Ford Motor Co – Can this pre-historic company survive?

This 103 years old company recorded a whopping USD$12.7bio loss for 2006.

– slumping sales and huge restructuring costs

What is Alan Mulally, the president and CEO, and its management team trying to do?

Apparently they are executing a plan that will put the 103 years old company through a complete makeover costing USD$23.4bio. The makeover has started in 2006 and is expected to end in 2009. To pay for the bill all the way to year 2009, it has mortgaged its assets and borrowed the money.
  • To shrink its massive production capacities to match shrinking demand.
  • To change their product lines of trucks and petrol-guzzling SUVs to producing smaller, more fuel efficient vehicles.
  • To clear up its pension commitment to 38,000 employees.
  • To remove 14,000 white-collar managers.
Can they pull it off?
If not, another pre-historic dinosaur will disappear.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s