We have set out a strategy for returning the North American segment of Ford's Automotive sector to profitability in 2009. The vision guiding this plan is that of a more integrated company that leverages its scale, with fewer platforms and more global sharing of technology. This will mean building fewer kinds of drivetrains and powertrains, but in doing so, having the opportunity to improve them more often and customize vehicles to fit local markets and evolving consumer expectations.
Strategy for Returning to Profitability
To compete more effectively in today's global marketplace, and particularly in North America, we have embarked on a plan to restructure aggressively our Automotive business to address the realities of lower demand, higher fuel prices and the shifting model mix from trucks and large SUVs to more fuel-efficient vehicles. On January 23, 2006, we announced a major business improvement plan for our North American Automotive operations, which we refer to as the Way Forward plan.
On September 15, 2006, responding to changing facts and circumstances, we announced an acceleration of this plan, including actions designed to further reduce operating costs and increase the flow of new products. We are focusing on the following four key priorities:
For additional details on our plan, consult our 2006 Annual Report or 2006 Annual Report on Form 10-K for the year ended December 31, 2006. For periodic updates to progress on the Way Forward, visit www.ford.com.
