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Ford Presents Reorganization Plan to Congress
Area Development Online News Desk (12/02/2008)
Ford Motor Company says it can restore profitability in 2011 if
Congress approves up to $9 billion in emergency financing and if its
two major U.S. rivals survive, according to a plan the company
submitted to the Senate Banking Committee this morning. The
reorganization calls for cost savings with unionized workers and a
company investment of $14 billion to develop new technologies for fuel
efficiency. CEO Alan Mulally would work for a salary of $1 per year if
the company accesses any government aid, and all North American
employee bonuses, as well of those of overseas managers, will be
canceled in 2009. Ford also says in its plan that its fortunes are
closely tied to those of its rivals, General Motors (GM) and Chrysler:
“Because our industry is an interdependent one, with broad overlap in
supplier and dealer networks, the collapse of one or both of our
domestic competitors would threaten Ford as well. It is in our own
self-interest, as well as the nation’s, to seek support for the
industry at a time of great peril to this important manufacturing
sector of our economy.” GM and Chrysler are also expected to present
reorganization plans; all three CEOs are scheduled to appear before
Congressional committees later this week as they seek up to $25 billion
in government loans.
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