The Way Forward

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The Way Forward

Ford Motor Company

The Ford Motor Company is an United States multinational corporation and the world's List of automobile manufacturers#World Motor Vehicle Production by Manufacturer based on worldwide vehicle sales, following Toyota, General Motors, and Volkswagen Group....
's restructuring plan, made public in 2006, is known as The Way Forward.

Ford is attempting to reduce fixed capital costs while maintaining a special focus on cars and car-based crossover vehicles. Over time, it hopes to make more of its product line profitable instead of relying on a limited portion of the products for profit. Making good profits across the product line requires that the company reduce the costs of development and production, while introducing new products that connect with consumers.

In the latter half of 2005, Chairman Bill Ford

William Clay Ford, Jr.

William Clay "Bill" Ford Jr. , is the great-grandson of Henry Ford, and serves as the Executive Chairman of the Board of Directors of Ford Motor Company....
asked newly-appointed Ford Americas Division President Mark Fields

Mark Fields (businessman)

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Ford Motor Company

William Clay Ford, Jr.

Mark Fields (businessman)

Mark Fields is Executive Vice President, Ford Motor Company; President, The Americas and an executive of the Ford Motor Company. As head of the Americas division, Fields was tapped to develop Ford's "The Way Forward" plan, an effort to repair the ailing automaker....
to develop a plan to return the company to profitability. Fields previewed the Plan, dubbed "The Way Forward", at the December 7, 2005 board meeting of the company; and it was unveiled to the public on January 23, 2006. The plan was revised on September 15, 2006 to accelerate plant closings.

"" includes to match current market realities, dropping some unprofitable and inefficient models, consolidating production lines, and shutting down seven vehicle assembly plants and seven parts factories. Among these are St. Louis Assembly

St. Louis Assembly

St. Louis Assembly is an automobile factory owned by Ford Motor Company in Hazelwood, Missouri. It was idled in 2006 as part of Ford's "Ford Motor Company#"The Way Forward"" plan....
(near St. Louis

St. Louis, Missouri

St. Louis is an independent city in the U.S. state of Missouri, located near the confluence of the Mississippi River and the Missouri River. St....
), Atlanta Assembly

Atlanta Assembly

File:Ford atl3.jpgAtlanta Assembly was an automobile factory owned by Ford Motor Company in Hapeville, Georgia. Harbour Consulting rated it as the most efficient auto plant in North America in 2006....
(near Atlanta), Batavia Transmission

Batavia Transmission

Batavia Transmission is a Transmission factory owned by Ford Motor Company in Batavia, Ohio. The plant opened on July 24, 1980. The plant produced front-wheel drive transmissions for Ford, Mercury , and Mazda vehicles....
(Batavia

Batavia, Ohio

Batavia is a village #Ohio in and the county seat of Clermont County, Ohio, Ohio, United States. The population was 1,617 at the United States Census 2000....
, Ohio

Ohio

Ohio is a Midwestern United States U.S. state of the United States. As part of the Great Lakes region , Ohio has long been a cultural and geographical crossroads in North America....
), Windsor Casting

Windsor Casting

Windsor Casting is an automobile factory owned by Ford Motor Company in Windsor, Ontario, Canada. The plant first opened in 1981 and is located at 1 Quality Way on of land....
(Windsor

Windsor, Ontario

Windsor is the southernmost city in Canada and lies at the western end of the heavily populated Quebec City-Windsor Corridor. Windsor is located south of Detroit, Michigan, is separated from that city by the Detroit River, and has views of the Detroit skyline....
, Ontario

Ontario

Ontario is a Provinces and territories of Canada located in the Central Canada part of Canada, the largest by population and second largest, after Quebec, in total area....
, Canada

Canada

Canada is a country occupying most of northern North America, extending from the Atlantic Ocean in the east to the Pacific Ocean in the west and northward into the Arctic Ocean....
), and Wixom Assembly (Wixom, Michigan

Michigan

Michigan is a Midwestern United States U.S. state of the United States of America. It was named after Lake Michigan, whose name is a French adaptation of the Anishinaabe language term mishigama, meaning "large water" or "large lake"....
). Up to 30,000 hourly and salaried jobs (28% of the total workforce) in North America over the next six years are expected to be eliminated, which is comparable to similar cutbacks previously announced at General Motors

General Motors

General Motors Corporation , founded in 1908, is the world's second-largest automaker after Toyota, ranked by 2008 global unit sales. GM was the global sales leader for 77 consecutive calendar years from 1931 to 2008....
. These cutbacks are consistent with Ford's roughly 25% decline in U.S. automotive market share since the mid-late 1990s.

