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Ford will reduce shifts from two to one in July at the AutoAlliance International plant in Flat Rock, Michigan. The plant, which is jointly owned with Mazda Motor Corp., also makes the Mazda6 midsize sedan.

The plant employs nearly 2,300 people. Most of the layoffs will be hourly manufacturing workers, but some salaried staff also will be cut, Ford spokeswoman Marcey Evans said.

Evans said there was significant down time at the plant last year and Ford can get the volume it needs from one shift. Mustang sales fell 27 percent last year, in part because of competition from the Camaro, which went on sale in the spring and came within 5,000 cars of outselling the Mustang. The Camaro hasn't outsold the Mustang since 1985. Mazda6 sales were down 34 percent.

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