Ford Accelerates Way Forward Plan, Will Cut One-Third of Salaried Jobs and Make Major Shift in Product Lineup

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Washington DC September 15, 2006; The AIADA newsletter reported that Ford Motor Co. announced plans this morning to further reduce its capacity and work force and ramp up new product introductions as it accelerates its North America "Way Forward" turnaround plan.

Under the revised plan, operating costs will be reduced by approximately $5 billion, including about 14,000 salaried job cuts and buyout offers for all of Ford's hourly UAW employees.

The automaker also announced plans to make a major shift in its product lineup, as 70 percent of Ford, Lincoln and Mercury products by volume will be new or significantly upgraded from today through the end of 2008.

Total market share for Ford, Lincoln and Mercury is projected to be in the low 16 percent range by the end of 2006, and the automaker does not expect full year profitability for its North American operations before 2009.

In a media/analyst Q & A session following Ford's announcement this morning, Ford President of the Americas Mark Fields said the reductions "are mainly coming in the fleet area. Our dealers are in a pretty good position to get through this period." He added that Ford will continue to seek voluntary reductions in dealerships in larger metro areas where it makes sense.

Responding to reports the automaker is looking to shed its British luxury brand Jaguar, Mark Shultz, head of Ford's international brands, quipped, "Jaguar is not for sale and we'll let you know if that changes."

Schultz added; however, that the automaker is examining the Jaguar brand, but that both Jaguar and Land Rover had pretty good product lineups.

Bill Ford also said the automaker does not plan on going private as several media outlets had reported earlier this month.