Posted tagged ‘Ford Motor’

Ford Says CEO Will Work for $1

December 2, 2008

And he will be giving me the rest of his salary 🙂 I can dream, right?

Ford Motor Co. CEO Alan Mulally said he’ll work for $1 per year if the automaker has to take any government loan money.

From the Associated Press:

The plan Ford is presenting to Congress this week also says it will cancel all management employees’ 2009 bonuses and will not pay any merit increases for its North American salaried employees next year.

Other cost-cutting actions include a plan to sell Ford’s five corporate aircraft, the company said.

Mulally said in an interview with The Associated Press on Tuesday that Ford will emphasize its cost cutting efforts with the United Auto Workers union and will give much more detail to Congress than it did when lawmakers grilled the automakers’ CEOs earlier this month.

The company said it also will accelerate plans to roll out electric vehicles as part of the plan it will present to Congress this week. The vehicles will come out starting in 2010 and include the Transit Connect small van and a car the size of the Ford Focus compact.

Mulally says Ford will seek $9 billion in government loans but may not need them. The Dearborn-based has said it has enough cash to make it through 2009 without assistance.

All three Detroit automakers are scheduled to appear before congressional committees Thursday and Friday to seek a total of $25 billion in government loans. Chrysler LLC and General Motors Corp. have said they are perilously low on cash and need the government loans to survive the recession and the worst auto sales environment in 25 years.

Mulally also said he will encourage other automakers to join forces to develop new battery technologies in the U.S. for future electric cars.

An electric car and profitability are hallmarks of a plan Ford submitted to Congress Tuesday.

Ford’s plans call for an investment of up to $14 billion to improve fuel efficiency over the next seven years. The company said would improve the overall efficiency of its fleet by an average of 14 percent in 2009.

The company’s plans to achieve profitability or break even by 2011 are based on industrywide sales estimates of 12.5 million units in 2009, 14.5 million in 2010 and 15.5 million in 2011.

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Ford Motor Company Considers Selling Volvo

December 1, 2008

Ford Motor Company is considering selling Volvo Car Corp. as the struggling U.S. automaker seeks to raise cash and weather a global automotive sales crisis.

From the Associated Press:

Ford said Monday it expects its strategic review of the Swedish luxury automaker will take several months. The move is one of several actions Ford is taking to strengthen its balance sheet amid what it called “severe economic instability worldwide.”

“Given the unprecedented external challenges facing Ford and the entire industry, it is prudent for Ford to evaluate options for Volvo as we implement our One Ford plan,” said company president and CEO Alan Mulally in written statement, referring to a plan the standardize the company globally.

Ford officials would not speculate on how a potential sale would affect the companies. Spinning off Volvo into a separate may be a possibility, as both companies have already taken steps to allow Volvo to operate on a more standalone basis. That effort began in 2007, after a previous strategic review of Volvo.

Auto Industry CEOs Flew Private Jets to Ask for Bailout Money

November 20, 2008

Lawmakers are lashing out at the CEOs of General Motors, Ford and Chrysler today for flying private jets to Washington to request taxpayer bailout money. Seriously. Do executives even think before they do things? It’s like calling the kettle black. And you think you deserve the money?

From CNN:

“There is a delicious irony in seeing private luxury jets flying into Washington, D.C., and people coming off of them with tin cups in their hand, saying that they’re going to be trimming down and streamlining their businesses,” Rep. Gary Ackerman, D-New York, told the chief executive officers of Ford, Chrysler and General Motors at a hearing of the House Financial Services Committee.

“It’s almost like seeing a guy show up at the soup kitchen in high hat and tuxedo. It kind of makes you a little bit suspicious.”

He added, “couldn’t you all have downgraded to first class or jet-pooled or something to get here? It would have at least sent a message that you do get it.”

The executives — Alan Mulally of Ford, Robert Nardelli of Chrysler and Richard Wagoner of GM — were seeking support for a $25 billion loan package. Later Wednesday, Senate Majority Leader Harry Reid reversed plans to hold a test vote on the measure.

An aide told CNN that Reid decided to cancel the test vote when it became clear the measure would fall well short of the 60 votes needed. Reid did, however, make a procedural move that could allow a vote on a compromise, which several senators from auto-producing states were feverishly trying to craft.

At Wednesday’s hearing, Rep. Brad Sherman, D-California, pressed the private-jet issue, asking the three CEOs to “raise their hand if they flew here commercial.”

“Let the record show, no hands went up,” Sherman said. “Second, I’m going to ask you to raise your hand if you are planning to sell your jet in place now and fly back commercial. Let the record show, no hands went up.”

The executives did not specifically respond to those remarks. In their testimony, they said they are streamlining business operations in general.