New cars were developed faster using the new Global Product Development System (GPDS). This brings Ford's cycle time closer to its Japanese rivals.

Ford's realignment also included the sale of its wholly owned subsidiary

Subsidiary

A subsidiary, in business matters, is an entity that is controlled by a bigger and more powerful entity. The controlled entity is called a company , corporation, or limited liability company, and the controlling entity is called its parent ....
, Hertz Rent-a-Car

The Hertz Corporation

The Hertz Corporation is the second largest general-use car rental company in the world, with 1,900 locations in the United States and 5,100 worldwide....
to a private equity

Private equity

In finance, private equity is an asset class consisting of Stock securities in operating companies that are not publicly traded on a stock exchange....
group for $15 billion in cash and debt acquisition. The sale was completed on December 22, 2005. A joint venture

Joint venture

A joint venture is an entity formed between two or more parties to undertake economic activity together. The parties agree to create a new entity by both contributing Ownership equity, and they then share in the revenues, expenses, and control of the enterprise....
with Mahindra and Mahindra Limited of India

India

India, officially the Republic of India , is a country in South Asia. It is the List of countries and outlying territories by total area country by geographical area, the List of countries by population country, and the most populous liberal democracy in the world....
ended with the sale of Ford's 15 percent stake in 2005.

Ford has announced a projected return to profitability sometime after 2010

Plant closings

Ford reportedly plans to close 14 manufacturing plants by 2012 including 7 that assemble cars. Short-term results (by 2008) will reduce Ford's assembly capacity by 26%.

The first closures were announced on January 23, 2006. Ford announced on April 13, 2006 that two more plants would close as well. The plan was accelerated with a mid-September announcement which accelerated the closure of the Norfolk plant and added the Essex engine and Maumee stamping plants to the list.

