(Reuters) - Ford Motor Co on Tuesday submitted an extensive restructuring plan demanded by Congress as a condition for supporting a $25 billion rescue package for Ford and the other two U.S.-based automakers.
Following are the details of Ford’s latest business plan, in which the automaker outlines steps to return to profitability in 2011.
* Ford expects both its overall and North American auto business pretax results to be break-even or profitable in 2011.
* Seeking up to $9 billion in bridge financing, but says it hopes to complete turnaround without accessing the loan should Congress agree to make the funds available.
* Does not expect a liquidity crisis in 2009, barring a bankruptcy by one of its domestic competitors or a more severe economic downturn.
* Ford’s financial outlook based on assumptions that U.S. auto sales will total 12.5 million units in 2009 and 14.5 million units in 2010. Sales are expected to improve to 15.5 million units in 2011.
* Ford’s plan calls for an investment of about $14 billion in the United States over the next seven years on advanced technologies and products to improve fuel efficiency.
* Ford hopes to receive $5 billion in direct loans by 2011 from the U.S. Department of Energy to support Ford’s investment in advanced technologies and products.
* Chief Executive Alan Mulally would work for a salary of $1 a year if Ford needed to access government funds.
* Company to sell its five corporate aircraft.
* Ford canceling all bonuses to be paid in 2009 for all management employees worldwide and bonuses for all employees in North America. The company also would not pay merit increases for North American salaried employees in 2009.
* Ford is in discussions with the United Auto Workers with the objective to further reduce its cost structure and eliminate the remaining labor cost gap that exists between Ford and foreign automakers.
* Aims to reduce its dealer and supplier base. By year-end, Ford estimates it will have 3,790 U.S. dealers, down 606 dealers from the end of 2005. Ford also plans to reduce the number of suppliers eligible for major sourcing to 750, down from 1,600 today.
* Ford plans to improve the fuel economy of its fleet an average of 14 percent for 2009 models, 26 percent for 2012 models and 36 percent for 2015 models -- compared with the fuel economy of its 2005 fleet.
* Ford to launch a family of hybrids, plug-in hybrids and battery electric vehicles by 2012. This includes a full battery electric van-type vehicle for commercial fleet use in 2010 and a electric sedan in 2011.
Reporting by Soyoung Kim and Poornima Gupta, editing by Gerald E. McCormick