All right, we got up this early to get Ford's announcement first thing, so let's get to it. Ford has announced, in a nutshell, that Way Forward 2.0 will include a further reduction in its production capacity and work force combined with a "ramp up" of new product federal government joint travel regulations introductions. The company also announced that a return to profitability is now not expected until at least 2009. The entire announcement can be found after the jump, but we'll highlight a few important points here. For one, the Lincoln Town Car will live on! After the Wixom, federal government joint travel regulations MI plant closes, production of the Town Car will move to the St. Thomas, Ontario plant. Also, the large crossover based on the Ford Fairlane concept will be on sale in 2008. In the area of cost savings, the Blue Oval has announced that 14,000 salaried-related positions will be eliminated, which is a big jump in addition to the prior 4,000 salaried positions that were cut in Q1. Here's a big one: the company is moving up its goal of reducing its workforce by 25,000 to 30,000 federal government joint travel regulations workers from 2012 to the end of 2008. Ford subsidiary Automotive Components Holding will also see all of its facilities either sold or closed by the end of 2008, as well. Finally, the impression we got is that Ford is serious about shrinking. In terms of production, capacity is being reduced to 3.6 million units, 26% under 2005 levels. Market share is expected to decrease to around 14 to 15 percent and then level off, too. We now have a list of plants that will either federal government joint travel regulations be closed or idled by 2008, which can be found after the jump. There's lots to chew on here folks. Check out the complete release federal government joint travel regulations with details after the jump and analysis will be forthcoming. [Source: Ford]
South America and Ford of Europe still expected to be solidly profitable in 2006. However, full-year operating losses now expected in 2006 for Asia Pacific and Africa, and the Premier Automotive Group.
DEARBORN, federal government joint travel regulations Mich., Sept. 15, 2006 Ford Motor Company [NYSE: F] today announced federal government joint travel regulations plans to further reduce its capacity and work force, and ramp up new product introductions as it accelerates its North America "Way Forward" turnaround plan. Ford will cut its North American salaried-related work force by about a third and offer buyout packages federal government joint travel regulations to all Ford and Automotive Components Holdings (ACH) hourly employees in the U.S. The reductions will contribute significantly to reducing ongoing annual operating costs by about $5 billion. In addition, Ford will renew 70 percent of its North American product lineup by volume by the end of 2008. The announcements are being made this morning in an employee address led by Ford Executive Chairman federal government joint travel regulations Bill Ford, President and Chief Executive Officer Alan Mulally, President of The Americas Mark Fields and Chief Financial Officer Don Leclair. "These actions have painful consequences federal government joint travel regulations for communities and many of our loyal employees," said Bill Ford. "But rapid shifts in consumer demand that affect our product mix and continued high prices for commodities mean we must continue working quickly and decisively federal government joint travel regulations to fix our business. Mark Fields and his team deserve credit for the accelerated Way Forward strategy, which puts us on an even faster federal government joint travel regulations product-driven path to success. "Alan Mulally's experience in turning around a major industrial company will help guide the implementation of these measures as he assumes leadership of the company," Bill Ford continued. "The actions we announce today coupled with the North American production cuts we announced last month, federal government joint travel regulations the strategic alternatives we are considering for Aston Martin and a push for greater progress from our operating units and brands around the world are part of a series of actions that Alan and our entire global federal government joint travel regulations team will be taking to put the company on a path to sustained profitability and success." Mulally, whose appointment as CEO of Ford was announced last week, echoed support for the Way Forward plan and for the team leading the company's North American turnaround. "The steps we are announcing today are clearly needed to ensure the ultimate turnaround of the business in Ford's biggest and most important market," Mulally said. "Although the process has been under way for months, I have had a chance to review these actions and am convinced that they provide federal government joint travel regulations the sound, product-led underpinnings and cost reductions we will need to achieve our goals. I look forward to helping with the implementation. "Turnarounds of this magnitude succeed when capacity and costs are aligned federal government joint travel regulations with a realistic expectation of demand," Mulally continued. "These actions are certainly consistent with that goal. We will focus intensely on the needs of our customers in North America, and around federal government joint travel regulations the world, by pulling forward new products federal government joint travel regulations and creating new markets. We are a team united by a shared vision to build the best automobiles in the world at Ford Motor Company." Fields said the Way Forward federal government joint travel regulations plan will continue to focus every