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Ford Unveils Plan, Seeks $9B

Promises to be profitable by 2011

By Kevin Spak, Newser Staff

Posted Dec 2, 2008 11:08 AM CST

(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.

[Images (3)]

[Quotes (2)]

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. (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. (AP Photo/Ford Motor Co)

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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.

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Ford Unveils Plan, Seeks $9B