The basics of the acceleration:
North America “Way Forward” plan accelerated to deliver faster progress through 2008:(emphasis mine)Operating costs to be reduced by approximately $5 billion, including:
Salaried-related work force reduced by a third, the equivalent of about 14,000 positions.
Ford, UAW leadership agree on buyout offers for all U.S. Ford and ACH hourly employees.
Further manufacturing capacity reductions planned.
All ACH operations to be sold or closed by the end of 2008.
More products to be delivered faster, including:
70 percent of Ford, Lincoln and Mercury products by volume will be new or significantly upgraded between now and the end of 2008.
Ford’s truck leadership is fortified.
Growth segments, including crossovers, are prioritized.
All-new Ford full-size crossover to go on sale in 2008.
Ford Motor Company’s financial outlook is revised:Full-year automotive profitability in North America not expected before 2009.
South America and Ford of Europe still expected to be solidly profitable in 2006. However, full-year operating losses now expected in 2006 for Asia Pacific and Africa, and the Premier Automotive Group.
Ford Motor Company’s 2006 year-end liquidity is expected to include automotive gross cash of about $20 billion, including the effects of $3.4 billion of VEBA.
Ford Motor Company’s Board indicates that it will suspend payment of the quarterly dividend on its common and Class B Stock beginning in the fourth quarter of 2006.
Well it looks like Ford finally realized that they have to put out vehicles that people want to buy to be profitable. It's good to see they are going to put great emphasis on that, that will be their salvation.