Ford proposes strategies to operate profitably at the current demand and vehicle mix.
Ford’s organizational restructuring plan takes place across all operations, including manufacturing, supplier relationships, dealer relationships, consumer credit operations, and salaried and hourly personnel.
Ford addressed manufacturing concerns, noting that approximately 50 percent of future U.S. manufacturing capacity would be dedicated to producing more fuel-efficient small and medium-size vehicles. As well, nearly all U.S. assembly plants will have flexible body shops to respond quickly to consumer demands.
Ford is also strengthening its relationship with U.S.-based suppliers, with specific attention to women and minority suppliers.
To address an overcapacity of dealers, Ford intends to downsize and restructure in 130 metropolitan market areas. And dealers can continue to rely on the wholly- owned subsidiary, Ford Motor Credit Company for wholesale, retail and lease financing programs, together with capital and facility loan programs.
Ford will have reduced salaried personnel costs by 40 percent over the past three years, including a 10 percent reduction effective February 2009. There have been significant changes to Compensation and Benefit packages as well, such as eliminating merit increases and bonuses due to be paid in 2009.
When it comes to hourly personnel, Ford is working closely with the UAW to transform our total labor costs. Through these efforts, as well as capping costs on benefits, Ford will realize a total of $5.5 billion in annualized operating cost reductions from 2005 through 2008.
To read the section on restructuring, click here.
Tags: automotive industry, Ford manufacturing, Senate Banking Committee, UAW
