WASHINGTON — Ford Motor Co.'s sequel to its Way Forward plan isn't forward enough for Wall Street. Investors sent Ford's shares down again yesterday, and analysts doubted whether the plan will cure what ails Ford's business.

Word that Ford and General Motors Corp. had passing talks about new alliances did little for either company. Ford and GM have partnered in the past, most recently on designing new transmissions, but sources told the Detroit Free Press that nothing came of the discussions.

Ford's shares closed down 2.5 percent yesterday at $7.82 per share, shedding 15 percent of their value since their close on Wednesday at $9.19. That figure marked the end of a run-up precipitated by the hiring of Alan Mulally as chief executive and anticipation about the plan.

Despite Ford's decision to shed 44,000 jobs, close 16 plants and speed capacity cuts, many analysts say the plan "does not step out of the box that we see the company in," as Banc of America analyst Ronald Tadross said in a note to clients yesterday.

The dissent stems from the delay in a return to profitability in Ford's North American automotive business — not expected to occur until 2009 now — and a cash burn estimated to hit $7 billion in the second half of the year. There are fewer sales of assets than analysts had hoped to see, like a sale of the Jaguar brand.

The strategy "fell short of our expectations," said analyst Himanshu Patel of J.P. Morgan, "and we believe the stock is modestly overvalued."

The core of the plan unveiled Friday by Mark Fields, president of Ford's North and South American operations, throws out the assumption that Ford could stem its U.S. market share losses, a belief that was an integral part of its previous two revival attempts. Instead, Ford now expects to build about 3.1 million vehicles in North America by the end of the decade, good for about 15 percent of the U.S. market share. That level likely will place it behind Toyota in U.S. sales.

"The plan signifies a cultural change at the company. For the first time in my memory, it's making a very candid and realistic assessment of its market share prospects," said John Casesa, an independent consultant who has followed the industry for more than a decade.

"It's a remarkable statement for Ford to say publicly it's going to lose share, but a very realistic one."

What caught Wall Street off-guard was Ford's admission that even though it will cut its capacity to 3.6 million vehicles by 2008, it will have some excess until 2010. Chief Financial Officer Don Leclair said on Saturday that Ford couldn't close plants faster because the vehicles it makes in the targeted plants are profitable.

While Ford plans to maintain its market share with new models and updates to vehicles such as the F-Series pickups, analysts say Ford might be underestimating its market share decline just as it has in the past. Citigroup analyst Jon Rogers calculated that even after the cuts in 2008, Ford still would have 16 percent more North American capacity than it needed. Tadross said the reliance on the F-Series and the inability to close some plants underscores how narrow Ford's base of profitable vehicles has become.

The capacity cut "seems inadequate," Tadross said. Ford "indicated further capacity cuts beyond 2008, but they might just end up trying to catch a ball rolling downhill."

By its own estimates, Ford's models will face competition from about 300 other vehicles in the U.S. market by the end of the decade. When the Fairlane seven-passenger crossover debuts in 2008, it will face competitors from GM, Toyota, Honda and likely Hyundai, many of which will have been on sale for a few years.

"They have new product, but so does every automaker," said John Novak, an analyst with Morningstar Investment Services. "They're going to be selling into very competitive segments, and they're going to face stiff competition across the board."

Some analysts suggested there could be additions to the turnaround plan once Mulally fully assumes control as CEO.

Fields defended the plan again yesterday. He told The Associated Press, "I can't really predict and understand the responses from Wall Street. The best way for us to spend our time is to focus on executing our results and accelerating this plan ... and let the market decide from there."