The actions represent a considerable shift in Ford's North American product plans and investments toward smaller vehicles and fuel-efficient powertrains in both the near- and mid-term in line with rapid changes in customer buying preferences.
In addition to bringing six small vehicles to North America from the company's acclaimed European lineup, Ford is accelerating the introduction of fuel-efficient EcoBoost and all-new four-cylinder engines, boosting hybrid production and converting three existing truck and SUV plants for small car production, beginning this December.
Ford will convert three existing North American truck and SUV plants for small car production, with the first conversion beginning this December.
The moves are in addition to Ford's announcements in May and June that it is reducing its North American production plans for large trucks and
SUVs for the remainder of 2008, as well as increasing production of smaller cars and crossovers.
In tandem with the realignments, Ford will continue to offer targeted hourly buyouts at its U.S. plants and facilities, working with the UAW to secure competitive employment levels. Ford also said it remains on track to reduce salaried-related costs by 15 per cent in North America by Aug. 1.
Ford North America still expects to reduce annual operating costs by $5 billion by the end of 2008, at constant volume, mix and exchange, and excluding special items, compared with 2005.
In addition, the company said it plans to continue to reduce structural costs beyond 2008.
