More Cuts Planned as Ford Shifts Out of Reverse

Investors rally for Mulally as turnaround picks up speed
By Rob Quinn,  Newser Staff
Posted Apr 23, 2008 2:41 AM CDT
The company sign hangs over the hood of a Fusion sedan at a Ford dealership in the east Denver suburb of Aurora, Colorado.   (AP Photo/David Zalubowski)
camera-icon View 2 more images

(Newser) – Ford was in the worst shape of Detroit's Big 3 a couple of years ago but chief executive Alan Mulally's sweeping changes have put the firm back on the road to profitability, the Wall Street Journal reports. The company has slashed jobs, and will likely cut more, and ditched its Jaguar and Land Rover brands. Insiders say Volvo could be the next to go.

Mulally is also expected to mothball the Mercury line, freeing the company to focus on its core Ford and Lincoln brands. A slumping economy and record fuel costs could still hit the firm's recovery hard but many think Ford's changes will leave it well-placed to come racing out of the downturn. "This is a classic example of how one can shrink to grow," an industry analyst said.