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.
12/02, 11:04 AM
posted by:
A4
isnt that what its supposed to be broken up into? cost saving a future products? what did you expect lln? the lollipop guild to start building their cars?
12/02, 11:26 AM
posted by:
Sal Collaziano
No changes with the UAW contract, huh?
12/02, 11:39 AM
posted by:
yarddog82abn
Ford has step-up! now if the head of of the UAW can work of a $1.00…
12/02, 1:14 PM
posted by:
CP92804
And I suppose that you folks commenting on what the union is going to give up in wages are taking big pay cuts also? I think EVERYONE in this country makes more than they should so we should all take a cut in pay so that the CEO of the company you work for can make more 14,000,000 just is not enough to live on for guys like Mullaly and Wagoner. No I am not union nor do I wish to join one, I am simply tired of the American working man being demonised for wanting more pay and benefits. Many of you obviously are to young to have had grandparents that worked in the steel mills in the early 1900’s with dangerous working conditions and very minimal pay, without unions we would still be there. Yes the unions need to change with the times but we sure dont need them to go away completely.
12/02, 1:36 PM
posted by:
johnnycanuck
Actually I think the education system in the US and Canada needs to change so that our future labour force isn’t as dependent on unions to make a decent wage.
12/02, 1:54 PM
posted by:
howsmydriving
Any financial assistance to Ford should require that they kill Mercury and stop pretending that Lincoln is a luxury brand.
12/02, 2:40 PM
posted by:
Lariat Luxury Locomotive Liner No.3
@johnnycancuck, dammit JC, I’m liking my Canadian friend more and more as you understand the real problems!
12/02, 7:00 PM
posted by:
Gregsy
I think it’s pretty funny that Congress, who is over $10,000,000,000,000 in debt and spends over $621,000,000 on a Capitol Welcome Center, is trying to tell the auto companies how to run their business. Irony is hilarious.
12/02, 7:43 PM
posted by:
Quiet American
Realistically, It is a big mistake for the big three to gamble their future on “electrification” for the next few model years. ELECTRIC CARS ARE NOT GOING TO APPEAL TO ANYONE BUT FRINGE CONSUMERS FOR MANY YEARS. How many people are going to buy a really expensive car that can’t pull highway speeds for more than a few miles with an AC going and a couple of passengers.
People will flock to Ford to buy internal combustion cars if they do it correctly. Start by Developing a contemporary and desirable American design language. The ovalesque 2nd generation taurus and the skull numbingly mundane J. Mays follow-up attempts were not desirable. They did not represent anything definable as even style, much less American style. To making the running gear “right”, start with European chassis dynamics with some lightweight materials used for construction. Saving weight is less expensive and more practical than technology that doesn’t really exist. Add IC engines that are competitive and practical. Make HP ample but not excessive. Today’s family sedans can out accelerate most 60’s era muscle cars and Ferrari’s made more than 20 years ago. I’d rather have my car lose a little bit of time in irrelevant magazine slalom, roll-on and 0-60 acceleration tests than pay lots of money to haul around batteries that only get charged during deceleration. Factor in the requisite narrow, high pressure, hard compound tires that makes stopping this mass in an emergency so much fun and hybrids become even more of a car for those who don’t get physics.
By the way, UAW people, you have to be competitive in cost with employees at the non-big three domestic plants. All of us who aren’t nuts (dang, I hope that’s me) want to see you survive. Your standing in heavy traffic, you have to take of the blinders to not fall out of the occupational gene pool. You have proven that you can be as productive and as successful at quality as any other employees in the world. Now you have to cross the competitive cost threshold.
Get real Ford and the UAW.
.