Ford has submitted its restructuring scheme to the US Congress. The new plans commit it to launching new hybrid and electric vehicles by 2012 if its gets financial support from the government.
The dossier - released ahead of a critical meeting between the Big Three and the US government later this evening - also states that CEO Alan Mulally will work for just $1 next year.
Ford wants $9 billion of government money to be made available in the form of a bridging loan, but adds that it "hopes to complete its transformation without accessing the loan should Congress agree to make the funds available".
"For Ford, government loans would serve as a critical backstop or safeguard against worsening conditions, as we drive transformational change in our company," said Mulally.
In the plan, Ford commits itself to investing $14bn on green technology and says it will improve fuel efficiency drastically over the next six years.
Compared with 2005 models, Ford says it will cut CO2 emissions by 14 percent for 2009 cars, 26 percent for 2012 cars and 36 percent for its 2015 range.
Ford also confirms that it will reveal its "accelerated vehicle electrification plan" at the Detroit motor show in January. This should showcase a range of hybrids, plug-in hybrids and pure EVs. In a similar move to General Motors, Ford has decided to sell its entire fleet of five corporate jets. It is also cancelling all management bonuses worldwide and all bonuses for employees in North America. There will be no increase in salary for US employees throughout 2009.
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Re: Ford's new restructuring plan
I'd give anything to work in Ford's payroll dept next year, taking AM's salary, dividing it by 12, deducting taxes, pension contributions etc, and transferring the balance to his bank. Wouldn't mind betting he makes a good income through other avenues though, such as in pension and contract termination 'enhancements', expenses, and share options. Glad to see the corporate jets have gone though. Extravagant for a failing business.
Re: Ford's new restructuring plan
check this report out on CNN:
http://money.cnn.com/2008/12/02/news/companies/automakers_plans/index.htm?cnn=yes
Re: Ford's new restructuring plan
Good on Ford.....its exciting times....
You have to remember that the Focus in the US was flying, its sales just a year ago where low and they went up hugely; in fact so much so the factory could not keep up!
The F-series is better, but I am not sure if they have released the new F-series yet i.e. it is still the out going unit; if its the out going unit I am not sure if they have not virutally stopped production; they ramped it up to cover change over for the new F-series which I do not think is now out until 2009 (?); I als think they plan to bring out another lower weight pick up i.e. F-100
I think the market in the US is about as low as it will go (I do not think it will go much lower) and Ford is very well placed to acheive the plan; Ford will be fine and it will be great to see the GM Chevy Volt on the market....it thrashs the Toyota P (about time something really hit that heavy hoax for six) and I think GM have decided to bring it to the EU under the Opel/Vauxhall name (although with Chevy here..who knows); god bless amercia!