Ford unveils reorganization, expects profit

Ford said the plan calls for cost savings with unionized workers and an investment of US$14 billion in new technologies in the coming years.

The struggling Detroit giant also said that it would sell its five corporate jets, and if it accesses congressional aid, chief executive Alan Mulally would work for a salary of one dollar a year “as a sign of his confidence in the company’s transformation plan and future.” The plan comes as the Detroit automakers request a total of US$25 billion to avert a collapse of the sector, which could send shockwaves through a fragile economy.

“Ford is asking for access to up to US$9 billion in bridge financing, but reiterated that it hopes to complete its transformation without accessing the loan should Congress agree to make the funds available,” the number-two automaker said in a statement ahead of a congressional hearing.

Ford had said Monday it was looking at strategic options for its Sweden based subsidiary Volvo Car, including the sale of the premium car manufacturer.

Additional savings could come from a reduction in the Ford dealer network. The company said that by the end of the year it will have 3,790 U.S. dealers, a reduction of 14 percent from the end of 2005.

Ford said it was “presently engaged 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 the (foreign automaker) transplants.”

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