Date announced	Plant name	Location	Date of closing	Products	Employees
January 23, 2006	St. Louis Assembly St. Louis Assembly St. Louis Assembly is an automobile factory owned by Ford Motor Company in Hazelwood, Missouri. It was idled in 2006 as part of Ford's "Ford Motor Company#"The Way Forward"" plan....	Hazelwood Hazelwood, Missouri Hazelwood is a second-ring suburb of St. Louis, located in northwestern St. Louis County, Missouri, Missouri, United States. The population was 25,523 as of 2006.... , Missouri Missouri Missouri is a U.S. state in the Midwestern United States of the United States bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska....	2006	Ford Explorer Ford Explorer The Ford Explorer is a mid-size sport utility vehicle sold in North America and built by the Ford Motor Company since 1990. It's manufactured in Louisville, Kentucky .... Lincoln Aviator Lincoln Aviator The Lincoln Aviator was a mid-size sport utility vehicle produced by the Ford Motor Company's Lincoln luxury division. It was introduced in 2003, and production ended in 2005.... Mercury Mountaineer Mercury Mountaineer The Mercury Mountaineer is a midsize luxury sport utility vehicle manufactured by the Mercury brand name and owned by the Ford Motor Company. The Mountaineer shares many features with the Ford Explorer, and in terms of hardware, the vehicles are virtually identical....	1,445
	Atlanta Assembly Atlanta Assembly File:Ford atl3.jpgAtlanta Assembly was an automobile factory owned by Ford Motor Company in Hapeville, Georgia. Harbour Consulting rated it as the most efficient auto plant in North America in 2006....	Hapeville, Georgia Georgia (U.S. state) Georgia is a U.S. state in the United States and was one of the original Thirteen Colonies that revolted against United Kingdom rule in the American Revolution....	Oct. 2006	Ford Taurus Ford Taurus The Ford Taurus is an automobile manufactured by the Ford Motor Company in the United States. Originally introduced in the 1986 model year, it has remained in near continuous production for more than two decades, making it the fourth oldest nameplate that is currently sold in the Ford lineup.... Mercury Sable Mercury Sable The Mercury Sable was a mid-size /full-size luxury sedan created by the Ford Motor Company and sold under the Mercury brand. It is a badge engineering of the Ford Taurus....	2,028
	Batavia Transmission Batavia Transmission Batavia Transmission is a Transmission factory owned by Ford Motor Company in Batavia, Ohio. The plant opened on July 24, 1980. The plant produced front-wheel drive transmissions for Ford, Mercury , and Mazda vehicles....	Batavia Batavia, Ohio Batavia is a village #Ohio in and the county seat of Clermont County, Ohio, Ohio, United States. The population was 1,617 at the United States Census 2000.... , Ohio Ohio Ohio is a Midwestern United States U.S. state of the United States. As part of the Great Lakes region , Ohio has long been a cultural and geographical crossroads in North America....	2008	transmissions List of Ford transmissions Ford Motor Company transmission ...	1,745
	Windsor Casting Windsor Casting Windsor Casting is an automobile factory owned by Ford Motor Company in Windsor, Ontario, Canada. The plant first opened in 1981 and is located at 1 Quality Way on of land....	Windsor Windsor, Ontario Windsor is the southernmost city in Canada and lies at the western end of the heavily populated Quebec City-Windsor Corridor. Windsor is located south of Detroit, Michigan, is separated from that city by the Detroit River, and has views of the Detroit skyline.... , Ontario Ontario Ontario is a Provinces and territories of Canada located in the Central Canada part of Canada, the largest by population and second largest, after Quebec, in total area.... , Canada Canada Canada is a country occupying most of northern North America, extending from the Atlantic Ocean in the east to the Pacific Ocean in the west and northward into the Arctic Ocean....	2008	Engine blocks, parts	684
	Wixom Assembly	Wixom, Michigan Michigan Michigan is a Midwestern United States U.S. state of the United States of America. It was named after Lake Michigan, whose name is a French adaptation of the Anishinaabe language term mishigama, meaning "large water" or "large lake"....	June 2007	Lincoln Town Car Lincoln Town Car The Lincoln Town Car is a full-size, rear-wheel drive luxury vehicles sedan sold by Ford Motor Company upscale Lincoln brand. The Town Car features a V8 engine and large exterior and interior dimensions.... Lincoln LS Lincoln LS The Lincoln LS is a mid-size, rear wheel drive sedan from Lincoln . Until 2006 it was based on the Ford DEW platform shared with the Jaguar S-Type; thereafter, the Ford Thunderbird.... Ford GT Ford GT The Ford GT is a mid-engined sports car and is the world's 11th fastest production car. It was built by Ford Motor Company from 2003 to 2006. It began as a concept car designed in anticipation of Ford Motor Company centennial year and as part of its drive to showcase and revive its "heritage" names such as Ford Mustang and Ford Thunderbird....	1,567
April 13, 2006	Twin Cities Assembly Twin Cities Assembly Plant Ford Motor Company's Twin Cities Assembly Plant is located next to the Mississippi River in the Highland Park, Saint Paul neighborhood of St. Paul, Minnesota, Minnesota, United States....	St. Paul, Minnesota Minnesota Minnesota is a U.S. state in the Midwestern United States of the United States. The twelfth largest state by area in the U.S., it is the twenty-first most populous, with just over five million residents.... , USA United States The United States of America is a Federal government constitutional republic comprising U.S. state and a federal district. The country is situated mostly in central North America, where its Contiguous United States and Washington, D.C., the Capital districts and territories, lie between the Pacific Ocean and Atlantic Oceans, Borders of the U...	2008	Ford Ranger Ford Ranger Ford Ranger is a name used on two distinct compact pickup truck lines by the Ford Motor Company and by a marketing arrangement with Mazda.* A Ford-designed compact pickup truck, which is sold and manufactured in North America as well as Brazil, Chile and Argentina.... Mazda B-Series Mazda B-Series Mazda has sold two entirely different compact pickup trucks under the B-Series name. The basic B-Series, like many vehicles, is named for its engine displacement....	1,885
April 13, 2006	Norfolk Assembly Norfolk Assembly Norfolk Assembly was a manufacturing plant operated by Ford beginning April 20, 1925 and most recently producing the Ford F150 truck. The plant was located on the Elizabeth River , near downtown Norfolk, Virginia, and produced its final truck just after 7AM, the morning of Thursday, June 28, 2007....	Norfolk Norfolk, Virginia Norfolk is an independent city in the Virginia in the United States. With a population of 234,403 as of the United States Census 2000, it is Virginia's second-largest incorporated city.... , Virginia Virginia The Commonwealth of Virginia is an United States U.S. state on the East Coast of the United States of the Southern United States. The state is known as the "Old Dominion" and sometimes as "Mother of Presidents", because it is the birthplace of Lists of United States Presidents by place of birth#By state.... , USA	2007	Ford F-Series Ford F-Series The F-Series is a series of pickup truck#North American full-size pickups from Ford Motor Company sold for over five decades. The most popular variant of the F-Series is the F-150....	2,433
September 14, 2006	Essex Engine	Windsor, Ontario Windsor, Ontario Windsor is the southernmost city in Canada and lies at the western end of the heavily populated Quebec City-Windsor Corridor. Windsor is located south of Detroit, Michigan, is separated from that city by the Detroit River, and has views of the Detroit skyline.... , Canada Canada Canada is a country occupying most of northern North America, extending from the Atlantic Ocean in the east to the Pacific Ocean in the west and northward into the Arctic Ocean....	2008	Ford Triton engine Ford Essex V6 engine Ford Essex V6 engine Ford Motor Company has produced two different V6 piston engines which have been commonly referred to as Essex:* Ford Essex V6 engine - A 60? V6, 2.5/3.0 L...
September 14, 2006	Maumee Stamping	Maumee, Ohio Maumee, Ohio ?Maumee is a city in Lucas County, Ohio, Ohio, United States. It is a suburb of Toledo, Ohio along the Maumee River. The population was 15,237 at the United States Census 2000....	2008	body panels
Total					11,787

