By Bill Koenig Bloomberg
Sept. 3 -- Ford Motor Co.'s chief said company 6 executives ``understand we're in trouble in North America'' as the company plans for its third restructuring in five years.
``We understand that it requires extraordinary action, and we are taking that,'' Chief Executive Officer Bill Ford told Newsweek in an interview posted on the magazine's Web site today. ``It's important for people understand that we get it.''
Ford, based in Dearborn, Michigan, will announce its newest plan later this month. The second-biggest U.S. automaker announced in January it would cut 30,000 jobs and close 14 plants in North America by 2012.
Ford has said this month's announcement is an acceleration of the January plan. The company has broadened restructuring beyond North America. Last week, Ford put its profitable U.K.- based Aston Martin luxury-car unit on the sales block. The automaker is debating the fate of its Jaguar and Land Rover luxury-vehicle subsidiaries. Land Rover became profitable in 2005 while Jaguar is losing money.
Bill Ford, great-grandson of company founder Henry Ford, became CEO in October 2001 and unveiled his first job-cutting plan in January 2002. Ford reported a $3.49 billion profit for 2004. Net income fell slid to $2 billion last year, as profits from car and truck loans made up for automotive losses. North America is the company's largest auto unit, where sales of profitable mid- and large-sized sport-utility vehicles fell.
North American losses have continued in 2006 as fuel prices caused sales of F-Series pickup trucks to fall below company projections. Overall, the North American unit has been unprofitable for seven of the past eight quarters and Ford posted a $1.44 billion net loss for the first half of 2006.
``But look, right now I'm focused on getting the North American operations back on track,'' Ford told Newsweek. ``That's where my energy and time is going. That's my passion.''
The interview mirrored comments the CEO made in an e-mail to employees on Sept. 1.
``The business model that sustained us for decades is no longer sufficient to sustain profitability,'' Ford said in the employee e-mail, a copy which the automaker provided to Bloomberg News.
Ford has relied on profits from F-Series, the top-selling line of vehicles in the U.S., and SUVs. In his e-mail, Ford said the company ``must change to a new business model that requires greater bottom-line contributions from cars and crossovers.'' Crossovers are vehicles that blend the features of cars and trucks and typically travel further on a gallon of fuel than pickups and SUVs.
``Over the past few months, I have made it my business to become more personally involved in the detailed operations of our business,'' Ford said in the e-mail. ``This has helped clarify for me what our needs are and what our priorities should be.''
In the Newsweek interview, Ford also said he's willing to recruit people to fill jobs ``regardless of the position.'' Asked by Newsweek if that meant ``all the way up to your own job,'' Ford replied, ``Absolutely.''
Ford called Carlos Ghosn, CEO of Japan's Nissan Motor Co. and France's Renault SA, in July to discuss a partnership if Ghosn fails to form an alliance with General Motors Corp., three people familiar with the matter said last month.
Ghosn said he wouldn't talk to Ford until his talks with GM conclude, said the people, who didn't want to be identified because the conversation was private. Ghosn and GM Chief Executive Rick Wagoner are scheduled to present a preliminary report on a possible alliance to their respective directors by mid-October.
The July phone call marks at least the third time that Ford, 49, has approached Ghosn. In a news conference last year, he confirmed previously trying to recruit Ghosn and Dieter Zetsche, now CEO of DaimlerChrysler AG. He also said, ``They weren't coming for my job.''
Ford declined to comment on his most recent contact with Ghosn while praising the executive.
Ford also told Newsweek that is role at Ford is ``not important because I'll always be part of this company. In that regard, I'm not a traditional CEO.''
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