Skip to: Content
Skip to: Site Navigation
Skip to: Search
SUNDAY, NOVEMBER 8, 2009
| Subscribe to Newser's RSS feeds RSS | Follow Newser on Twitter Twitter


1

Ford Unveils Plan, Seeks $9B

Promises to be profitable by 2011

Share

(Newser) – Ford unveiled a new plan to restructure its operations today and predicted a return to profitability—or at least break-even—by 2011, the Wall Street Journal reports. The plan calls for aggressive cost cutting and an increased focus on fuel efficiency. One of the costs on the chopping block? CEO Alan Mulally’s salary, which would fall to $1 per year if the company gets the $9 billion government loan it’s asking for.

Ford doesn’t foresee a liquidity crisis, but wants the government credit line as a “safeguard” against worsening conditions. “We want to come blasting out as a global, green, high-tech company ,” said Chairman William Ford Jr, adding that the recovery plan “isn’t just about slashing and burning, but about building for the future.” Some slashing may be necessary—the company will, for example, explore selling its Volvo brand.

Unsold 2009 Ranger pickup trucks sit at a Ford dealership in Frederick, Dacono, Colo., Thursday, Nov. 27, 2008.
Unsold 2009 Ranger pickup trucks sit at a Ford dealership in Frederick, Dacono, Colo., Thursday, Nov. 27, 2008.   (AP Photo/David Zalubowski)
A consumer walks through a cutaway 2008 Ford Taurus crash car displayed at the Los Angeles Auto Show in Los Angeles on Friday, Nov. 21, 2008.
A consumer walks through a cutaway 2008 Ford Taurus crash car displayed at the Los Angeles Auto Show in Los Angeles on Friday, Nov. 21, 2008.   (AP Photo/Damian Dovarganes)
In this photo provided by Ford Motor Co., the 2010 Mustang sits on display at the Los Angeles Auto Show, Wednesday, Nov. 19, 2008, in Santa Monica, Calif.
In this photo provided by Ford Motor Co., the 2010 Mustang sits on display at the Los Angeles Auto Show, Wednesday, Nov. 19, 2008, in Santa Monica, Calif.   (AP Photo/Ford Motor Co)
« Prev« Prev | Next »Next » Slideshow

I think I'm OK where I am. - CEO Allan Mulallay, when asked during the previous hearings if he'd accept a $1 salay. Mulallay made $21.67 million in 2007.

It isn't just about slashing—we've already done that slashing and burning—but about building for the future. - William Ford Jr.

« Prev« Prev | Next »Next » Slideshow
OFF THE GRID
11.6.09
Galleon Scandal: Shocked, Shocked by Insider Trading
11.5.09
Rupert Murdoch Is Mad but Cute
1 comment
VIEWING:
 
PaleRider
Dec 2, 08 2:14 PM CST
I think it's time we let companies that make horrible business decisions like Ford go bankrupt and restructure. They have been building car that blow up, catch on fire and fall apart for years with no real sense of what the people want. How about that new Truck, "the Raptor" that burns gas and gets abysmal gas mileage that they are coming out with despite the fact that they can't sell the trucks on the lot that they have right now due to the current trend towards fuel efficiency. Reply
Vote up! Vote down!
0
LEAVE A
COMMENT Comment Policy
Facebook ConnectPost this comment to Facebook?

After connecting you will have the option to post your comment on your Facebook profile.

 

Related Newser Stories

199 Stories

Auto Turnaround

@Ford: Give Social Media Some Credit

Ford's finally profitable, and coincidentally, it owns the web

Nov 2, 09 1:29 PM CST
(Newser) - You’ve heard all the standard reasons for Ford’s $1 billion third-quarter profit—cost-cutting, layoffs, cash for clunkers, and so forth. Lost in the hubbub is another crucial element: Ford’s social media prowess. The company's social media guru has been extremely successful at drumming up buzz for its... More »

MORE ABOUT:
social networking • Ford • auto industry • Twitter • social media

 In Congress, 535 New 
 GM Boardmembers 

Legislators strong-arm automaker to keep dealerships, factories open

Oct 29, 09 7:02 AM CDT
(Newser) - GM might not have realized when it took $58 billion in bailout money that it would now be beholden to members of Congress, who have been acting like 535 new board members as they angle for their constituents' (and their own) interests. Dems and Republicans alike have pressured companies to... More »

MORE ABOUT:
Congress • General Motors • auto industry • Jay Rockefeller • bailout • auto bailout

 Ford Looks to Sell 
 Volvo to China 

Geely is only bidder remaining for Swedish subsidiary

Oct 28, 09 8:52 AM CDT
(Newser) - Ford put its Volvo unit up for sale last December, and it's narrowed the possible buyers to just one bidder: a Chinese consortium led by Geely, the country's largest private automaker. Geely first approached Ford about the purchase in summer 2008 and is prepared to pay about $2 billion, less... More »

MORE ABOUT:
mergers and acquisitions • Ford • Volvo • auto industry • Ford Motor Co. • Geely Automobile Holdings

ANALYSIS

 Saturn: GM's Biggest Mistake  

Brand was an unsustainable distraction from the start

Oct 2, 09 5:39 PM CDT
(Newser) - As General Motors’ Saturn experiment ends with a whimper, it’s important to understand that the brand was a failure from the start. Some obituaries blame GM for not providing a fuller roster of vehicles to build customer loyalty—but if anything, the automaker gave Saturn too much, writes Mark... More »

MORE ABOUT:
Toyota • General Motors • Detroit • Saturn • Hyundai • auto industry • Big Three

Recession Crushes
White-Collar Michigan

Layoffs, property price plunge leaves middle-aged workers in limbo

Sep 17, 09 1:26 AM CDT
(Newser) - Tens of thousands of middle-aged white-collar workers have been left jobless and stranded in Michigan by the recession, the Wall Street Journal reports. Auto industry veterans laid off by the Big Three are finding themselves competing against against younger people for a smattering of job openings. With property prices down... More »

MORE ABOUT:
Chrysler • General Motors • Detroit • Michigan • recession • Ford • unemployment • auto industry • Big Three • white collar

199 Stories


Mulally to (gasp!) drive a car to hearings
New York Daily News

Big Three need to shed brands
New York Times


Business  •  Politics 
TwitterFollow @NewserBusiness on Twitter

 
Ford • Alan Mulally • restructuring • auto industry • Big Three • bailout • Bill Ford Jr.

from our news partners