Dearborn, Michigan – The Ford Motor Company has announced that it will continue to cut costs, both in North America and on a global scale, and invest in smaller, more fuel-efficient vehicles, in the wake of a third quarter net loss of US$129 million.
The company said that it plans an additional 10 per cent reduction in North American salaried personnel-related costs; a reduction in capital spending, enabled by efficiencies in global engineering and product development; a reduction in manufacturing, technology and advertising costs due to its “One Ford” global operations; and a global reduction of inventory. Ford also said it would continue to explore divestitures of non-core assets, and utilize equity-for-debt swaps and other incremental sources of financing.
The company also reiterated its continued investment in smaller, more fuel-efficient, high-quality products, and that nearly all planned product programs remain on track and on time, “aside from a few select vehicles that will be deferred until industry volumes recover,” the company said in a statement. It will also reduce spending for large vehicles in declining segments.
“We continue to take fast and decisive action implementing our plan and responding to the rapidly changing business environment,” said Ford president and CEO Alan Mulally. “We have a strategy that is broad and specific enough to handle the dramatic changes in today’s environment. We will continue to assess the rapidly changing business environment and modify implementation of our plan accordingly.”