Product replacements

The following products are currently assembled at the Wixom (Michigan) Assembly plant, which is closing. They will be replaced by future vehicles. In June 2006, Ford announced that it will not move production to St. Thomas

St. Thomas, Ontario

St. Thomas is a city in southwestern Ontario, Canada. It is the seat for Elgin County, Ontario and gained its city charter on March 4, 1881....
, Ontario

Ontario

Ontario is a Provinces and territories of Canada located in the Central Canada part of Canada, the largest by population and second largest, after Quebec, in total area....
, Canada (where its body-on-frame

Body-on-frame

Body-on-frame is an automobile construction technology. Mounting a separate body to a rigid frame which supports the drivetrain was the original method of building automobiles, and its use continues to this day....
platform-mates Ford Crown Victoria and Mercury Grand Marquis are produced), likely meaning that Town Car production would end permanently. Ford eventually changed its mind, and the company reversed this decision, announcing in September that it would move the Town Car after all.

Date announced	Product	End of production	Replacement
January 23, 2006	Ford GT Ford GT The Ford GT is a mid-engined sports car and is the world's 11th fastest production car. It was built by Ford Motor Company from 2003 to 2006. It began as a concept car designed in anticipation of Ford Motor Company centennial year and as part of its drive to showcase and revive its "heritage" names such as Ford Mustang and Ford Thunderbird....	September 21, 2006	Shelby Cobra GT500 Shelby Mustang The Shelby Mustang is a high performance variant of the Ford Mustang, built by Ford from 1968 through 1970. The 1965, 1966 and 1967 Shelbys were a series of Ford Mustangs which were specially modified by Carroll Shelby's company and sold under the name Shelby GT....
	Lincoln LS Lincoln LS The Lincoln LS is a mid-size, rear wheel drive sedan from Lincoln . Until 2006 it was based on the Ford DEW platform shared with the Jaguar S-Type; thereafter, the Ford Thunderbird....	April 2006	Lincoln MKZ Lincoln MKZ The Lincoln MKZ, initially named the Lincoln Zephyr, is a mid-size, entry-level luxury car from the Lincoln division of the Ford Motor Company.... Lincoln MKS Lincoln MKS The Lincoln MKS is a full-size luxury sedan from the Lincoln division of the Ford Motor Company. The MKS first appeared in Concept vehicle at the North American International Auto Show in January 2006 with the production version, a 2009 Model year, appearing later at the Greater Los Angeles Auto Show in November 2007....
	Lincoln Town Car Lincoln Town Car The Lincoln Town Car is a full-size, rear-wheel drive luxury vehicles sedan sold by Ford Motor Company upscale Lincoln brand. The Town Car features a V8 engine and large exterior and interior dimensions....	June 2007	Assembly to be moved

Staff reductions

Up to 30,000 factory jobs would be eliminated with the downsizing envisioned in The Way Forward. The company is also eliminating 4,000 salaried, contract, and agency jobs during the first quarter of 2006, and the company is eliminating 6 or 7 corporate officer positions out of 53 immediately.

