Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor — Corporate Update (October 2011)
9 slides from Ford Mtr Co Del's corporate update, Oct 20, 2011
Slide 1: 2011 UAW - Ford U.S. Hourly Labor Agreement
2011 UAW - FORD U.S. HOURLY LABOR AGREEMENT October 20, 2011
Slide 2: Agenda
SLIDE 1 AGENDA • Overview • Operating Agreement • Profit Impacts of Labor Agreement • Summary
Slide 3: Overview
SLIDE 2 OVERVIEW • Our Plan remains the same – Aggressively restructure to operate profitably at the current demand and changing model mix – Accelerate development of new products our customers want and value – Finance our Plan and improve our balance sheet – Work together effectively as one team, l
Slide 4: Operating Agreement -- Wages and Benefits
SLIDE 3 OPERATING AGREEMENT -- WAGES AND BENEFITS • Compensation -- no general wage increase or COLA; signing bonus of $6,000; annual inflation protection lump sum of $1,500 and operational performance bonus of $250 • Entry level wages -- remain generally consistent with the prior agreement with ann
Slide 5: Operating Agreement -- Productivity Improvements
SLIDE 4 OPERATING AGREEMENT -- PRODUCTIVITY IMPROVEMENTS • Competitive work practices -- includes a number of actions that will improve utilization of our facilities and efficiency – Ability to implement alternative work schedules and additional production shifts, enabling improved capacity utilizat
Slide 6: Operating Agreement -- Product and Capacity
SLIDE 5 OPERATING AGREEMENT -- PRODUCT AND CAPACITY • Ford will invest $6.2 billion over the contract period in U.S. plant-related expenditures and create 12,000 hourly positions • Confirmed product commitments for: – Chicago Assembly – Kentucky Truck – Dearborn Truck – Louisville Assembly – Kansas
Slide 7: Profit Impact of Labor Agreement
SLIDE 6 PROFIT IMPACT OF LABOR AGREEMENT Compensation Changes Expected To Increase Costs Less Than 1% Annually; Increased Utilization Represents A Substantial Profit Opportunity Avg. Annual 2011 2012 2013-2015 (Mils.) (Mils.) (Mils.) Lump Sum Payments (280)$ (80)$ About $(80) Other Compensation / Be
Slide 8: Summary
SLIDE 7 SUMMARY • The new 2011 UAW-Ford contract will support our Plan and improve our competitiveness • The contract’s operational improvements will allow the Company to increase manufacturing utilization and efficiency -- increasing our ability to match quickly supply to demand • This agreement pr
Slide 9: Safe Harbor
SLIDE 8 Safe Harbor • Decline in industry sales volume, particularly in the United States or Europe, due to financial crisis, recession, geo-political events, or other factors; • Decline in market share or failure to achieve growth; • Lower-than-anticipated market acceptance of new or existing produ