Ford's Way Forward

Ford Motor Co. plans to reduce its salaried personnel costs in North America by an average of 10%, Wards has learned.

The sweeping move will cut the equivalent of about 4,000 positions as part of its restructuring plan, referred to as “Way Forward,” which will be announced in January (see story, p.30).

The involuntary cuts will involve the reduction of “salaried, agency and purchased services,” according to a memo sent to employees by Ford President of the Americas Mark Fields.

The move primarily will be completed by the end of the first quarter, according to the memo.

Ford Chairman and CEO Bill Ford said in October that his new management team was in place to make recommendations on restructuring cuts for his review by December.

The memo appears to be the first in what is expected to be a series of action plans. Fields describes it as a heads-up to the “Ford team about the steps we will take in the weeks and months ahead to return our North America business to profitability.”

Way Forward will focus on clarifying the auto maker's brands, strengthening the vehicle lineup and improving quality, costs, growth and profitability.

“The reality is that the best of the competition is more competitive than we are on quality and costs; more efficient than us in their operations; and they're achieving market-share growth and sizable profitability all at the same time,” Fields writes. “We can and must do the same.”

The full plan will be discussed in detail in January, Fields says.