part of the business on the customer building stronger Ford, Lincoln federal government joint travel regulations and Mercury brands; strengthening the company's North American product lineup; improving quality, and accelerating progress federal government joint travel regulations on productivity and competitive costs. "The fundamentals of our Way Forward plan have not changed, but our timetable has changed dramatically," said Fields. "We've taken a sobering look at the industry and our own business, and the entire team in North America has a renewed sense of urgency and a clear view of what it will take to position this business for profitability. "We know our decisions bring more pain to the business in the short-term, and they require sacrifice from our employees, labor unions, federal government joint travel regulations dealers and suppliers," he added. federal government joint travel regulations "But, together, we are building a much stronger Ford Motor Company and a more secure future for us all." Fields said the team will continue to push to move further and faster throughout the business. "Our work is far from over. We recognize that the competitive landscape and cost pressures have significantly challenged our traditional business model, and that recognition is driving more investment in small cars and crossovers, even as we continue to position federal government joint travel regulations ourselves to remain the truck leader," Fields federal government joint travel regulations said. "We will remain quick and decisive in executing our Way Forward plan and flexible in reacting to changing conditions in the future." federal government joint travel regulations Market share declines, reflecting primarily segment shifts, and higher-than-planned federal government joint travel regulations raw material costs will mean full-year federal government joint travel regulations profitability for Ford's North American auto operations is not expected before 2009. "Clearly, we could have cut product programs and maintained our goal of North American profitability in 2008," Fields said. "But, even as we further reduce our costs and capacity and make tough-but-necessary decisions throughout our business, we cannot and will not retreat from the critical investments to deliver the right products for our customers." A summary of the North America Way Forward actions to be implemented by the end of 2008 and resulting financial impact federal government joint travel regulations follows. federal government joint travel regulations Product-Led Turnaround
70 percent of Ford, Lincoln and Mercury products by volume will be new or significantly upgraded from today through the end of 2008. The new lineup builds on Ford's strength as America's truck leader while expanding in growth segments, such as crossovers.
Ford will introduce an all-new full-size crossover based on the Ford Fairlane concept. The seven-passenger vehicle for modern families goes on sale in 2008 and will be produced at Ford's Oakville ( Ontario, Canada) Assembly Plant.
Ford will continue to lead the American truck market with a new Super Duty pickup confirmed to go on sale in early 2007 and an all-new F-150 pickup confirmed to go on sale in 2008. The vehicles boast powertrain, design and feature upgrades.
The new Lincoln MKS flagship sedan will go on sale in 2008 packed with more technology and features than any prior Lincoln, including all-wheel drive. Current plans are to produce the vehicle at the company's Chicago Assembly Plant.
Lincoln will continue offering the Lincoln Town Car to meet ongoing demand. After assembly ends at Ford's Wixom ( Mich.) Assembly Plant in 2007, Ford intends federal government joint travel regulations to move Town Car production to Ford's St. Thomas ( Ontario, Canada) Assembly Plant. St. Thomas will be reduced to one shift of production, as previously was announced.
Product development work is intensifying through 2008 on creating new small cars and even more crossovers federal government joint travel regulations that will go on sale in the future. These vehicles will be based on the company's global vehicle architectures, including "B" and "C" platforms not presently used in North America.
Major investments continue in new gasoline, flexible-fuel, diesel, hydrogen and hybrid powertrains, federal government joint travel regulations including additional E-85 ethanol-powered and hybrid vehicles on the road by the end of 2008. In addition, two out of every three Ford, Lincoln and Mercury vehicles will be offered with fuel-saving 6-speed transmission technology by the end of 2008.
Salaried-related costs will be reduced through the elimination of the equivalent of about 14,000 salaried-related positions, which represents approximately a third of Ford's North American salaried work force. The reduction includes the equivalent of 4,000 positions eliminated in the first quarter of 2006. The additional reductions will be achieved through early retirements, voluntary separations and, if necessary, involuntary separations with most employees federal government joint travel regulations expected to depart by the end of the first quarter in 2007.
An agreement with the UAW will expand early retirement offers and separation packages to all Ford U.S. hourly employees, including Ford employees at the company's ACH plants. Employees will begin receiving details by mid-October, and those accepting offers will leave the company by September 2007.
Ford will accelerate by four years its previously announced goal of reducing 25,000 to 30,000 North American manufacturing employees by the end of 2012. The reductions now will be completed by the end of 2008.
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