Ford Safest Of Big Three
As Detroit's automakers make another request fo over £15 billion ($25 billion) the CEO of U.S. division of Ford Motor Co. Alan Mulally has stated he would work for a year for $1 if the automaker has to take a slice of government loan money, adding though the company will seek money from the government they would in most probability not need to use any..
The troubled auto makers are representing a bid for $25 billion in funding, to the U.S. Congress around a plan to restructure their ailing companies and provide assurances that the funding will help them survive and move out of their current decline.
Ford has also said it would cancel all management employees' 2009 bonuses and will not pay any merit increases for its North American salaried employees next year.
Some members of Congress have urged the Big Three executives to take major pay cuts as part of the deal. Chrysler Chief Executive Robert Nardelli said he would work for $1 a year, and a similar commitment is expected from GM CEO Rick Wagoner.
Mulally told the press that Ford will emphasise its cost cutting plans with the United Auto Workers union and would furnish Congress with full details of these plans. The company will also fast track palns to produce electric cars. Ford's plans call for an investment of up to $14 billion to improve fuel efficiency over the next seven years.
Fords CEO said the company will seek $9 billion in government loans but may not need the aid. Ford has said it has enough cash to make it through 2009 without assistance. He is also expected to tell Congress Ford plans to return to a pretax profit or break even in 2011.
General Motors Corp., Ford, and Chrysler LLC would refinance their companies' debt, cut executive pay, seek concessions from workers and find other ways of reviving their staggering companies.
U.S. automakers are struggling to stay afloat heading into 2009 under the weight of an economic meltdown, the worst auto sales in decades and a tight credit market. General Motors, Ford and Chrysler went through nearly $18 billion in cash reserves during the last quarter, and GM and Chrysler have said they could collapse in weeks.
It is hoped that these additional measures will convince a skeptical Congress that they were worthy of $25 billion in loans.
All three companies are filing separate plans. Congressional hearings are planned for Thursday and Friday.