Key Elements of Ford's Way Forward Accelerated Restructing

Dearborn MI September 15, 2006; Reuters reported on the Ford "Way Forward" plan:

-- Ford will cut its North American salaried work force by about a third, or 14,000, including 4,000 positions already eliminated in the first quarter.

-- Ford will offer buyout packages to all 75,000 Ford and Automotive Components Holdings U.S. hourly employees.

-- Ford will accelerate by four years its previously announced goal of reducing 25,000 to 30,000 North American employees by the end of 2012. The reductions now will be completed by the end of 2008.

-- Ford said the cuts will contribute to reducing ongoing annual operating costs by about $5 billion.

-- Ford said it will suspend its quarterly dividend, beginning in the fourth quarter.

-- Ford said it will not return its North American automotive unit to profitability by the end of 2008 as previously planned. Citing further market share declines, Ford said that the unit will not be profitable before 2009.

-- Ford's North American auto unit lost $1.6 billion before taxes in 2005. It lost another $1.3 billion before taxes and one-time charges through the first half of this year.

-- Ford will sell or close all former Visteon plants by the end of 2008.

-- Ford said it will close two additional plants:

--A stamping plant in Maumee, Ohio.

--An engine plant in Essex, Ontario.