Business
Ford Accelerates Way Forward
Ford Accelerates Way Forward.
About this update from Fdm Group (holdings) Plc
[{"type":"text","content":"\n Ford Motor Co\n15 September 2006\n\n\nFORD ACCELERATES 'WAY FORWARD'\n\nNEW PRODUCTS, LEANER STRUCTURE FURTHER DEFINE TURNAROUND\n\n\nNorth America 'Way Forward' plan accelerated to deliver faster progress through \n2008:\n\n• Operating costs to be reduced by approximately $5 billion, including:\n - Salaried-related work force reduced by a third, the equivalent of \n about 14,000 positions.\n - Ford, UAW leadership agree on buyout offers for all U.S. Ford and ACH \n hourly employees.\n - Further manufacturing capacity reductions planned.\n - All ACH operations to be sold or closed by the end of 2008.\n• More products to be delivered faster, including:\n - 70 percent of Ford, Lincoln and Mercury products by volume will be new \n or significantly upgraded between now and the end of 2008.\n - Ford's truck leadership is fortified.\n - Growth segments, including crossovers, are prioritized.\n - All-new Ford full-size crossover to go on sale in 2008.\n\nFord Motor Company's financial outlook is revised:\n• Full-year automotive profitability in North America not expected before \n 2009.\n• South America and Ford of Europe still expected to be solidly profitable in \n 2006. However, full-year operating losses now expected in 2006 for Asia \n Pacific and Africa, and the Premier Automotive Group.\n• Ford Motor Company's 2006 year-end liquidity is expected to include \n automotive gross cash of about $20 billion, including the effects of $3.4 \n billion of VEBA.\n• Ford Motor Company's Board indicates that it will suspend payment of the \n quarterly dividend on its common and Class B Stock beginning in the fourth \n quarter of 2006.\n\n\nDEARBORN, Mich., Sept. 15, 2006 - Ford Motor Company (NYSE: F) today announced\nplans to further reduce its capacity and work force, and ramp up new product\nintroductions as it accelerates its North America 'Way Forward' turnaround plan.\n\nFord will cut its North American salaried-related work force by about a third\nand offer buyout packages to all Ford and Automotive Components Holdings (ACH)\nhourly employees in the U.S. The reductions will contribute significantly to\nreducing ongoing annual operating costs by about $5 billion. In addition, Ford\nwill renew 70 percent of its North American product lineup by volume by the end\nof 2008. \n\nThe announcements are being made this morning i...