Ford says turnaround plan accelerated by recent initiatives

By Jennifer Lanning Drey

Portland, Ore., Jan. 12 - Ford Motor Co.'s recent plant closures, divestitures and workforce downsizing have accelerated its turnaround plan, which is aggressively focused on restructuring the company, Alan Mulally, Ford's chief executive officer, said Friday at the Citigroup Auto Analysts of New York Conference in Dearborn, Mich..

"I would characterize that we are ahead of schedule on that restructuring. It's going very well," Mulally told investors.

Ford's restructuring plans look to return the company to profitability in 2009 - a plan that will cost Ford $10 billion in automotive cash and another $7 billion in restructuring costs, Mulally said.

However, he added, "I feel really good about where we are in the financing plans."

One of the specific goals of Ford's restructuring plan is to cut $5 billion from costs in 2008 and make additional cuts in the years that follow, he said.

The company's top priority in the turnaround plan is transitioning its products so that they meet changes in consumer demand, which has shifted from the larger trucks and SUVs to small, more fuel-efficient vehicles.

Ford is working to accelerate new product development to address that shift and expects 100% of its vehicles to be new or refreshed by 2010, Mulally said.

"It's going to be a different looking Ford when we get through with this restructuring," he said.

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