Ford Motor Company has released details of the plan its CEO, Alan Mulally, is currently presenting to the United States Congress in Washington, D.C. In the plan, Ford asks for up to $9 billion in bridge financing and says that it intends to invest up to $14 billion in the U.S. over the next seven years to develop more fuel efficient cars and that it will work to reduce costs, including canceling all 2009 management bonuses.
There aren’t many shocking statements in Ford’s plan. It can essentially be broken up into two themes: Cost savings and future products.
Cost savings
Ford confirmed in a statement released to the media that it is selling its fleet of five corporate jets. As we previously reported, Mulally plans to take a salary cut to $1 annually if the U.S. government approves the loan, though there’s no timeline detailing when his compensation would increase. Ford also confirmed that it will continue cutting dealers and the number outsourcing suppliers it will consider for work. Ford looks to cut the number of potential suppliers from 3,400 to 750.
All bonuses to be paid in 2009 have been canceled, the automaker said, adding that no employee will receive a merit increase in 2009, either.
Future products
Ford said it plans to invest $14 billion on advanced technologies and products over the next seven years. It said that by 2014, more than 90 percent of the models Ford, Lincoln and Mercury offer will be considered “Advanced Technology Vehicles” by the U.S. Energy Independence and Security Act.
At next month’s North American International Auto Show in Detroit, Ford says it will discuss in detail the company’s “accelerated vehicle electrification plan,” which will include a family of hybrid vehicles on the market by 2012 and battery-electric vehicles for commercial use in 2010 and a sedan in 2011.
Ford’s plan doesn’t specifically detail negotiations the automaker is currently having with the UAW.
