Today, we announced the fuel economy certification for the Fusion Hybrid which achieves 41 mpg in the city and 36 mpg on the highway. This is obviously good news and puts us well ahead of the competition.
I've included the press release below that we placed with USA Today and The Associated Press for stories that ran this morning, and throughout the next week you should start to see even more widespread coverage.
Be sure to share this good news with your employees.
All the best for the holiday!
Wednesday, December 24, 2008
Friday, December 19, 2008
IMMEDIATE RELEASE
FORD MOTOR COMPANY WELCOMES ACTION TO PROVIDE EMERGENCY FUNDING TO GM AND CHRYSLER
DEARBORN, Mich., Dec. 19, 2008 – Ford Motor Company said today that it welcomes action by the Administration to provide emergency funding for General Motors Corp. and Chrysler LLC.
“As we told Congress, Ford is in a different position. We do not face a near-term liquidity issue, and we are not seeking short-term financial assistance from the government,” Ford President and CEO Alan Mulally said. “But all of us at Ford appreciate the prudent step the Administration has taken to address the near-term liquidity issues of GM and Chrysler. The U.S. auto industry is highly interdependent, and a failure of one of our competitors would have a ripple effect that could jeopardize millions of jobs and further damage the already weakened U.S. economy.”
Ford recently submitted to Congress its comprehensive business plan, which details the company’s plan to return to pre-tax Automotive profitability by 2011. In the plan, Ford said the transformation of its North American automotive business will continue to accelerate through aggressive restructuring actions and the introduction of more high-quality, safe and fuel-efficient vehicles – including a broader range of hybrid-electric vehicles and the introduction of advanced plug-in hybrids and full electric vehicles.
“Ford has a comprehensive transformation plan that will ensure our future viability – as evidenced by our profitability in the first quarter of 2008,” Mulally said. “While we clearly still have much more work to do, I am more convinced than ever that we have the right plan that will create a viable Ford going forward and position us for profitable growth.”
Ford is asking for access to a line of credit of up to $9 billion in bridge financing, but reiterated that it hopes to complete its transformation without accessing a government loan.
“For Ford, a line of credit would serve only as a critical backstop or safeguard against worsening conditions, as we drive transformational change in our company,” Mulally said.
Ford reiterated that it is continuing aggressive actions to reduce costs and improve Automotive gross cash to fund its product-led transformation plan, despite the continued weakness in the global automotive market and economic environment. Ford said it is more committed than ever to deliver more of the safe, affordable, high-quality, fuel-efficient vehicles that consumers want and value. The company’s plans include:
· Delivering best-in-class or among the best fuel economy with every new vehicle introduced.
· Investing approximately $14 billion in the U.S. on advanced technologies and products to improve fuel efficiency during the next seven years.
· Introducing industry-leading, fuel-saving EcoBoost engines on today’s vehicles for up to 20 percent better fuel economy and up to 15 percent fewer CO2 emissions versus larger-displacement engines.
· Bringing to market by 2012 a family of hybrids, plug-in hybrids and battery electric vehicles.
· Upgrading the Ford, Lincoln, Mercury lineup in North America almost completely by the end of 2010.
· Bringing six European small vehicles from global B-car and C-car platforms to be built in Ford’s North America plants.
· Retooling three North American truck plants to produce small, fuel efficient vehicles.
· Building on vehicle quality that is now on par with Honda and Toyota – and that consistently is being recognized by important third-parties like J.D. Power and Associates’ Initial Quality Study – driven by Ford’s disciplined and standardized processes for every product.
· Building on vehicle safety leadership – with the most U.S. government 5-star safety ratings of any auto company and recently moving past Honda for the industry’s most IIHS “Top Safety Picks” – plus new smart safety features, such as the industry-first MyKey technology that limits top speed and audio volume for teens and the first forward crash-avoidance system for mainstream vehicles.
· Supporting Ford’s products with a lean, flexible global manufacturing system on par with leading Japanese and European facilities.