Auto Makers Leave Congress Empty-Handed

November 20, 2008

Lawmakers deadlocked on a plan to bail out the Big Three automakers, leaving General Motors facing the prospect it could run out of cash before a new Congress can come to the rescue next year.

From Bloomberg:

Democratic congressional leaders disagreed with Republicans and President George W. Bush’s administration over how to provide $25 billion in aid to GM, Ford Motor Co. and Chrysler LLC. Only two days remain in a lame-duck session for lawmakers to resurrect a compromise, though Senate Majority Leader Harry Reid said today Congress might return in December to complete its work.

“We are in a situation where we don’t know procedurally what we are going to be able to accomplish today,” the Nevada Democrat said on the Senate floor.

Reid earlier suggested the situation was dire and refused to set aside time today to debate a compromise proposed by Senator Kit Bond, a Missouri Republican. Reid said Bond’s plan hasn’t been put in writing and the House of Representatives is about to adjourn.

Bond and fellow Republican George Voinovich of Ohio insisted they weren’t giving up on their proposal to speed up and broaden access to $25 billion already approved for fuel-efficient vehicle development that was a compromise.

Barack Obama Speaks to the State of the Economy

November 8, 2008

In his first press conference following Tuesday’s Presidential election, President-Elect Barack Obama addressed the struggling economy this afternoon.

The text of his statement can be found below, courtesy of MSNBC.

This morning, we woke to more sobering news about the state of our economy. The 240,000 jobs lost in October marks the 10th consecutive month that our economy has shed jobs. In total, we’ve lost nearly 1.2 million jobs this year, and more than 10 million Americans are now unemployed. Tens of millions of families are struggling to figure out how to pay the bills and stay in their homes. Their stories are an urgent reminder that we are facing the greatest economic challenge of our lifetime, and we must act swiftly to resolve them.

The United States has only one government and one President, and until January 20th of next year, that government is the current Administration. I have spoken to President Bush, and I appreciate his commitment to ensuring that his economic policy team keeps us fully informed as developments unfold.

Immediately after I become President, I will confront this economic crisis head-on by taking all necessary steps to ease the credit crisis, help hardworking families, and restore growth and prosperity.

This morning, I met with members of my Transition Economic Advisory Board, who will help guide the work of my transition team in developing a strong set of policies to respond to this crisis. We discussed several of the most immediate challenges facing our economy and key priorities on which to focus on in the days and weeks ahead:

First, we need a rescue plan for the middle class that invests in immediate efforts to create jobs and provides relief to families that are watching their paychecks shrink and their life savings disappear. A particularly urgent priority is a further extension of unemployment insurance benefits for workers who cannot find work in the increasingly weak economy. A fiscal stimulus plan that will jump-start economic growth is long overdue – and we should get it done.

Second, we must address the spreading impact of the financial crisis on other sectors of our economy: small businesses that are struggling to meet their payrolls and finance their holiday inventories; and state and municipal governments facing devastating budget cuts and tax increases. We must also remember that the financial crisis is increasingly global and requires a global response.

The news coming out of the auto industry this week reminds us of the hardship it faces – hardship that goes far beyond individual auto companies to the countless suppliers, small businesses and communities throughout our nation who depend on a vibrant American auto industry. The auto industry is the backbone of American manufacturing and a critical part of our attempt to reduce our dependence on foreign oil. I would like to see the Administration do everything they can to accelerate the retooling assistance that Congress has already enacted. In addition, I have made it a high priority for my transition team to work on additional policy options to help the auto industry adjust, weather the financial crisis, and succeed in producing fuel-efficient cars here in the United States. I have asked my team to explore what we can do under current law and whether additional legislation will be needed for this purpose.

Third, we will review the implementation of this Administration’s financial program to ensure that our government’s efforts are achieving their central goal of stabilizing financial markets while protecting taxpayers, helping homeowners and not unduly rewarding the management of financial firms that are receiving government assistance. It is critical that the Treasury work closely with the FDIC, HUD and other government agencies to use the substantial authority they already have to help families avoid foreclosure and stay in their homes.

Finally, as we monitor and address these immediate economic challenges, we will be moving forward in laying out a set of policies that will grow our middle-class and strengthen our economy in the long-term. We cannot afford to wait on moving forward on the key priorities that I identified during the campaign, including clean energy, health care, education and tax relief for middle class families.

My transition team will be working on each of these priorities in the weeks ahead, and I intend to reconvene this Advisory Board to discuss the best ideas for responding to these immediate problems.

Let me close by saying that I do not underestimate the enormity of the task that lies ahead. We have taken some major actions to date, and we will need further actions during this transition and subsequent months. Some of those choices will be difficult, but America is a strong and resilient country. I know that we will succeed if we put aside partisanship and work together as one nation. And that is what I intend to do.