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Ford Presents Reorganization Plan to Congress

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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