To read Ford’s submission to the U.S. Congress and for more information about Ford’s plan, please visit www.thefordstory.com.
# # #
Fact Sheet: Financing Assistance to Facilitate the Restructuring of Automobile Manufacturers to Attain Financial Viability
Purpose: The terms and conditions of the financing provided by the Treasury Department will facilitate restructuring of our domestic auto industry, prevent disorderly bankruptcies during a time of economic difficulty, and protect the taxpayer by ensuring that only financially viable firms receive financing.
Amount: Auto manufacturers will be provided with $13.4 B in short-term financing from the TARP, with an additional $4 B available in February, contingent upon drawing down the second tranche of TARP funds.
Viability Requirement: The firms must use these funds to become financially viable. Taxpayers will not be asked to provide financing for firms that do not become viable. If the firms have not attained viability by March 31, 2009, the loan will be called and all funds returned to the Treasury.
Definition of Viability: A firm will only be deemed viable if it has a positive net present value, taking into account all current and future costs, and can fully repay the government loan.
Binding Terms and Conditions: The binding terms and conditions established by the Treasury will mirror those that were voted favorably by a majority of both Houses of Congress, including:
· Firms must provide warrants for non-voting stock.
· Firms must accept limits on executive compensation and eliminate perks such as corporate jets.
· Debt owed to the government would be senior to other debts, to the extent permitted by law.
· Firms must allow the government to examine their books and records.
· Firms must report and the government has the power to block any large transactions (> $100 M).
· Firms must comply with applicable Federal fuel efficiency and emissions requirements.
· Firms must not issue new dividends while they owe government debt.
Targets: The terms and conditions established by Treasury will include additional targets that were the subject of Congressional negotiations but did not come to a vote, including:
· Reduce debts by 2/3 via a debt for equity exchange.
· Make one-half of VEBA payments in the form of stock.
· Eliminate the jobs bank.
· Work rules that are competitive with transplant auto manufacturers by 12/31/09.
· Wages that are competitive with those of transplant auto manufacturers by 12/31/09.
These terms and conditions would be non-binding in the sense that negotiations can deviate from the quantitative targets above, providing that the firm reports the reasons for these deviations and makes the business case to achieve long-term viability in spite of the deviations.
In addition, the firm will be required to conclude new agreements with its other major stakeholders, including dealers and suppliers, by March 31, 2009.
DEARBORN, Mich., Dec. 19, 2008 – Ford Motor Company said today that it welcomes action by the Administration to provide emergency funding for General Motors Corp. and Chrysler LLC.
“As we told Congress, Ford is in a different position. We do not face a near-term liquidity issue, and we are not seeking short-term financial assistance from the government,” Ford President and CEO Alan Mulally said. “But all of us at Ford appreciate the prudent step the Administration has taken to address the near-term liquidity issues of GM and Chrysler. The U.S. auto industry is highly interdependent, and a failure of one of our competitors would have a ripple effect that could jeopardize millions of jobs and further damage the already weakened U.S. economy.”
Ford recently submitted to Congress its comprehensive business plan, which details the company’s plan to return to pre-tax Automotive profitability by 2011. In the plan, Ford said the transformation of its North American automotive business will continue to accelerate through aggressive restructuring actions and the introduction of more high-quality, safe and fuel-efficient vehicles – including a broader range of hybrid-electric vehicles and the introduction of advanced plug-in hybrids and full electric vehicles.
“Ford has a comprehensive transformation plan that will ensure our future viability – as evidenced by our profitability in the first quarter of 2008,” Mulally said. “While we clearly still have much more work to do, I am more convinced than ever that we have the right plan that will create a viable Ford going forward and position us for profitable growth.”
Ford is asking for access to a line of credit of up to $9 billion in bridge financing, but reiterated that it hopes to complete its transformation without accessing a government loan.
“For Ford, a line of credit would serve only as a critical backstop or safeguard against worsening conditions, as we drive transformational change in our company,” Mulally said.
