By Joe Benton
ConsumerAffairs.com
September 15, 2006
As Ford Motor Corp. embarks on its third attempt since 2002 to restructure and become profitable, the automaker is promising consumers new products delivered to the showroom more quickly.
"Seventy percent of Ford, Lincoln and Mercury products by volume will be new or significantly upgraded between now and the end of 2008," according to Ford president for the Americas Mark Fields. "An all-new Ford full-size crossover will go on sale in 2008."
In the effort to build a product-driven company, Ford does not intend to back away from the truck market. The next-generation F150, the best-selling vehicle in the U.S., will be out in 2008. Ford says the pickup will be an all-new F-150 and will be available following the launch of a new Super Duty truck in early 2007.
"As a sign of just how serious we are about truck leadership, we literally stopped development for two months earlier this year," Fields said. "And we took a look at every element of the product to ensure we remain America's unquestioned truck leader."
While trying to maintain its grip on the truck market, the company promises to focus on fuel-efficient small cars based on compact and subcompact platforms with the work on those products intensifying through 2008.
Ford will also launch an all-new full-sized crossover, based on the Ford Fairlane crossover, in 2008.
"With bold American design, three rows of seating and about 23 miles to the gallon, we believe this all-new vehicle can redefine the people mover for the 21st century,"
Ford is also planning new Mustang derivatives for each new model year.
Company CEO Bill Ford blamed the latest round of restructuring on high material costs and rapid shifts in consumer demand away from profitable SUVs and other trucks to more fuel-efficient cars and crossovers.
Ford executives expect the new restructuring plan will reduce annual operating costs by $5 billion.
As part of the cutbacks, the company will suspend payment of its quarterly dividend to save cash.
North American manufacturing capacity will be cut to 3.6 million vehicles by the end of 2008. The manufacturing volume will be down 26 percent compared to 2005.
Ford will close 16 manufacturing plants by 2012, reduce the salaried work force by 14,000 employees and offer job buy-out packages to all 75,000 union workers in the company in an effort to cut 30,000 hourly jobs.
