Execution of the four priorities discussed in this section is expected to result in our Ford North America segment, and our Automotive sector overall, being profitable in 2009. This projection is based on the following operating assumptions in the 2008 and 2009 time period:
- Sales volume and mix of products stabilizing in North America, with total U.S. market share in the 14 percent to 15 percent range for Ford, Lincoln and Mercury brands, and lower fleet sales as a percentage of total sales. This in part reflects the cessation in 2006 of production of the Ford Taurus sedan in Atlanta and the Ford Freestar and Mercury Monterey minivans in Oakville, Ontario. In addition, we expect growth in sales volumes outside the United States.
- Cumulative reduction in annual operating costs for our Ford North America segment of about $5 billion by the end of 2008 compared with 2005, largely reflecting the personnel and capacity reductions discussed above, and continuing cost improvements in 2009.
