Ford Expects to Break Even by 2011
Each of Detroit's Big Three automakers are submitting their pleas to Congress today for $25 billion in bridge loans to help them stay in business, they say. Congress asked for details on how Detroit would spend the money and GM, Ford and Chrysler are trying to comply.
Details of the plans are starting to come out. Ford just released theirs, which you can read in its entirety here.
Here are some of the highlights:
-- Ford expects pre-tax results to break even by 2011.
-- Ford plans to build electric vehicles.
-- Ford will sell its corporate aircraft.
-- The automaker is asking for $9 billion of the $25 billion bridge loans.
-- It does not anticipate a liquidity crisis next year, barring a bankruptcy.
-- It plans for an investment of about $14 billion in the U.S. on advanced technologies and products for fuel efficiency over next seven years.
-- It is in discussions with United Auto Workers to further reduce cost structure.
-- Chief executive Alan Mulally would work for a salary of $1 per year if Ford gets bailout money.
-- The company is canceling all 2009 bonuses for management worldwide, bonuses for all employees in North America.
-- It plans to keep reducing its dealer and supplier base, and estimates it will have 3,790 dealers by end of this year.
December 2, 2008; 11:08 AM ET
Categories: The Ticker | Tags: Chrysler, Ford, General Motors, automakers
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Posted by: B2O2 | December 2, 2008 12:05 PM | Report abuse
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