Ford said its plan calls for "an investment of approximately $14 billion in the U.S. on advanced technologies and products to improve fuel-efficiency during the next seven years.
"Next month at the North American International Auto Show in Detroit, Ford will discuss in detail the company's accelerated vehicle electrification plan, which includes bringing to market by 2012 a family of hybrids, plug-in hybrids and battery electric vehicles," it said.
Ford CEO Alan Mulally and a small contingent were also expected to leave Dearborn on Tuesday in a Ford Escape Hybrid to drive to congressional hearings in Washington, D.C. this week, Ford spokesman Mike Moran told Inside Line. "It makes sense to drive it down to showcase our vehicles," Moran said. "It was his [Mulally's] idea."
Mulally's decision to drive comes after CEOs of the Big Three were hammered by critics for traveling in corporate luxury jets to earlier hearings in Washington. Ford noted in its Tuesday statement that it will "sell its corporate aircraft as part of its overall cash improvement plan."
Mulally also has agreed to cut his annual salary to $1 to win congressional support of the federal aid plan for Detroit. In a statement, Ford said Mulally's $1 salary is "a sign of his confidence in the company's transformation plan and future."
Ford also said it is canceling all bonuses to be paid in 2009 for all management employees worldwide and forgoing bonuses for all employees in North America. It is also reducing its U.S. dealers. "By year end, Ford estimates it will have 3,790 U.S. dealers, a reduction of 606 dealers overall — or 14 percent from year-end 2005," it said.
"The thing to note in our statement is that we have liquidity until 2009," Moran said. "We're not seeking direct loans. We want access to loans because the capital markets are frozen."
Ford said in the statement that it "expects both its overall and its North American automotive business pretax results to be break-even or profitable in 2011, excluding any special items."
Inside Line says: Ford — perhaps the healthiest of the Big Three — takes some dramatic steps to convince lawmakers of the need for help for Detroit. — Anita Lienert, Correspondent
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