Ford is reportedly offering severance package

Severance package

A severance package is pay and benefits an employee receives when they termination of employment at a company. In addition to the employee's remaining regular pay, it may include some of the following:...
s of up to $100,000 for workers who are willing to give up all future benefits except their pension

Pension

In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment.The terms retirement plan or superannuation refer to a pension granted upon retirement ....
. The company will also pay up to $15,000 in tuition

Tuition

Tuition means "instruction" or "teaching." In American English, the term "tuition" is often used to refer to a fee charged for educational instruction; especially at a formal institution of learning or by a private tutor usually in the form of one-to-one tuition....
for workers returning to school. Workers over 55 can reportedly get a $35,000 bonus to retire early, provided they have 30 years of service with the company, and those with 28 years can get leave and 85% pay for two years.

Divestment

Ford's plan called for divesting in some businesses in order to raise cash.

Jaguar Cars and Land Rover
Land Rover

Land Rover is an all-terrain vehicle and Multi Purpose Vehicle manufacturer, based in Solihull, West Midlands , England, now operated as part of the Jaguar Land Rover business owned by Tata Motors of India....
— As of March 26th 2008, Tata Motors
Tata Motors

Tata Motors Limited, formerly known as TELCO , is a multinational corporation headquartered in Mumbai, India. It is India's largest passenger automobile and commercial vehicle manufacturing company....
reached agreement with Ford to purchase their Jaguar Land Rover operations for two billion dollars. The sale is expected to be completed by the end of the second quarter of 2008.
Aston Martin
Aston Martin

Aston Martin Lagonda Limited is a British manufacturer of luxury sports cars, based in Gaydon, Warwickshire. The company name is derived from the name of one of the company's founders, Lionel Martin, and from the Aston Hill hillclimbing near Aston Clinton in Buckinghamshire...
— purchased by a British consortium led by Dave Richards of Prodrive for £479 million.
Automobile Protection Corporation — Extended warranty company APCO will also be sold

New products

Ford will also reportedly invest in new products and productions sites to better compete in the marketplace. The company plans to build a new low-cost manufacturing site in North America, possibly in Mexico

Mexico

The United Mexican States , commonly known as Mexico , is a federalism constitutionalism republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of Mexico....
.

Product plans reportedly call for more crossover SUV

Crossover SUV

A crossover — variously called CUV or crossover utility vehicle — is a marketing term for a vehicle that derives from a car automobile platform while borrowing features from an Sport utility vehicle or Minivan....
s, compact car

Compact car

A compact , small family or c-segment car is a car classification of automobile which are larger than a supermini car and smaller than a large family car....
s, and hybrid vehicle

Hybrid vehicle

File:HondaInsight.jpgA hybrid vehicle is a vehicle that uses two or more distinct power sources to move the vehicle . The term most commonly refers to hybrid electric vehicles , which combine an internal combustion engine and one or more electric motors....
s. The company announced the Ford Five Hundred

Ford Five Hundred

The Ford Five Hundred is a full-size sedan that was produced by the Ford Motor Company during the 2005 to 2007 model years in North America. In North America, the name evoked the classic Ford Fairlane and Ford Galaxie models of the 1950s through 1970s....
/Mercury Montego

Mercury Montego

The Mercury Montego, was a mid-size vehicle in Ford Motor Company Mercury line from 1968-76. The name had first been used in 1967 on the Meteor Montego, the top trim level in the Mercury-derived Canadian Meteor line....
and Ford Edge

Ford Edge

The Edge is a premium mid-size crossover SUV manufactured by Ford Motor Company, based on the Ford CD3 platform — and marketed in slightly modified form as the Lincoln MKX....
/Lincoln MKX

Lincoln MKX

The Lincoln MKX is a mid-size luxury Crossover from Ford Motor Company Lincoln division and a de facto successor to the Lincoln Aviator luxury Sport utility vehicle....
hybrids as part of the plan.

Ford also intends to revive the Lincoln

Lincoln (automobile)

Lincoln is a brand of Ford Motor Company. Founded in 1917 by Henry M. Leland and acquired by Ford in 1922, Lincoln has manufactured vehicles since the 1920s....
and Mercury

Mercury (automobile)

Mercury is an automobile marque of the Ford Motor Company founded in 1939 by Edsel Ford, son of Henry Ford, to market entry-level-luxury cars slotted between Ford-branded regular models and Lincoln -branded luxury vehicles, similar to General Motors Corporation' Buick brand and Chrysler's Chrysler brand....
brands. Although Lincoln will become the larger seller of the two, Mercury is intended to become an upscale alternative, marketed especially toward women.