Mulally will submit a revised plan to Congress to secure vital funding
2 December 2008

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.

Will Powell

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Comments
5

2 December 2008

About time to and so very long overdue !

Now the next thing will be for Ford, GM & Chrysler to persuade the US government to adopt a policy of enforced dieting on the American public so that the average yanks bum will fit in a smaller car !!!!!!!!!!!!!!

Loving life in France with my Springers

2 December 2008

This is gonna end in tears.

Ford's US sales in November down 31%. Amongst that, Focus down 38%, Edge down 60%, F-series truck only 19%.

It's not fuel cost that's killing American auto sales and hence the Big Three. Gas there is now under $2/gal or about one third UK cost. What's taking the US auto market down from the 1999-2006 16m+ annual level to the 10m for 2008/9 level is the withdrawal of credit and the general bankruptedness of the American consumer. This is reflected in the fact that sales of the F-series are again doing comparatively well - with $2 gas - whilst the econoboxes like the Focus are tanking. Those who can still buy a car want bang for buck and something that suits America's wide spaces and fuel cost is no longer a disincentive. So cue massive green plan by Ford and no doubt GM to win govt funds. Making green/electric cars will not autonatically revive the US auto market and Ford/GM. The US, just like the UK, is fundamentally hamstrung by the bust in housing. Until that bottoms out it matters not what is being offered to US buyers.

2 December 2008

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!

4 December 2008

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.

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