Ford reiterated that it is continuing aggressive actions to reduce costs and improve Automotive gross cash to fund its product-led transformation plan, despite the continued weakness in the global automotive market and economic environment. Ford said it is more committed than ever to deliver more of the safe, affordable, high-quality, fuel-efficient vehicles that consumers want and value. The company’s plans include:
· Delivering best-in-class or among the best fuel economy with every new vehicle introduced.
· Investing approximately $14 billion in the U.S. on advanced technologies and products to improve fuel efficiency during the next seven years.
· Introducing industry-leading, fuel-saving EcoBoost engines on today’s vehicles for up to 20 percent better fuel economy and up to 15 percent fewer CO2 emissions versus larger-displacement engines.
· Bringing to market by 2012 a family of hybrids, plug-in hybrids and battery electric vehicles.
· Upgrading the Ford, Lincoln, Mercury lineup in North America almost completely by the end of 2010.
· Bringing six European small vehicles from global B-car and C-car platforms to be built in Ford’s North America plants.
· Retooling three North American truck plants to produce small, fuel efficient vehicles.
· Building on vehicle quality that is now on par with Honda and Toyota – and that consistently is being recognized by important third-parties like J.D. Power and Associates’ Initial Quality Study – driven by Ford’s disciplined and standardized processes for every product.
· Building on vehicle safety leadership – with the most U.S. government 5-star safety ratings of any auto company and recently moving past Honda for the industry’s most IIHS “Top Safety Picks” – plus new smart safety features, such as the industry-first MyKey technology that limits top speed and audio volume for teens and the first forward crash-avoidance system for mainstream vehicles.
· Supporting Ford’s products with a lean, flexible global manufacturing system on par with leading Japanese and European facilities.
To read Ford’s submission to the U.S. Congress and for more information about Ford’s plan, please visit www.thefordstory.com.
# # #
Fact Sheet: Financing Assistance to Facilitate the Restructuring of Automobile Manufacturers to Attain Financial Viability
Purpose: The terms and conditions of the financing provided by the Treasury Department will facilitate restructuring of our domestic auto industry, prevent disorderly bankruptcies during a time of economic difficulty, and protect the taxpayer by ensuring that only financially viable firms receive financing.
Amount: Auto manufacturers will be provided with $13.4 B in short-term financing from the TARP, with an additional $4 B available in February, contingent upon drawing down the second tranche of TARP funds.
Viability Requirement: The firms must use these funds to become financially viable. Taxpayers will not be asked to provide financing for firms that do not become viable. If the firms have not attained viability by March 31, 2009, the loan will be called and all funds returned to the Treasury.
Definition of Viability: A firm will only be deemed viable if it has a positive net present value, taking into account all current and future costs, and can fully repay the government loan.
Binding Terms and Conditions: The binding terms and conditions established by the Treasury will mirror those that were voted favorably by a majority of both Houses of Congress, including:
· Firms must provide warrants for non-voting stock.
· Firms must accept limits on executive compensation and eliminate perks such as corporate jets.
· Debt owed to the government would be senior to other debts, to the extent permitted by law.
· Firms must allow the government to examine their books and records.
· Firms must report and the government has the power to block any large transactions (> $100 M).
· Firms must comply with applicable Federal fuel efficiency and emissions requirements.
· Firms must not issue new dividends while they owe government debt.
Targets: The terms and conditions established by Treasury will include additional targets that were the subject of Congressional negotiations but did not come to a vote, including:
· Reduce debts by 2/3 via a debt for equity exchange.
· Make one-half of VEBA payments in the form of stock.
· Eliminate the jobs bank.
· Work rules that are competitive with transplant auto manufacturers by 12/31/09.
· Wages that are competitive with those of transplant auto manufacturers by 12/31/09.
These terms and conditions would be non-binding in the sense that negotiations can deviate from the quantitative targets above, providing that the firm reports the reasons for these deviations and makes the business case to achieve long-term viability in spite of the deviations.
In addition, the firm will be required to conclude new agreements with its other major stakeholders, including dealers and suppliers, by March 31, 2009.
