Ford Restructuring?

USA TODAY: DETROIT -- Ford Motor is preparing a restructuring of its operations meant to head off a money crisis that could stretch into next year.

''We are in a cash crisis like none we have experienced in recent memory,'' manufacturing chief James Padilla wrote in a recent memo to his staff, according to one Ford official. ''And we simply cannot afford to underestimate its gravity.''

Ford's market share was down to 21.8% last month. But perhaps more troubling is its earnings decline and sinking cash reserves, drained by recalls and higher marketing costs.

* Cash reserves are expected to be at $11 billion at the end of this year, down from $16.5 billion at the end of 2000 and $23.5 billion in 1999.

* Pretax earnings will be about $2 billion this year, down about $8 billion from 2000.

* Cost per vehicle has climbed by $1,000 over the past 2 to 3 years, making it more difficult to turn a profit when the economy and sales slip.

The job of cost-cutting has been handed to Nicholas Scheele, head of North American operations. Scheele has told employees that ''everything is on the table.'' He is gunning for any unprofitable ventures that aren't part of a ''back to basics'' plan -- building higher-quality and more competitive cars and trucks.

E-commerce initiatives and businesses such as aftermarket repair and detailing shops are on the block. And Ford could add to the 4,000 to 5,000 salaried jobs already cut.

''I think you'll see us doing things over the course of the next few months, not making one big announcement of changes,'' spokesman Jim Bright says.