US:Bill Ford Jr. admits his automaker is in trouble - Ford Forums

Stacy94PGT · 09-04-2006, 06:18

Bill Ford Jr. admits his automaker is in trouble
Ford chairman and CEO tells Newsweek there is a plan to restore sales in North America.
Detroit News staff and wire reports

Ford Motor Co. Chairman and CEO Bill Ford Jr. said company executives "understand we're in trouble in North America" and have a plan to fix the company.

"We understand that it requires extraordinary action, and we are taking that," Ford told Newsweek in an interview posted on the magazine's Web site Sunday and on newsstands today.

"It's important people understand that we get it."

Ford plans to announce its third restructuring in five years later this month. The second-biggest U.S. automaker announced in January it would cut 30,000 jobs and close 14 plants in North America by 2012.

Ford has said this month's announcement is an acceleration of the January plan.

The interview with Newsweek mirrored comments Bill Ford made in an e-mail to employees Friday, which were first reported by The Detroit News.

"The business model that sustained us for decades is no longer sufficient to sustain profitability," he said in the employee e-mail.

The company has broadened restructuring beyond North America.

Last week, Ford put British-based Aston Martin on the sales block. The Sunday Times of London said possible buyers included a management group led by Aston Martin Chief Executive Ulrich Bez and a private equity firm headed by former Ford CEO Jacques Nasser, citing senior sources at Ford.

Bez declined to comment on a possible bid but told the newspaper that he expected to have a continuing role at the carmaker.

Ford also is debating the fate of its Jaguar and Land Rover luxury-vehicle subsidiaries. Land Rover became profitable in 2005 while Jaguar is losing money.

Bill Ford, great-grandson of company founder Henry Ford, became CEO in October 2001 and unveiled his first job-cutting plan in January 2002. Ford reported a $3.49 billion profit for 2004. Net income slid to $2 billion last year, as profits from car and truck loans made up for automotive losses. North America is the company's largest auto unit, where sales of profitable mid- and large-sized sport utility vehicles fell.

North American losses have continued in 2006 as fuel prices caused sales of F-Series pickup trucks to fall below company projections. Overall, the North American unit has been unprofitable for seven of the past eight quarters, and Ford posted a $1.44 billion net loss for the first half of 2006.

"But look, right now I'm focused on getting the North American operations back on track," Ford told Newsweek.

"That's where my energy and time is going. That's my passion."

Ford last month announced it is cutting North American production 21 percent in the fourth quarter. The reduction will affect 10 plants, including four that produce F-Series trucks.

Bill Ford also said he's willing to recruit people to fill jobs "regardless of the position." Asked by Newsweek if that meant "all the way up to your own job," Ford replied, "Absolutely."

Ford also told Newsweek that his role at Ford is "not important because I'll always be part of this company. In that regard, I'm not a traditional CEO."