Wednesday, December 10, 2008
Good News Story
Ford execs say company differs from US competition
Wednesday December 10, 12:48 am ET
By Kimberly S. Johnson and Tom Krisher, AP Auto Writers
Ford executives say shunning loans makes the company different from Detroit competitors
DEARBORN, Mich. (AP) -- By shunning government loans, Ford Motor Co.'s top executives say they hope to buff up the automaker's image and set it apart from its cash-starved Detroit competitors, General Motors Corp. and Chrysler LLC.
ADVERTISEMENT
GM and Chrysler are in desperate need of government money and may not last until the end of the year without it. But Ford set up $23.5 billion worth of credit back in 2006, and both Chief Executive Alan Mulally and Executive Chairman Bill Ford Jr. told The Associated Press Tuesday they are confident that the borrowing, coupled with restructuring and new product plans, will get them through the recession without relying on the government.
Ford even said the century-old company that bears his family's name might be able to use the independence from loans to its advantage.
"I think if they see Ford as a company trying to pull itself up by its own bootstraps, and making it on its own and pulling the right levers, I think that could be a positive for us," Ford said.
Mulally said Ford has completed much of the restructuring that Congress is demanding of the other two, slimming down its brands by selling Jaguar, Land Rover and Aston Martin and studying the sale of Sweden's Volvo.
Ford, he said, has cut its factory capacity to match demand, and it anticipates no further cuts will be necessary as long as the U.S. auto market doesn't worsen considerably. The company has announced the closure of 17 factories and eliminated 50,000 jobs since 2005, many through buyout and early retirement offers.
The interviews came as weary Democratic congressional leaders pushed to clear the final obstacles to a $15 billion bailout of Chrysler and GM Tuesday night, but the rescue plan faced new snags as Republicans raised deep concerns.
Among the requirements in the Democrats' proposed legislation is the appointment of a "car czar" to oversee Chrysler and GM with authority to yank the loans if the companies don't make substantial progress toward restructuring.
Both companies are likely to seek further concessions from the United Auto Workers and their creditors in order to justify the government money and prove themselves viable.
But Mulally said Tuesday he would expect the same concessions from the union even though Ford wouldn't be under government supervision.
"The UAW supports the entire industry. They represent employees at all three companies. I can't imagine being disadvantaged on that," Mulally said. "I would think whatever's done on that we would continue to do together because they support all of us."
Mulally appeared before Congress last week with the CEOs of GM and Chrysler, and said he did so to support the other automakers and to line up government funds just in case the economy worsened and Ford might need government money in the future. If one or both of the others go into bankruptcy, it could drag down parts suppliers and force Ford into the same situation, Mulally said.
He also said that if Ford needed to take the loans and if Congress required him to step down for Ford to get the money, he would comply with the conditions.
But Ford, the executive chairman, said he would be against Mulally leaving, joking that he might rob a bank to keep the executive he hired away from aviation giant Boeing Co. in 2006.
Mulally said that two years ago Ford took its plan -- similar to the one it submitted to Congress last week -- to 40 banks in an effort to get financing to unify its production system and for research and development. It originally estimated a need for $17 billion, but raised additional funds just in case.
"None of us thought it would go as deep as it was going to go and we would have to use it all," Mulally said. "To finance this transformation of Ford on the production system to match demand and get back to profitability, and finance our accelerated product development. That's what led to doing it and doing it at that time."
Ford said the company is trying to take leadership in fuel economy with direct-injection turbocharged engines, new hybrid gas-electric powertrains and eventually electric vehicles. Competitors, including Chrysler, GM, Toyota Motor Corp. and Honda Motor Co., have or are working on, similar technologies.
"Even when we got into tough times, we kept our R&D spending alive, and it was something that I was personally involved in to make sure we spent in the new technologies that will get us to real modernization," he said.
He said it looks like the country is moving toward electric vehicles as the next generation of transportation, and he called on the government to come up with an energy policy to pick one technology and start building the infrastructure to make it work.
