Amid reports that his job may be in jeopardy,Motor Co. President and Chief Executive Officer Jacques Nasser reveals he will unveil within 60 days a restructuring plan to address the market's continuing sluggishness.
Mr. Nasser tells The Wall Street Journal his plan could include plant closures as the No.2 automaker struggles with increased competition from Asia and Europe in addition to fallout from the Firestone tire recalls.
's intensified restructuring won't affect just North America. Mr. Nasser says there will be significant retrenching in Latin America, while further cost-cutting is necessary in Europe and Asia.
As a precursor to a new round of streamlining — and in acknowledgement of Ford's falling sales — the automaker confirms it will not pay bonuses to its top 6,000 executives. Last year, bonuses paid to Ford executives around the world totaled more than $440 million.
This comes just two weeks after Ford says it will reduce its white-collar workforce by 5,000, mostly through retirements.
Capping a difficult summer at Ford was a 10-day shutdown at its Wixom, MI, Assembly Plant that hampered Ford car sales, says company sales analyst George Pipas. Inventories were drained when production was halted after a cooling fan defect was found to cause engine overheating. The flaw affected cars equipped with 3.9L V-8s — Thunderbird and some Lincoln LS models.
There are signs that the worst may be yet to come. For years, Ford benefited from a strong financial position. But it was recently revealed that Ford's cash reserves have declined to $4.1 billion from $14.7 billion. And there is speculation this figure will fall below $1 billion by December. Plus, Ford appears committed to spending $375 million to expand its truck assembly plant in Norfolk, VA. Construction began in April and equipment should be in place by June.