Friday, December 5th, 2008
Ford proposal to U.S. Congress outlines strategy for viability.
In Ford’s proposal to the U.S. Congress, entitled “Ford Motor Company Business Plan”, Ford outlined its four-pillar plan to confront the critical issues facing the automotive industry. The plan is summarized as “One Ford – One Team – One Plan – One Goal.” The proposal also covers the current business environment and moves on to present Ford’s strategy to transform itself to better compete by developing safer, greener and even better quality vehicles. It also includes answers to specific questions posed by Speaker of the House Nancy Pelosi and Majority Leader Harry Reid.
The four key pillars addressed
Aggressive Restructuring,
New Product Development,
Financing and Improving the Balance Sheet, and
Working as a Team More Effectively. Ford notes, that while there is much work to be done, the Company did not wait until the current crisis to begin organizational change efforts, but had already begun a fundamental restructuring, from which early efforts had shown promise.
To read the complete Ford Motor Company Business Plan that was submitted to the Senate Banking Committee,
download the PDF here.
Tags: automotive industry, Ford Motor Company, Senate Banking Committee, U.S. Congress
Posted in
The Ford Story - text |
No Comments »
Friday, December 5th, 2008
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
Posted in
The Ford Story - text |
No Comments »
