Ford Boss Outlines Radical Overhaul

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Washington DC December 22, 2006; The AIADA newsletter reported that after placing the company's assets for collateral in a $23.5 billion credit deal, Ford's new CEO Alan Mulally last week told directors of his plan to plow through "gut-wrenching" change to achieve profitability by 2009, reported The Wall Street Journal.

According to people familiar with the situation, during the board meeting Mulally walked directors down to a secret "war room," where color-coded papers – red, yellow, and green – were mounted on four walls indicating the various problems facing the automaker, the severity of the problems and what division is accountable for each.

From the Journal:
-Red-coded charts show Ford's plunging U.S. market share, its North American financial forecast and its material-cost disadvantage.
-Yellow charts show Americans' move away from SUVs and trucks.
-Green charts show Ford's effort to cut nearly half its 82,000 North American factory workers through buyouts."

As part of a push for uniformity in Ford's units, Mr. Mulally is likely to pare the automaker's eight brands in favor of more uniform and efficient models that have a "Ford feel."

In addition, Mulally will move to combine Ford's global operations, modifying its current structure of separate businesses by brand and region. Ford's U.S. market share has plunged to 16 percent from 25 percent since 1995. Toyota is expected to pass it as the No. 2 selling automaker in the U.S. next year.