01-18-2007, 12:08 AM
Ford's Restructuring ââ¬ÅAhead Of Schedule,ââ¬Â CEO Says
The Daily Auto Insider
Tuesday, January 15, 2007
January 2007
Ford is moving faster than expected on its revitalization plan ââ¬â which is dubbed "Way Forward" ââ¬â The Wall Street Journal reported, citing its chief executive, Alan Mulally.
"I would characterize that we are ahead of schedule," Mulally told an analyst conference in Dearborn, Mich.
He said the company is looking to "aggressively restructure" itself to reduce capacity to match demand and change its model mix. He also committed to strengthening the company's products on an annual basis.
Ford, which reported a loss of about $7 billion in the first nine months of 2006, is cutting more than 30,000 U.S. hourly jobs this year and closing seven assembly plants by 2010. It has committed to return to black ink by 2009.
Ford wants to reduce its total North American work force by 29 percent to about 92,000 by the end of 2008 from the current level of some 130,000 and close 16 plants.
Among the ways Ford plans to reduce costs, in addition to downsizing itself, are better global coordination among the company's various business lines, consolidating its dealer network, and revising its entire brand portfolio across the world.
He also said the company has not made any decisions regarding the possible sale of its Premier Automotive Group, which includes the Jaguar and Land Rover brands, but continues to review its long-term role in the company. He said that if a brand "doesn't make sense for the Ford portfolio, maybe it makes sense for someone else," the WSJ noted.
Mulally also said that the company is focused on accelerating new product development, while bringing its models in line with changing consumer demand and achieving profitable growth.
The Daily Auto Insider
Tuesday, January 15, 2007
January 2007
Ford is moving faster than expected on its revitalization plan ââ¬â which is dubbed "Way Forward" ââ¬â The Wall Street Journal reported, citing its chief executive, Alan Mulally.
"I would characterize that we are ahead of schedule," Mulally told an analyst conference in Dearborn, Mich.
He said the company is looking to "aggressively restructure" itself to reduce capacity to match demand and change its model mix. He also committed to strengthening the company's products on an annual basis.
Ford, which reported a loss of about $7 billion in the first nine months of 2006, is cutting more than 30,000 U.S. hourly jobs this year and closing seven assembly plants by 2010. It has committed to return to black ink by 2009.
Ford wants to reduce its total North American work force by 29 percent to about 92,000 by the end of 2008 from the current level of some 130,000 and close 16 plants.
Among the ways Ford plans to reduce costs, in addition to downsizing itself, are better global coordination among the company's various business lines, consolidating its dealer network, and revising its entire brand portfolio across the world.
He also said the company has not made any decisions regarding the possible sale of its Premier Automotive Group, which includes the Jaguar and Land Rover brands, but continues to review its long-term role in the company. He said that if a brand "doesn't make sense for the Ford portfolio, maybe it makes sense for someone else," the WSJ noted.
Mulally also said that the company is focused on accelerating new product development, while bringing its models in line with changing consumer demand and achieving profitable growth.