"I don't think we'll ever get the infrastructure built that we need if market forces alone are working. I think that our government has to provide some direction," he said.
Ford also said he'd like to see the government keep gas prices stable with taxes or a floor on crude oil prices so automakers can plan their models better.
Gasoline prices peaked at more than $4 per gallon during the summer but now are well below $2 per gallon in many areas of the country.
"We plan our vehicles three, four, five years in advance," he said. "It makes life very difficult if the market gyrates wildly over the course of several months, and that's exactly what we've seen happen."
Wednesday December 10, 12:48 am ET
By Kimberly S. Johnson and Tom Krisher, AP Auto Writers
Ford executives say shunning loans makes the company different from Detroit competitors
DEARBORN, Mich. (AP) -- By shunning government loans, Ford Motor Co.'s top executives say they hope to buff up the automaker's image and set it apart from its cash-starved Detroit competitors, General Motors Corp. and Chrysler LLC.
ADVERTISEMENT
GM and Chrysler are in desperate need of government money and may not last until the end of the year without it. But Ford set up $23.5 billion worth of credit back in 2006, and both Chief Executive Alan Mulally and Executive Chairman Bill Ford Jr. told The Associated Press Tuesday they are confident that the borrowing, coupled with restructuring and new product plans, will get them through the recession without relying on the government.
Ford even said the century-old company that bears his family's name might be able to use the independence from loans to its advantage.
"I think if they see Ford as a company trying to pull itself up by its own bootstraps, and making it on its own and pulling the right levers, I think that could be a positive for us," Ford said.
Mulally said Ford has completed much of the restructuring that Congress is demanding of the other two, slimming down its brands by selling Jaguar, Land Rover and Aston Martin and studying the sale of Sweden's Volvo.
Ford, he said, has cut its factory capacity to match demand, and it anticipates no further cuts will be necessary as long as the U.S. auto market doesn't worsen considerably. The company has announced the closure of 17 factories and eliminated 50,000 jobs since 2005, many through buyout and early retirement offers.
The interviews came as weary Democratic congressional leaders pushed to clear the final obstacles to a $15 billion bailout of Chrysler and GM Tuesday night, but the rescue plan faced new snags as Republicans raised deep concerns.
Among the requirements in the Democrats' proposed legislation is the appointment of a "car czar" to oversee Chrysler and GM with authority to yank the loans if the companies don't make substantial progress toward restructuring.
Both companies are likely to seek further concessions from the United Auto Workers and their creditors in order to justify the government money and prove themselves viable.
But Mulally said Tuesday he would expect the same concessions from the union even though Ford wouldn't be under government supervision.
"The UAW supports the entire industry. They represent employees at all three companies. I can't imagine being disadvantaged on that," Mulally said. "I would think whatever's done on that we would continue to do together because they support all of us."
Mulally appeared before Congress last week with the CEOs of GM and Chrysler, and said he did so to support the other automakers and to line up government funds just in case the economy worsened and Ford might need government money in the future. If one or both of the others go into bankruptcy, it could drag down parts suppliers and force Ford into the same situation, Mulally said.
He also said that if Ford needed to take the loans and if Congress required him to step down for Ford to get the money, he would comply with the conditions.
But Ford, the executive chairman, said he would be against Mulally leaving, joking that he might rob a bank to keep the executive he hired away from aviation giant Boeing Co. in 2006.
Mulally said that two years ago Ford took its plan -- similar to the one it submitted to Congress last week -- to 40 banks in an effort to get financing to unify its production system and for research and development. It originally estimated a need for $17 billion, but raised additional funds just in case.
"None of us thought it would go as deep as it was going to go and we would have to use it all," Mulally said. "To finance this transformation of Ford on the production system to match demand and get back to profitability, and finance our accelerated product development. That's what led to doing it and doing it at that time."
Ford said the company is trying to take leadership in fuel economy with direct-injection turbocharged engines, new hybrid gas-electric powertrains and eventually electric vehicles. Competitors, including Chrysler, GM, Toyota Motor Corp. and Honda Motor Co., have or are working on, similar technologies.
