Ford page 7

Ford page 7 by ric gustafson


On September 5 2006, the company's senior executives crowded into Bill Ford Jr's private conference room. At 3:30 pm, Bill Ford Jr resigned as CEO and Allan Mulally was named the new CEO of Ford. Bill Ford Jr sent an email to employees talking about the challenges the company faces and why he was stepping aside. He explained that he would remain as executive chairman. The next morning, Ford Jr and Mulally addressed employees in a worldwide town hall meeting.
The news about the company's financial progress was not what Mulally wanted to hear. To bring Ford back to profitability, drastic measures had to happen. Sixteen plants by 2012 would have to close. Twenty five to thirty thousand jobs would have to be slashed. Dividend payments would have to be suspended.
Mulally paid a visit to the company's Product Development Center to see the company's lineup. He noticed right away that the Taurus was not there. He was told that it was replaced by the Fusion that was selling well. He was impressed by the Fusion but disappointed by the Ford 500. Mulally was worried because 2007 was projected to be the worst year in the company's history. The projected loss was to be more than $ 12 billion dollars. The company lost $ 5.8 billion in a three month period, the worst quarterly loss in fourteen years.


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Peace and God's blessings. Love Ric