIT (Reuters) - Ford Motor Co (F.N) on Tuesday reported a nearly 31 percent drop in overall sales for November, saying that the economy was continuing to weaken.

Also on Tuesday the No. 2 U.S. automaker, considered to be in the strongest financial position of the Detroit automakers, submitted a restructuring plan to Congress in support of its application for a government credit line of up to $9 billion.

Ford said it would cut first-quarter 2009 production in North America by almost 38 percent from a year-earlier, based on a plan to build 430,000 cars and trucks in the period.

"The economy continues to weaken and auto sales reflect this reality," Ford sales and marketing chief Jim Farley said in a statement.

Sales at Ford's main brands -- Ford, Lincoln and Mercury -- were down about 30 percent in November.

U.S. sales for the Swedish luxury brand Volvo, which Ford said this week it was looking to sell, dropped 47 percent in November, Ford said.

Ford said it expected that industry-wide U.S. vehicle sales had dropped about 35 percent during November, which would mark a continuation of the accelerated downturn that began in October as credit tightened.

Ford's rivals General Motors Corp (GM.N) and Chrysler LLC will submit their own restructuring plans to Congress on Tuesday as the industry prepares to make its case for a bailout at hearings set for Thursday and Friday.

Both companies, as well as other major automakers, were scheduled to report November sales results on Tuesday.

(Reporting by Kevin Krolicki; editing by Gunna Dickson )