"Even when we got into tough times, we kept our R&D spending alive, and it was something that I was personally involved in to make sure we spent in the new technologies that will get us to real modernization," he said.
He said it looks like the country is moving toward electric vehicles as the next generation of transportation, and he called on the government to come up with an energy policy to pick one technology and start building the infrastructure to make it work.
"I don't think we'll ever get the infrastructure built that we need if market forces alone are working. I think that our government has to provide some direction," he said.
Ford also said he'd like to see the government keep gas prices stable with taxes or a floor on crude oil prices so automakers can plan their models better.
Gasoline prices peaked at more than $4 per gallon during the summer but now are well below $2 per gallon in many areas of the country.
"We plan our vehicles three, four, five years in advance," he said. "It makes life very difficult if the market gyrates wildly over the course of several months, and that's exactly what we've seen happen."
Wednesday, December 3, 2008
www.TheFordStory.com
The Plan
Our plan is actually quite simple: to build the best vehicles on the road today and make them affordable for millions.
When do we plan to do this?
It’s already underway.
During the past three years, we have switched to a lineup that includes many new cars and crossovers. They’ve been proven to match the quality of the imports, along with better safety, better fuel mileage, and innovative technology. Want proof?
Our Progress
We get it. We need a new way of doing business. You’ll be glad to know Ford has been making great progress…we’re sure you will agree.
Ford Motor Company, Honda Motors and Toyota Motors quality ratings are in a dead heat.1
Our cars and trucks deliver fuel economy comparable to that of all other manufacturers including the Japanese.
No other brand or company in the U.S. has received more government 5-star crash test ratings than Ford.2
Our factories and the vehicles they produce have pioneered environmentally-friendly techniques.
The economic situation has had a profound impact on our industry. And don’t just write it off as something that will only affect people you don’t know in Detroit. We’re proud to be a part of your community. We want you to be equally proud to have us there.
Ford Economic Footprint Facts
ShareThisEmail your friends Tell your Congressional Rep. Find more things to share
Press release regarding Ford's Plan
1Based on cumulative survey data of 2008 MY Ford and competitive owners at three months of service in three surveys conducted 9/07–5/08.
2Based on both NHTSA 5-star crash test ratings and, with optional electronic stability control, IIHS Top Safety Pick. Star ratings are part of the U.S. Department. of Transportation’s Safercar.gov program.
Privacy Policy California Privacy Policy © 2008 Ford Motor Company
Our plan is actually quite simple: to build the best vehicles on the road today and make them affordable for millions.
When do we plan to do this?
It’s already underway.
During the past three years, we have switched to a lineup that includes many new cars and crossovers. They’ve been proven to match the quality of the imports, along with better safety, better fuel mileage, and innovative technology. Want proof?
Our Progress
We get it. We need a new way of doing business. You’ll be glad to know Ford has been making great progress…we’re sure you will agree.
Ford Motor Company, Honda Motors and Toyota Motors quality ratings are in a dead heat.1
Our cars and trucks deliver fuel economy comparable to that of all other manufacturers including the Japanese.
No other brand or company in the U.S. has received more government 5-star crash test ratings than Ford.2
Our factories and the vehicles they produce have pioneered environmentally-friendly techniques.
The economic situation has had a profound impact on our industry. And don’t just write it off as something that will only affect people you don’t know in Detroit. We’re proud to be a part of your community. We want you to be equally proud to have us there.
Ford Economic Footprint Facts
ShareThisEmail your friends Tell your Congressional Rep. Find more things to share
Press release regarding Ford's Plan
1Based on cumulative survey data of 2008 MY Ford and competitive owners at three months of service in three surveys conducted 9/07–5/08.
2Based on both NHTSA 5-star crash test ratings and, with optional electronic stability control, IIHS Top Safety Pick. Star ratings are part of the U.S. Department. of Transportation’s Safercar.gov program.
Privacy Policy California Privacy Policy © 2008 Ford Motor Company
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